This has been a brutal year for stock investors. Concern over decades-high inflation, rising interest rates, and a wavering economy has put the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average into bear market territory.
While many investors went running amid this year's volatility, I used it as a buying opportunity. I invested in 24 new companies in 2022, a few of which are high-growth stocks that I feel hold abundant long-term opportunities.
Airbnb (ABNB -1.43%), Blackstone (BX -1.39%), and CoStar Group (CSGP -1.20%) are three growth stocks I purchased this year that I'm especially bullish on. Here's why I feel these surefire stocks are positioned to make a massive comeback in the next bull market.
1. Airbnb
Airbnb's share price is down 44% this year, but it's no fault of the company. In fact, Airbnb has had its best year yet. The vacation rental listing platform has benefited from the reopening of the economy and high travel demand both internationally and domestically.
Its third-quarter earnings beat analysts' estimates with a 25% increase in nightly bookings compared to last year. In turn, gross booking values (GBV), which is the income the company earns from booking fees, grew by 31% year over year. It reported net income of $1.2 billion for the quarter on top of its highest quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) on record.
Investors are concerned about of the possibility of a recession and what that could do to a travel-related company such as Airbnb. But the company remains untouched with no signs of travel demand slowing. Today investors can purchase Airbnb stock for around 41 times its earnings, the lowest price-to-earnings multiple (P/E) since the company went public in 2020.
I personally believe in the long-term vision of Airbnb and am loving the growth it's achieving right now despite the challenging macroeconomic environment.
2. Blackstone
Blackstone is one of the largest alternative asset management firms in the world. It manages roughly $950 billion in assets for wealthy individuals, hedge funds, and other investment firms, focusing on alternative investment such as real estate, life sciences, credit, and equity, among several others. Investor interest in alternative assets skyrocketed over the past year as the stock markets swooned amid high inflation and rising interest rates.
The company saw a record i nflow of fundsin 2022 with the assets under management growing by 30% since last year. The revenue it earns for managing its assets for its clients, called fee-related earnings, rose by 51% since last year.
The stock has taken quite a hit as of late. Investor concern over a real estate market correction has caused a growing number of investors in Blackstone's private real estate investment trust, BREIT, to request withdrawals from the real estate investment trust (REIT). The company is limiting withdrawals to stop the panic from spreading, but its share price has taken a hit instead. The stock is trading near its 52-week low and is paying around a 6% dividend yield.
This high-growth stock has delivered a 26% annualized return during the past 10 years, a trend I see continuing over the next 10. Blackstone is well versed in distressed opportunistic investing. The company was one of the largest investors in real estate in the years after the Great Recession, profiting handsomely from discounted pricing. It's also flush with money, putting it in a strong liquidity and low-risk position even if the market were to turn.
3. CoStar Group
CoStar Group is one of the few stocks that remarkably isn't down this year. The company, which sells real estate data and operates dozens of the largest and most popular real estate listing websites for commercial and residential housing, has seen tremendous growth in 2022. High demand for real estate in the years after the worst of the pandemic passed helped its revenue grow to record levels.
CoStar Group's earnings this year have consistently beaten analysts' estimates with EBITDA, net income, and earnings per share growing in the double digits year over year. In response, its share price rose about 3% this year. Apartments.com, one of its largest and most popular websites, is driving much of its growth today. The company has been ramping up its marketing efforts and it's clearly working. Its net bookings for the nine months ended 2022 have already exceeded all of 2021.
Its track record for delivering growth is hard to overlook when it comes to choosing high-growth stocks. It has delivered a 21% annualized return over the past two decades. Plus, CoStar Group has more than $4 billion in cash and cash equivalents, giving it plenty of buying power to acquire more companies in the coming years.
