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The Unstoppable Rise: 3 Stocks to Soar in a Market Storm

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It’s a tale as old as time – investors dreading the looming presence of a market sell-off. While the current market euphoria might seem endless, the wise know to anticipate the storm and prepare accordingly.

When chaos reigns and stocks tumble, that’s the time to strike. Swift decisions fueled by prior research replace the need for hurried analysis. Here are three stocks poised to weather any market tempest, standing tall amidst the storm.

Nvidia: The Titan of Growth

Among the pantheon of market titans, Nvidia (NASDAQ: NVDA) stands in a league of its own. Ruling the realm of graphics processing units (GPUs) tailor-made for artificial intelligence (AI) workloads, Nvidia’s meteoric rise over the past year has left many in awe.

The numbers speak volumes – in the fourth quarter of fiscal year 2024 (ending Jan. 28), Nvidia’s revenue surged a stupefying 265% year over year to $22.1 billion. Yet, the price is steep, currently trading at around 33 times forward earnings. However, should a market storm hit, the premium might just lose its luster, presenting a golden opportunity for latecomers like me to finally seize the day.

Despite potential short-term squalls, Nvidia sails in a sea of opportunity, with the global GPU market set to crest at $400 billion by 2032. So while a sell-off might rock Nvidia’s boat, the long-term voyage looks promising.

CrowdStrike: The Cybersecurity Crusader

CrowdStrike (NASDAQ: CRWD) emerges as not just a cybersecurity stalwart but a market darling. The resultant adulation has propelled CrowdStrike’s stock to stratospheric heights, currently trading at 27 times sales.

If wishes were profits, CrowdStrike would be king, trading at a princely 90 times earnings with a 30% profit margin. A staggering figure, eclipsing even Nvidia in this hypothetical scenario.

With a vast market potential estimated to reach $225 billion by 2028, CrowdStrike’s yearly recurring revenue surged by 35% to $3.15 billion in Q3 FY 2024 (ending Oct. 31). The path ahead is long, with plenty of untrodden ground before market saturation looms.

CrowdStrike, a paragon of business acumen, holds my admiration. However, at current valuations, it’s a bit rich for my taste. I’ll bide my time and wait for the storm clouds to gather before plunging in.

Costco: The Steady Sailor

In the grand tapestry of investments, Costco (NASDAQ: COST) stands as a testament to stability amidst the tumult. A retail giant with a proven track record of outperforming the market, Costco’s steady hand has guided many to prosperity.

While Costco may not dazzle with explosive growth figures, its consistent earnings expansion above the 10% mark affirms its mettle. Yet, at 51 times trailing earnings and 48 times forward earnings, the valuation soars beyond reason, far from its usual moorings.

Should a market squall descend upon us, and Costco stocks waver, I shall be at the ready, eager to bolster my portfolio. Until then, prudence dictates patience, for the current price is too steep to justify the plunge.

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Keithen Drury is invested in Costco Wholesale and CrowdStrike. The Motley Fool has vested interests in and endorses Costco Wholesale, CrowdStrike, and Nvidia. The Motley Fool follows a strict disclosure policy.

The viewpoints and declarations articulated here are reflections and opinions of the author and may not necessarily align with those of Nasdaq, Inc.

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