Growth stocks have been one of the main victims of heavy rotations in investors’ portfolios in the third quarter of 2022, along with technology stocks, due to the rise of an inflation that increasingly appears to be less and less transitory, in addition to the impact of the war in Ukraine.
On top of this, there is uncertainty that the restrictive monetary policies implemented by central banks to reduce inflation, involving the withdrawal of monetary stimulus and higher interest rates, could “cool” the economy and lead to an economic recession.
In this sense, although the U.S. economy entered a “technical recession”, as the annualized Gross Domestic Product (GDP) declined for two consecutive quarters, many experts do not consider it sufficient and it still seems possible to achieve a soft landing, that is, to raise interest rates without causing a recession, with low or neutral growth without going negative.
How to find the best growth stocks
A great way to find the best growth stocks is to look for companies in high-growth industries, such as cybersecurity, 5G connectivity and video games, that are poised to benefit from these long-term trends and are leaders in their sectors.
Another option is to look to star managers in this area, most notably Cathie Wood and its ARK Innovation ETF (ARKK) fund, which focuses on high-growth disruptive companies. Recent declines may be a buying opportunity for investors who rely on this type of active management.
Five Growth Stocks for 4Q 2022
In this article, we present you with five growth stocks to consider for the fourth quarter, three globally and two in the Spanish market. The five stocks, all available on eToro and ordered from largest to smallest market capitalization, are as follows:
- Amazon (AMZN)
- Salesforce (CRM)
- Advanced Micro Devices (AMD)
- Amadeus (AMS.MC)
- Grifols (GRF.MC)