When it comes to investing, many people aim to choose stocks that outperform the market indexes. One strategy to achieve this goal is to invest in growth stocks that are currently trading at a discount. Here are two such growth stocks that have recently experienced a pullback but have strong potential for above-average returns.
1. Advanced Micro Devices (AMD)
AMD’s stock price recently dropped due to concerns about potential export controls on products using American technology. Despite this short-term setback, the company is well-positioned to benefit from the increasing demand for advanced chips used in data centers and artificial intelligence (AI) applications. With analysts predicting a 43% annualized earnings growth for AMD, the stock is expected to deliver strong returns in the long run.
2. HubSpot (HUBS)
HubSpot’s stock price declined after acquisition talks with Alphabet fell through. However, this presents a buying opportunity for investors interested in a leading customer management software company with solid growth prospects. HubSpot’s revenue growth remains strong, and the company is well-positioned to capitalize on the growing customer relationship management software market.
Overall, both AMD and HubSpot have the potential to deliver market-beating returns over the next few years. Investors looking to capitalize on the recent pullback in these stocks may find it advantageous to consider adding them to their portfolios.