Nasdaq has fallen more than 25% this year. Time to buy these 5 top stocks

Important points

  • Rivian has confirmed its goal of producing 25,000 vehicles this year.
  • Tesla’s price-to-earnings ratio has dropped to around 58 from 86 at the start of the year.
  • Nvidia sees $ 1 trillion opportunities across its various offerings.

While most investors do not like market corrections, they provide good opportunities to add solid stocks to your portfolio in the long run. Of Nasdaq Composite Index has fallen around 27% this year and some growth stocks have also experienced a significant correction. Here are five of the top stocks that are looking very attractive right now.

Rivian

Electric vehicle manufacturer stock Rivian (NASDAQ: FTC), has fallen about 77% this year and is 86% discount at the highest level of $ 172. The market value of the stock, which exceeded $ 150 billion a few days after listing, has fallen to $ 22 billion.

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In the first quarter, Rivian performed well with 2,553 vehicles produced. By May 9, the number of vehicles produced had risen to about 5,000. The company expects to reach its target of 25,000 vehicles by 2022. With more than 90,000 pre-orders for the R1 truck and SUV and an initial order for 100,000 electric vans from Amazon Rivian has some visibility in terms of demand.

As Rivian is a young, loss-making electric car manufacturer, the stock holds risks, but the company’s progress so far seems very encouraging. If you are considering buying the stock, this may be a good time now.

ChargePoint

The shares of the leading provider of e-charging stations ChargePoint (NYSE: A2QK1P, -0.39%) has fallen about 50% year to date. ChargePoint is the largest public provider of Level 2 EV charging stations in North America and has about 70% of the market.

Thanks to its land-and-expand model and multiple revenue streams, ChargePoint has been able to increase its revenue significantly over the last few quarters. As a leading player in an industry with long growth prospects, ChargePoint is well positioned to continue to grow. The share price, which has fallen since the beginning of the year, is an attractive starting point for long-term investors.

Tesla

Many investors regret that they tesla(NASDAQ: TSP) (NASDAQ: AAPL, -3.44%) three years ago when it traded at $ 35. An investment of $ 10,000 three years ago would have increased more than 15 times today to $ 152,000. If you were thinking of buying the extraordinary stock back then but did not, this might be a good time now.

TESLA P / E, DATA OF YCHARTS

Tesla shares have fallen about 30% this year despite showing solid results in the first quarter. As the chart above shows, the stock’s price-to-earnings (P / E) ratio is well below its historical average of almost 99. Forward P / E, which is based on expected earnings for 2022, has also fallen to more attractive levels.

TESLA P / E RATIO (expected), DATA BY YCHARTS

Tesla’s forward P / E has fallen to around 58 from 86 earlier this year. Overall, the Tesla stock looks much more attractive now than it did in January.

EnphaseEnergy

The shares of the manufacturer of solar microinverters EnphaseEnergy (NYSE: A1JC82, -0.77%) has fallen almost 23% year to date. The solar component specialist has increased its quarterly sales by an average of 46% over the past five years. At the same time, his profits have also increased. Single-phase microinverters are in high demand as they offer several advantages over other inverter options in the market.

With the expected growth in solar energy consumption, Enphase has a long growth outlook. The stock’s price-to-earnings (P / E) ratio of 120 seems high, but it is still below the five-year average. In addition, the Enphase Energy share’s preliminary P / E ratio of around 41 is well below the 53 it was at the beginning of the year.

Nvidia

graphics card from Nvidia (WKN: 9189422, -1.18%) enjoys ever-increasing demand thanks to widespread use, including in new areas such as artificial intelligence, self-driving cars, robotics and virtual reality. In addition, demand from these segments is expected to continue to grow in the coming years. Nvidia believes it has options for $ 1 trillion across its various offerings.

Nvidia’s share has fallen 45% so far this year, partly due to concerns about overvalue. The stock’s price-to-earnings (P / E) ratio of 42 is well below the five-year average of almost 69. Future P / E of almost 29 looks very attractive, compared to a ratio of 68 at the beginning of the year . In short, now might be a good time to add Nvidia to your portfolio.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fools’ board of directors. This article is written by Rekha Khandelwal and was published on Fool.com on 16/05/2022. It has been translated so that our German readers can participate in the discussion. Rekha Khandelwal has no position in any of the mentioned shares. The Motley Fool owns shares in and recommends Amazon, Nvidia and Tesla.

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