Next (NXT), Experian (EXPN), Auto Trader (AUTO):3 growth stocks to buy

Highlights 

• The volatile market creates fear among many of the investors, while there are some who see this as an opportunity to invest in quality growth-orientated stocks for the long term.

• The recent stock market correction offers a great chance to invest in companies with robust future prospects who, because of the market correction, tend to trade lower.

 

The UK stock market didn’t have a great start to 2022. Rising inflation led to an interest rate hike, and geopolitical tensions between Russia-Ukraine resulted in some volatile trading sessions and kept investors worried about their investment. The market has been particularly unkind to the growth-orientated stocks like Next Plc, Experian Plc, and Auto Trader Group that have corrected much more than any other stocks.

The volatile market creates fear among many of the investors, while some others see this as an opportunity to invest in quality growth-orientated stocks for the long term. The recent stock market correction offers a good opportunity to invest in companies with robust future prospects but is currently trading lower due to market correction.

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Let us look at FTSE100 listed stocks that could be a bargain buy and can be held on for long term build wealth:

Next Plc (LON: NXT)

The retail chain operator sells clothing, footwear, and other accessories through its stores and online platform. The company reported excellent business with higher sales in the eight weeks to 25 December 2021.

Its total full-price sale was up by 20% during the period. Still, the company’s stock witnessed a price correction and is down by over 15% year-to-date. The recent price correction could be probably due to rising inflation in the country, leading to a cut back on non-essential spending. Investors will have a close look at the next quarter’s business update to determine the adverse impact of inflation. If the company is able to retain its sales figures in upcoming quarters, then it could get reflected on the stock price.

Next Plc currently trades at GBX 6,860, up by 0.15% on 21 February 2022 at 10:45 am GMT+1, with a market cap of £9,060 million.

Experian Plc (LON: EXPN)

The company provides analytical and decision-making tools to other businesses, which helps manage the lending risk. The tools provided by the company helps to manage customers and minimise the risk of fraud.

The company reported a 15% growth in total revenue at constant exchange rates with contributions from all regions of operations in the three months to 31 December 2021. However, the recent global stock market correction has been hard-hitting for the technology companies, and Experian witnessed a stock price correction of 21.9% year-to-date. The company continues to hold solid fundamentals and long-term growth prospects.

Experian Plc currently trades at GBX 2,804, down by 0.85% on 21 February 2022 at 10:45 am GMT+1, with a market cap of £26,077 million.

Auto Trader Group Plc (LSE: AUTO)

The digital automotive marketplace provides various services related to the automobile sector in the UK and Ireland. The company dominates the digital marketplace and has witnessed a surge in consumer traffic on its website amid higher demand for used vehicles due to a shortage of semiconductors, which led to delays in the delivery of new cars.

The company achieved its highest-ever revenue and profits for the six months ended 30 September 2021. Its revenue was up by 82% at £215.4 million, while website visits increased by 20% to 68.7 million. Fear amongst investors that lower discretionary spending might impact the company’s business led to a stock price correction of 15% year-to-date.

Auto Trader Group Plc currently trades at GBX 628.40, down by 0.73% on 21 February 2022 at 10:45 am GMT+1, with a market cap of £5,985 million.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.