2 growth stocks I am buying now

Growth stocks remain in a period of weakness. Or in a really deep fall and crash. For foolish investors, however, this is an opportunity to get impressive quality at significantly lower prices and reduce the cost base.

For this reason, I consistently continue to buy growth stocks. On my shopping radar this week: Etsy (WKN: A14P98) and Mercadolibre (WKN: A0MYNP), my top two rankings. I would like more of the attractive growth cake right now for the following reasons.

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Mercadolibre: Growth stocks I buy now!

The management of Mercadolibre has once again shown what is really behind this growth stock. In the first quarter of the financial year 2022, revenue increased again by 67.4% in local currencies to $ 2.2 billion. Gross volume of goods and volume of payments are also rising rapidly. With a net profit of $ 65 million, Latin America was even in the black.

Nevertheless, the stock price continues to collapse and is currently struggling with the 800 euro mark. Why?! Simply because the broader market is yielding unprofitable growth stocks. Whereby Mercadolibre is moving towards profitability. But that is just one thing that short-term investors overlook.

Mercadolibre’s management is working flat out to win over the Latin American market for e-commerce, digital payment services and many other services. Whether it’s loans, asset management, crypto services, your own logistics and delivery service: There’s a lot behind this growth stock to dominate your own market. With a market value of $ 38.8 billion and a price-to-sale multiple of less than 4.2 based on its first-quarter earnings, this stock is way, way too cheap for me. Basically, I have a clue here Amazonsimilar potential. The continuation of the growth story actually shows it very well.

Etsy: P / E 25

Etsy stock is profitable for a growth stock. That’s actually a good sign. In terms of how profitable it is, we can answer it very simply: With an annual earnings per. stock at $ 3.40 and a stock price of $ 86.40, we are currently seeing a price-to-earnings ratio of 25, 25 … however, that is not value. . But really not expensive for a growth stock.

Currently, there are short-term construction sites. E-commerce is no longer a driving force for many growth stocks. After the pandemic, consumers seem to be more focused on experiences than purchases. They also prefer to rummage around in the inner cities. But e-commerce is here to stay. Etsy offers unique options and products that are just not available in inner cities. Due to the niche, this is not a small, limited market. No, management predicted a trillion potential.

So now is a good time for me to buy this growth stock again. With a market value of only $ 11 billion, I do not see the possibility of being fully appreciated. In any case, a price-to-earnings ratio of 25 is not expensive for Etsy. Especially not if a phase begins in the next three to five years where earnings growth may exceed a small sales growth.

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Vincent owns shares in Etsy and Mercadolibre. John Mackey, CEO of Amazon’s subsidiary Whole Foods Market, is a member of The Motley Fools’ board of directors. The Motley Fool owns shares in and recommends Amazon, Etsy and MercadoLibre.

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