2 Stocks I'm Buying When Markets Pull Back
Here are 2 stocks I’m prepared to pull the trigger on as soon as the market pulls back.
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2024-02-03 11:29

It is always a conundrum for investors: it’s nice to see the markets go up but you want to buy when prices are lower. Remember not to wait too long because sometimes those lower prices never come back. Ask anyone who has been waiting to get back into stocks like NVIDIA ($822.79|4.00%) or Meta ($502.3|2.48%).

Now that the markets are at all-time highs, I usually don’t buy too many assets. Now, I sit on them and wait as I accumulate funds to make purchases when the market does pull back and reset.

I keep pounding the table on Uber and I will continue to until it is potentially a trillion-dollar company. Is that going to happen this year? Probably not. In fact, I’ll say definitely not but the potential is there. Uber’s business continues to scale higher. Last quarter it reported a staggering 25% growth from the same quarter in 2022. Although the stock has climbed higher this year, it is still trading at a price-to-sales multiple of less than 4 which is low for its historical average. That’s what happens when the growth outperforms the stock price. Remember, Uber is now profitable and the ace up its sleeve is the rapidly growing ad-revenue business which management believes should hit $1 billion this year. Inclusion into the S&P 500 should stabilize the floor for Uber, but the ceiling remains nearly unlimited in the years to come.

Celsius Holdings Inc (NASDAQ: CELH)
Part of me worries that the whole Celsius thing is a bubble. How can an energy drink be so popular? Then I look at a chart for Monster Beverage (NASDAQ: MNST) and I remember just how popular these beverages can be. The company has put up triple-digit sales growth in the past two years and continues to gain valuable shelf space in stores like Costco (NASDAQ: COST) and Walmart ($58.76|0.26%). On top of that, a recent expansion into Canada with more markets on deck is an intriguing catalyst for further growth. As Celsius continues to expand its operating margins will likely take a hit at first as the company is forced to scale higher. But at its current valuation, Celsius does seem like a high risk/reward play for the next few years. I like that the drink has a cult following and is even catching the eye of mainstream media. I realize that triple-digit revenue growth is not sustainable forever, but as the company continues its hyper-growth phase it’s not out of the realm of possibility. I’ll be curious to see which other markets Celsius enters this year, but I think I’ve seen enough. Celsius is the type of company where I will initiate a small position, rather than a full one to monitor how things go. My conviction in Uber is a lot stronger than Celsius, but I’ll be looking to start positions in both stocks when the markets cool off.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

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Published On
2024-02-03 11:29

About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.

Analyst Ratings
Target Price$48.82
# of Analysts38
Last updated2020-11-27

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