US growth equities have faced some significant selling pressure recently. However, I think investors have been throwing the baby out with the bathwater in some cases.
As a result, some exciting opportunities have emerged, including the two firms outlined below. Considering their growth potential and current valuations, I reckon these are some of the best shares to buy right now.
Market niche
One of the most exciting companies to emerge over the past couple of years has been the Trade Desk (NASDAQ: TTD). This organisation helps online advertisers manage their content and advertising campaigns.
While it is facing stiff competition from the likes of Amazon and Google, the business has carved out a niche in the market. This has enabled the corporation to grow earnings at a compound annual rate of around 80% since 2015.
However, I think it is unlikely this sort of growth rate is sustainable. Nevertheless, as the global online advertising market continues to expand, I also think the business has tremendous potential over the next few years.
Shares in the company have fallen around 30% since the end of 2021. I can see why some investors might reduce their exposure to the business as competition in the online advertising market increases. Privacy issues could also be a concern for the group.
Nevertheless, I would buy the stock for my portfolio following this decline as a long-term growth play. The online advertising market is strong and it is only going to expand in the years ahead. This is why I think the company is one of the best shares to buy right now.
Shares to buy for economic growth
It has never been easier to start a small business. Entrepreneurs have a range of tools available to help them sell products and services online. The companies that help facilitate these transactions could be some of the best shares to buy right now as the economic recovery gains traction.
Etsy (NASDAQ: ETSY) is one of the leading players in the space. Since 2015, its sales have risen 10-fold as consumers have flocked to its online marketplace, which still has vast potential.
Despite revenues of $2.3bn, the firm is still tiny in comparison to the likes of Amazon, which is over 100 times bigger.
That said, I cannot take the company’s growth for granted. It is facing increasing competition, and some users are moving away from the platform due to its high commission costs. These headwinds could hold back growth.
Still, with the stock having fallen 55% from its 2021 high, I think the shares are beginning to offer growth at a reasonable price. Indeed, the stock is currently selling at a 2022 forward price-to-earnings (P/E) multiple of just 38. That is below the firm’s five-year average of around 75.
With further growth on the horizon, I believe this multiple undervalues the company and its potential.
Is this little-known company the next ‘Monster’ IPO?
Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.
Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Alphabet (A shares), Amazon, Etsy, and The Trade Desk. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
