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2 Top Growth Stocks to Buy Right Now Without Hesitation

Motley Fool - Fri Oct 20, 2023

Many investors love growth stocks for their potential to supercharge a portfolio -- and these shares often do this particularly well during times of market strength. We're not in a bull market today, but it's not too early to prepare for those better days. After venturing into bear territory last year, all three major indexes have rallied this year -- and the stock market has shown us over time that bear markets always lead to bull markets.

The bear market weighed on growth stocks across industries, leaving plenty of these players trading for a song. So now is a great time to find these bargains and stock up. They could offer your portfolio some extra punch in the months and years to come. Let's check out two top growth stocks to buy right now without hesitation.

Chewy

If you're a pet parent, you may know Chewy(NYSE: CHWY) well. The e-commerce company sells everything you need for your furry friend, from food to treats and even prescription medicine. Today's tough economic environment isn't easy for retailers, but Chewy has still managed to hold on to its most loyal customers -- and they're spending more and more on the platform.

Chewy actually makes it easy to keep spending with its Autoship program, which automatically sends your favorite products right to your door. Autoship sales make up more than 75% of the company's total sales, so returning customers clearly are a key part of the company's revenue picture.

Chewy reached a major milestone in recent times, achieving profitability last year. And the company has another important catalyst ahead -- its first expansion into an international market.

This pet supply specialist chose Canada because it sees potential for market share and profitability similar to that of the U.S. If those predictions are right, the expansion could be a huge step for the retailer. Chewy recently launched its Canadian website, featuring food, treats, and supplies as well as the Autoship service. Another positive point: The structure of Chewy's current platform means its expansion doesn't require a huge initial investment.

Today, Chewy shares trade for 29 times forward earnings estimates, which looks like a bargain considering the company's growth in a tough economic environment and future growth prospects -- thanks to an already strong U.S. business and potential internationally.

Caribou Biosciences

Caribou Biosciences(NASDAQ: CRBU) works in the high-growth area of CRISPR gene editing, and though it isn't the closest to market among rivals, Caribou's technology may make it worth the wait.

CRISPR involves cutting DNA at a certain location to allow a natural repair process to take place. This "fixes" faulty genes responsible for a particular disease. One exciting thing about CRISPR gene editing is it may result in functional cures for serious illnesses. This could be a game changer for patients -- and companies like Caribou.

What sets Caribou apart in the world of CRISPR is its ability to make more than one edit to the genome and its delivery process that improves the precision of edits. For example, Caribou's most advanced candidate -- one for relapsed or refractory B cell non-Hodgkin lymphoma -- includes three edits. That candidate is only in phase 1 trials, but regulators have granted it regenerative advanced medicine therapy and fast track designations meant to expedite the development process.

And Caribou has a big supporter from the pharma world. Pfizer recently invested $25 million in Caribou's stock, a clear vote of confidence in this innovative company.

Meanwhile, the stock, which soared after the Pfizer investment, has since lost more than 30%. And it looks dirt cheap at today's levels considering the progress of Caribou's programs and the promise of its gene-editing technique.

This stock isn't without risk -- after all, Caribou doesn't yet have products on the market, and failure can happen during any stage of development. But along with risk comes the possibility for great rewards, so if you're an aggressive investor, Caribou is a growth player to snap up without hesitation right now.

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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caribou Biosciences, Chewy, and Pfizer. The Motley Fool has a disclosure policy.

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