The recent stock market sell-off has left many stocks trading at discounted prices. This presents a buying opportunity for long-term investors. Three growth stocks that currently look like bargains are Alphabet, Taiwan Semiconductor, and Adobe.
Alphabet, the parent company of Google, is trading at 17.5 times forward earnings. This is near historical lows for the company. Alphabet has faced legal challenges recently, including rulings that its digital ad network and search engine are illegal monopolies.
However, the final outcomes of these rulings are years away. Alphabet continues to dominate the advertising space with its Google family of products. Even if a breakup occurs, the resulting entities will likely be highly valuable.
This makes Alphabet a solid long-term investment. Adobe once had a premium valuation among big tech companies. But concerns over competition from generative AI platforms have weighed on its stock.
Despite this, Adobe has maintained steady growth of around 10%. It has also introduced its own AI models.
Current growth stock opportunities
The company’s current valuation is much lower than in the past decade. This positions it more as a value stock than a growth stock. This transition period offers a great opportunity to invest in Adobe for the long term.
Taiwan Semiconductor is a critical supplier in the global tech sector. It functions as a chip fabricator for many leading technology companies. Investors worry about the impact of tariffs on the company.
However, Taiwan Semiconductor is proactively investing $100 billion to expand its U.S. manufacturing footprint. This will help mitigate some of these concerns. Even with such strategic moves, the stock trades at a significant discount, at 17 times forward earnings.
Taiwan Semiconductor’s long-term growth trajectory remains strong. This makes its current valuation an attractive entry point for investors. In conclusion, the recent market volatility has created compelling investment opportunities.
Alphabet, Adobe, and Taiwan Semiconductor are three companies that present strong long-term growth prospects at discounted valuations. Long-term investors may want to consider adding these stocks to their portfolios.
