While the economy is going through one of its periodic pullbacks, smart investors are preparing for the next move higher. That can come from investing in quality companies that lead their industry.
Or it can come from investing in growth companies that are now trading at valuations that no longer reflect any growth. Most investors will fare well starting to buy names that offer a mix of the two.
One top trend is the rise of data, and storing that data on the cloud. Many big-name tech companies are well-known, but smaller players off the prospect of growth. One such company is data warehousing company Snowflake (SNOW).
Shares of this growth name are, down two-thirds from their peak. The company is still unprofitable, but revenue is still up over 101 percent in the past year, a strong growth trend that will be rewarded when the market is more upbeat on growth stocks.
Action to take: Shares are a long way from paying a dividend, but this high-growth, cash-rich company can likely continue to grow its business, and shares will move higher in time as a result.
For traders, the September $180 calls, last going for about $9.50, offer mid-double-digit returns or higher on a rebound. One such move higher is likely, given how shares have been so highly beaten down in the past few months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.