The current year has not been a good year for Nasdaq investors. The index is down 26.5% year to date compared to declines of 14.34% for the Dow Jones and 18.7% for the S&P 500. Growth stocks have been most impacted due to steep valuations surrounding these companies.
The Nasdaq Composite index provides you exposure to several tech stocks that may experience a selloff when macroeconomic conditions deteriorate. But the market crash also offers investors to buy quality stocks at a discount.
Here are two stocks that are great long-term picks for investors right now.
Alphabet
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) is one of the most dominant companies in the world right now. It owns Google, YouTube, Android, Gmail, and a bunch of other products and services that are used by billions across the world.
The company recently announced a 20-for-1 stock split. This is only the second time in its history that Alphabet has confirmed a split on the stock. The split will take place aftermarket hours on July 15.
Historically, the days leading up to a split (across good stocks) see share prices gain momentum. It’s been the same with Alphabet. The stock has risen over 9% in July. That said, Alphabet stock is still down by 17.68% in 2022 at the time of writing.
Alphabet stock is trading at $2,387.07. At this level, one Alphabet share will be available at $120 levels post the split, making it affordable to several retail investors. If your broker lets you own fractional shares, Alphabet stock is a top buy. If not, you can wait until July 18 to get in.
The average target price for the stock is $3,047 ($152 post-split), which is a potential upside of over 27% from current levels. Alphabet is one stock to buy and hold for the ages due to its wide economic moat and market leadership across verticals such as digital advertising, public cloud, and online streaming.
Starbucks
There are plenty of reasons to not buy Starbucks (NASDAQ: SBUX). The stock is down 32% this year. The company has suspended stock buybacks. Consumer behaviour is shifting from an in-store experience to a more functional one. Starbucks is also on the lookout for a new CEO while several of its stores in China are shut because of the resurgence of the pandemic.
However, Starbucks is no stranger to changes in the market or shifts in consumer behaviour. The company has always evolved to meet market needs and thrived. If anything, this drop in share price is a buying opportunity for bargain hunters.
Starbucks founder Howard Schultz has stepped back into the CEO role. He understands that the company needs to adapt to the new normal and has already started instituting changes. He has stated that the company is hunting for a CEO who can lead Starbucks into a digital world.
Schultz is the one who has temporarily halted stock buybacks because he wants to reinvest the money in the business, including online ordering and adding drive-thru locations. The company still has a lot of growth potential, especially internationally.
Starbucks is trading at $79.28 and the average target price for the stock is $94.4, which is potential upside of just over 19%.
