Wall Street investing will have ups and downs. Since the decade started, all three major stock indexes have seen bear and bull markets, with the growth-stock-driven Nasdaq Composite (NASDAQINDEX: ^IXIC) fluctuating the most.
The 2022 bear market Nasdaq Composite brought up the caboose. It fell 33%, worse than the Dow Jones Industrial Average and S&P 500. However, since 2023, the Nasdaq has led. It's gained over 55% in 14 months and broke its November 2021 record high.
Remember that discounts can still be found even while the Nasdaq Composite breaks records. The "Magnificent Seven" do much of the heavy lifting, but long-term investors can find growth stock bargains.
Visa Visa is the first great growth stock you'll regret not adding to your portfolio, even while the Nasdaq soars. Visa and other industry leaders face difficulties. Recessions are financial stocks' "enemy". Cyclical financial companies expect economic growth to boost profits. Several money-based measures and prognostic indications suggest that the U.S. economy could enter a recession later this year, reducing consumer and company expenditure and transactions.
It's statistically sound to be bullish about the U.S. economy. Most booms since 1945 have lasted many years, whereas three-quarters of recessions have lasted less than a year. Visa is well-positioned to benefit from the U.S. and global economy's natural growth.
Visa dominates US credit card network buy volume. It has approximately 42% market share and was the only major payment processor to grow after the Great Recession. With a long runway, it can grow its payment infrastructure internationally. Visa has seen rapid payment growth in cross-border volume from Africa, Southeastern Asia, and the Middle East, where many people are unbanked.
Visa's exclusivity as a payment processor is its final piece. Lenders must set aside cash for loan delinquencies and losses during recessions. Visa's lack of lending gives it financial flexibility and little profit margin obstacles.
Lovesac Furniture firm Lovesac (NASDAQ: LOVE) is another fantastic growth stock you'll regret not buying with the Nasdaq in a nascent bull market. I did say "furniture company" and "growth stock". The furniture sector is slow-growing, cyclical, and relies on store foot traffic. This industry has been ripe for upheaval, and Lovesac has responded.
Furniture is Lovesac's main differentiator. About 90% of the company's net sales come from its "sactionals"—modular couches that can be configured dozens of ways to fit most living areas. The yarn used in sactionals is recycled plastic water bottles, making it eco-friendly. Sactionals have over 200 cover options to match any room's color or theme.
Besides functionality, optionality, and eco-friendliness, Lovesac's price points are competitive. Sectionals with wireless charging and surround sound cost more than standard sectionals. This is exactly what management wants. Lovesac's target client has a greater income and is less inclined to change their shopping habits during minor economic disruptions.
Another reason Lovesac succeeds is its omnichannel sales platform. Despite having storefronts in 40 states, the company uses its internet presence, popup showrooms, and brand-name partnerships to manage inventory and cut costs. The result is higher furniture stock margins.
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