The 7 Best Buying Opportunities in the Stock Market Right Now

Look no further than a market downturn when looking for the best buying opportunities. Investors pointing to a historical chart of S&P500 and to locate the best buying opportunities, it is almost guaranteed that most of the best buying opportunities will come during a bad market downturn or recession. So historically, now is an excellent opportunity to buy oversold stocks as the downturn deepens.

The recently released inflation data has been far from satisfactory, which likely means another outsized rate hike by the Federal Reserve. Of course, there’s definitely some risk involved in buying stocks these days. That’s because stocks could still have plenty of room to fall lower. However, if you have a long-term perspective, don’t let this near-term turmoil stop you from profiting from grossly undervalued stocks.

For example, I believe most technology stocks represent a great buying opportunity. Because this downturn has hit this industry particularly hard. Tech stocks are very risky during economic downturns, but they’re just as rewarding when the economy is expanding. As such, I believe most of the following top seven buying opportunities are in tech stocks right now.

NFLX Netflix $240.86
META meta platforms $132.80
PYPL PayPal Stocks $85.29
ZM zoom video $78.23
FVRR Fiverr $28.72
WIX Wix.com $75.88
JOB Spotify $88.04

Netflix (NFLX)

The Netflix logo on a tablet with earbuds and a bowl of popcorn nearby.

Source: Riccosta / Shutterstock.com

This year was a disaster for Netflix (NASDAQ:NFLX) after the previous weak earnings report sent the stock tumbling. The stock is currently down nearly 64% from its 2021 peak, and could fall even further if the platform’s user base declines to more sustainable levels.

Netflix has gained millions of subscribers during the coronavirus pandemic, with popular hits such as Squid Game. As such, I believe the recent drop in subscribers is not unnatural and could be expected as the company’s subscriber count returns to more normal levels.

Netflix, in particular, has managed to maintain its earnings despite declining subscriber numbers. The company’s revenue growth has certainly slowed, but it continues to grow despite broader economic headwinds. The company remains profitable and a strongly recognized brand.

Unfortunately, the only sluggish metric is the company’s stock price. NFLX stock is now valued at the same price it was trading at early 2018. Back then, the company had 50% fewer subscribers and revenue. As such, I believe Netflix stock represents one of the best buying opportunities right now.

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Metaplatforms (META)

Meta Written On The Googles - Man wearing virtual reality glasses in a metaverse.  FTC investigates META.

Source: Aleem Zahid Khan / Shutterstock.com

Facebook’s transition to meta platforms (NASDAQ:META) has cost the platform dearly as the metaverse’s failure to live up to expectations has been seen across a number of key markets, including crypto. Virtual worlds attributed to the metaverse typically involve digital currencies for transactions and non-fungible tokens (or NFTs) for purchase. Understandably, people are no longer interested in such virtual worlds, especially since these asset classes are depreciating.

However, contrarian investors will still find META stock to be very valuable. The sell-off that began earlier this year on Meta Platforms’ poor earnings report dragged it 65% from its peak to levels last seen in late 2016. This is undoubtedly oversold territory, especially given the company’s great fundamentals and profitability.

Facebook remains Meta Platforms’ cash cow and continues to rake in profits. Despite the recent drop in META stock, this company currently has a price-to-earnings ratio of just over 11x. I think that’s a steal for a tech company that owns one of the largest social media platforms.

Of course, there are still concerns about Facebook’s declining monthly active user base. However, as I said at Netflix, the platform could be cooling off from the significant boost it’s received from the pandemic. Facebook is still in strong shape compared to its pre-pandemic user base and profitability metrics. The stock price is not.

PayPal Holdings (PYPL)

PayPal logo and front of headquarters

PayPal Stocks (NASDAQ:PYPL) was also hit hard by the tech sell-off this year. However, I believe that PayPal is likely to benefit from the burgeoning gig economy in the long run, as it is one of the most widely used platforms for domestic and international payments.

Although PayPal’s net income turned negative in the second quarter of this year, the company should bounce back on its steady revenue growth. Still, I believe there is near-term risk for PYPL stock as PayPal’s total number of active users has fallen to 429 million over the past two quarters. As with Facebook and Netflix, the company’s user base could continue to fall, triggering another sell-off in the stock.

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Still, I think the downside risk on this company is relatively small given PayPal’s long-term potential. This tech stock is still on solid ground and is a steal, in my opinion.

Zoom video (ZM)

Zoom (ZM) logo on a building

Source: Michael Vi / Shutterstock.com

zoom video (NASDAQ:ZM) boomed during the pandemic, gaining almost 800% in less than a year. However, as people returned to their offices and schools with the rollout of vaccines, the stock lost all of its gains in the years that followed. ZM stock is now worth almost 25% less than it was in the summer of 2019.

Even though the pandemic isn’t that bad anymore, universities and companies are still using the platform extensively. Remote work is becoming increasingly popular. As such, Zoom is uniquely positioned to capitalize on this secular growth trend, as the platform holds roughly 50% of the video conferencing market share.

Additionally, Zoom has maintained its earnings and is net positive at the time of writing. As such, I believe ZM stock is one of the top buying opportunities out there right now due to the rise in popularity of remote work.

Fiverr International (FVRR)

Fiverr website displayed on a mobile phone screen.

Source: Temitiman / Shutterstock.com

Fiverr (NYSE:FVRR) is an online marketplace platform for freelancers. I believe Fiverr is one of the best stocks to buy right now, as more companies shift their workforce to include more gig workers. The expanding gig economy will benefit the company in the long term. This is evidenced by the company’s double-digit annual growth rate over the past decade.

Additionally, FVRR stock is down more than 91% since its February 2021 peak. Given the long-term prospects of the gig economy, I think these are favorable numbers. While there are significant short-term risks due to the current economic climate, I believe the future is bright for Fiverr.

As such, I am listing FVRR stock as one of the top buying opportunities right now, as it offers investors a unique opportunity to capitalize on the rapidly changing work culture.

Wix.com (WIX)

WIX sign on office building in Tel Aviv Hi-Tech Zone.  WIX logo.

Source: MagioreStock / Shutterstock.com

Like all other stocks in this article, Wix.com (NASDAQ:WIX) was also devastated this year due to the tech sell-off. WIX stock is down nearly 80% from its peak, which I think offers investors a great investment opportunity.

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What is unique about Wix.com is that it makes building websites much easier than other open source counterparts. Wix.com allows its users to create their own websites using its cloud-based web development services. Of course, web development professionals are unlikely to use Wix. But with the rise of entrepreneurship, more and more people will need websites in the future.

Things aren’t so rosy for Wix right now, with quarterly losses of $111 million. However, if management steers things in the right direction, WIX stock could grow profitably for years to come. Granted, the risk is significant here, and I would recommend some of the other stocks on this list more.

Spotify (SPOT)

The Spotify logo (SPOT) is on the screen of a smartphone with headphones connected.

Source: Kaspars Grinvalds / Shutterstock.com

Spotify (NYSE:JOB) continues to lead the audio streaming industry with more than 433 million monthly active users on its platform. Unlike most other media service companies, Spotify’s active user base continues to grow steadily, even factoring in last year’s pandemic-related boom. As podcasts continue to grow in popularity, Spotify has a lot more room to grow in the years to come.

The company’s revenue growth has slowed. A key driver of this is currency conversion as this company is based in Sweden. Therefore, until the US dollar and euro exchange rates improve, this could put a company in trouble in the short term.

Still, Spotify’s results have been solid. The company’s quarterly losses are not significant and should improve as the platform adds more paying users and additional revenue streams. As such, at $86 per share, I find Spotify grossly undervalued relative to its future growth prospects.

At the time of publication, Omor Ibne Ehsan held (neither directly nor indirectly) positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is also an active contributor to a variety of financial and crypto websites. He has a strong background in business and finance and is a proponent of blockchain technology. You can follow him on LinkedIn.

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