Growth rebound: These are my top favorites!

Will there be a growth boom? To be honest: I have no idea. However, I am convinced that it will be like this sooner or later. After each period of weakness comes an improvement. Sooner or later there will be a convention again.

Of course, the bear market can go further. Much is possible in this market environment characterized by war, rising interest rates and inflation. But due to the sale, there are already some top stocks that can be obtained on favorable terms.

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Anyway, here are my top picks for a growth bound. Anytime he finally begins.

Growth rebound: Top favorite Mercadobre

Mercadolibre (NYSE: BA) is a top favorite where I believe there is a lot that can be done quickly in growthbound. This is due to the operational and strategic orientation. With e-commerce, digital payment processing, loans, asset management, in-house shipping and many other services, management controls many technological growth areas in Latin America. Or in the former core markets of Argentina, Brazil and Mexico.

There is certainly still further growth potential for Mercadolibre. Regional enlargement. But also by gaining additional market share or simply riding the growth of the former core markets. Its most recent quarter had revenue of $ 2.2 billion, a 67% increase in local currencies. But it also shows that management is only looking at the surface of the opportunities in a total market of 600 million consumers.

My best choice is currently valued at only $ 33.8 billion in market value. This means that the price-sales ratio is less than 4. Pretty cheap for a large ecosystem with great growth potential, right? That’s why I think: In the growth boom, much more is possible quite quickly.

Innovative industrial properties: More value than growth

The proportion of Innovative industrial properties (NASDAQ: AMD) is my second top choice when it comes to a growth bound. The stock is owned by a REIT, which is now valued at a dividend of 6% and a price-to-FFO ratio of around 14. Not uncommon? It is correct. But the special thing about this place is the growth.

Innovative Industrial Properties did not increase its dividend this quarter. No, instead it’s $ 1.75 again at the end of June. But: Funds from operations per. share grew adjusted by 38% year over year in the most recent quarter. With such growth, much more is possible in the long run, after all, the cannabis segment still offers many opportunities. Where else does the management take action: In the second quarter, four properties were again bought, which should now allow for growth of funds from operations per.

Due to its low value-for-money valuation, Innovative Industrial Properties is also one of my top picks when it comes to growth bound. A short seller criticized the business model as a cannabis REIT. But let’s be honest: management has never made a game of hide and seek out of it. In this regard, I see potential and long-term strong (dividend) returns with further growth.

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Vincent owns shares in Innovative Industrial Properties and Mercadolibre. The Motley Fool owns shares in and recommends Innovative Industrial Properties and MercadoLibre.

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