A Bull Market Is Coming. 3 Hypergrowth Stocks That Are Worth the Risk
Hypergrowth stocks have been hit hard by the stock market sell-off. Many early-stage companies don't generate profits or positive free cash flow. Rather, they are valued based on their future cash flows.
Inflation, of which there's been a lot lately, effectively dilutes the value of the future cash flows. Therefore, it's unsurprising that many investors have gravitated toward established businesses that are doing well right now and can continue to achieve results.
Despite these headwinds, there's no denying the potential for companies with a multidecade runway. And while these investments should be approached with caution, the valuation of many growth stocks has gotten much more attractive as equity prices have fallen. Rocket Lab USA (NASDAQ: RKLB), ChargePoint Holdings (NYSE: CHPT), and Bentley Systems (NASDAQ: BSY) are three stocks that are worth the risk. Here's why.
Source Fool.com
