2 Growth Stocks to Buy Before a Big Rally
Growth stocks have taken a beating after the Federal Reserve announced in late 2021 that it would start raising interest rates. Rising rates are bad for growth stocks because future cash flows are discounted at higher rates. Lately, it's not rare to find stocks down 50%, 60%, 70%, or even 95% off their highs. Among the broad sell-off are excellent businesses.
For instance, Roblox (NYSE: RBLX) and Chegg (NYSE: CHGG) are two solid companies down 75% and 84%, respectively, off their highs. Long-term investors who can stomach the short-term volatility can add these two stocks to their portfolios before a big rally sends them higher. Here's why each deserves a spot in your portfolio.
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Source Fool.com
