3 explosive growth stocks to keep on your radar

The search for growth stocks is still active for many investors. While sentiment for many high-growth stocks is at an all-time low, many growth investors now have opportunities available at much more attractive prices.

This first half of 2022 has been the worst year in a very long time on the stock market. This was even truer for growth stocks. In the second trimester only, Nasdaq recorded a drop of more than 22%. This is the worst level since the Great Recession.

However, if history is our guide, these declines do not last forever. At some point, buyers come out of the woods to stock up on these stocks. As a result, the search for quality among explosively growing stocks is on.

The following list includes three explosively growing stocks that I believe have quality attributes that long-term investors might want to consider. For those looking to buy the dip, here are three great options to consider.

BKNG Reserve credits $2,091.57
ICLR Icon $240.21
AMZN Amazon $141.23

Reservation credits (BKNG)

Source: Andrei Solovev / Shutterstock

Still down about 15% since the start of the year, Reserve credits (NASDAQ:BKNG) currently remains a very compelling choice of many leading analysts. Analysts seem to believe that the pent-up demand we’ve seen play out in the travel space could continue for years.

All the while, the stock market discounted this growth in favor of the idea that we might be heading into a recession (thus, slower prospective growth).

It’s probably true. However, demand metrics for the travel industry are incredibly strong right now. Consumer balance sheets are strong, as evidenced by strong bookings that span several months. With many hotels and services now booking months in advance, Booking Holdings has a pretty solid backlog to build on.

The company’s recent earnings, which posted non-GAAP revenue of $161 million in the last quarter, are notable. For those who have been in the travel industry for a long time, Booking Holdings is one of the best ways to gain long-term exposure to the industry right now.

Icon (ICLR)

Medicine and healthcare concept - team or group of doctors and nurses

Source: Supavadee butradee / Shutterstock.com

Icon (NASDAQ:ICLR) is a rather interesting growth stock that I recently dove into for the first time. Icon helps businesses in the healthcare industry market and grow their products and services.

Founded in 1990 with just five employees, Icon has grown to impressive size. This company now employs more than 40,000 people worldwide. Over the past 30 years, Icon has found a path to growth and has sought organic growth for its existing business.

Analysts expect Icon to grow alongside the broader market at a rate of around 6.5% per year over the long term. As the outsourcing of clinical expenses by healthcare companies increases due to labor shortages, Icon is expected to take on much of this slack. Therefore, I expect the growth rate of this company to far exceed that of the industry in the long term.

Amazon (AMZN)


Source: various photographs / Shutterstock.com

No list of explosive growth stocks is complete without discussing Amazon (NASDAQ:AMZN). Amazon, the world’s largest e-commerce company, is what most investors think of when considering growth stocks.

Much of Amazon’s recent growth has come from its cloud division (Amazon Web Services). AWS has continued to grow at a double-digit rate for years, with many anticipating no slowdown as companies seek to migrate to the cloud, using the most trusted partners.

It’s Amazon’s core e-commerce business that worries many investors. Given that we may be heading into a recession, online spending could drop. This will likely affect the company’s valuation as revenues and profits fall.

However, as Amazon continues to transform itself more into a cloud and logistics company than an e-commerce giant, perhaps the market view on Amazon will change. Those taking a really long-term view on this explosive growth stock may want to take a look at these levels. After all, Amazon’s valuation hasn’t been this cheap in a while.

As of the date of publication, Chris MacDonald holds a position at Amazon. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Chris MacDonald’s love of investing has led him to pursue an MBA in finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative long-term investment outlook.

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