4 Colossal Growth Stocks You’ll Regret Not Buying in the New Nasdaq Bull Market

Putting your money to work on Wall Street requires patience and perspective. Since this decade began, all three major stock indexes have vacillated between bear and bull markets in successive years, with these swings most pronounced in the growth stock-powered Nasdaq Composite (^IXIC 1.99%).

During the 2022 bear market, the Nasdaq Composite brought up the caboose with a 33% loss. But since closing this chapter, the Nasdaq has gained 51% and, as recently as last month, pushed to a new record-closing high above 16,400. This move confirms that the Nasdaq is firmly in a new, albeit young, bull market.

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What’s particularly interesting about this leading index is that it’s retraced nearly 4% off its all-time high, as of the closing bell on May 2. For long-term-minded investors with cash at the ready, it means growth stocks can still be found at a bargain.

What follows are four colossal growth stocks you’ll regret not buying in the new Nasdaq bull market.

Mastercard

The first sensational growth stock that’s begging to be bought in the early stages of the new Nasdaq bull market is payment-processing leader Mastercard (MA 0.56%).

The only real knock against Mastercard is that it’s a cyclical company. If the U.S. and global economy were to dip into a recession, consumer and enterprise spending would be expected to decline, which would have a negative effect on the fees Mastercard collects from merchants to process transactions. A couple of predictive indicators, including a historic decline in M2 money supply, suggest a growing likelihood of weakness to come in the U.S. economy.

On the other hand, history is very much on Mastercard’s side. Whereas most periods of economic expansion last for years, there hasn’t been a single U.S. recession since the end of World War II that endured longer than 18 months. Extended periods of growth allow Mastercard to consistently grow its sales by double digits year after year.

Though it’s a bit of a subtle point, Mastercard’s purposeful avoidance of lending is another reason for its ongoing success and sustained profit margin of more than 40%. Companies that lend have to set aside capital to cover possible credit delinquencies and loan losses that arise during recessions. Strictly focusing on payment processing means Mastercard avoids these pitfalls and bounces back from downturns faster than most lending institutions.

Additionally, Mastercard’s growth runway stretches for decades. Cross-border volume growth of 18% in the March-ended quarter speaks to just how large the opportunity is for it to continue expanding its payment infrastructure into underbanked regions, such as Africa, the Middle East, and Southeastern Asia.

While Mastercard might look a bit pricey at nearly 27 times forward-year earnings, this represents a 21% discount to its average trailing-five-year forward-earnings multiple.

Newmont

A second colossal growth stock that you’ll be kicking yourself for not buying in the early stages of the new Nasdaq bull market is gold-mining company Newmont (NEM -0.95%). Yes, you read that right… a gold stock that’s also a growth stock.

Before (pardon the necessary pun) digging into company specifics, it’s important to recognize the elephant in the room: The spot price of gold has surged to an all-time high in 2024.

The sizable rally in physical gold can be explained by a stubbornly high prevailing rate of inflation. In other words, people are looking for a place to park their cash (rather than letting it sit under the proverbial mattress) where it won’t lose value over time. For decades, gold has been an asset that skittish investors have flocked to during periods of high inflation and/or economic turbulence. If the spot price of gold remains near an all-time high, it should translate into higher profitability for gold miners across the board.

One of the clearest company-specific catalysts for Newmont is its $16.8 billion, all-share buyout of Australia’s Newcrest Mining, which closed in November. Newmont anticipates recognizing $500 million in cost synergies by the end of this year, as well as beefing up the combined company’s operating cash flow by $2 billion within two years of closing. Buying Newcrest further solidified Newmont’s already impressive gold and copper reserve profile.

To add to the above, Newmont’s size presents clear cost advantages. Newmont has 10 “Tier 1 assets,” which are mines producing at least 500,000 gold equivalent ounces per year, with an all-in sustaining cost in the lower half of the industry, and a mine life of greater than 10 years.

Newmont’s earnings per share (EPS) is forecast to double between 2023 and 2027 to around $3.20, which makes this lustrous stock all the more delectable for growth seekers.

Image source: Getty Images.

Baidu

The third exhilarating growth stock you’ll…