It can be unnerving to invest in the stock market right now. With the S&P 500 down 18% this year, it can seem like a bad time to buy stocks. But nothing could be further from the truth.
While there are undoubtedly some weak companies out there, there are also plenty of solid businesses that are going to continue to grow and get bigger over the years. Loading up on their shares during a downturn can set you up for some significant returns later on.
A couple of stocks that are unstoppable and that growth-oriented investors may want to consider buying today include UnitedHealth Group (UNH 0.84%) and Nvidia (NVDA +2.59%).
NYSE: UNH
Key Data Points
1. UnitedHealth
UnitedHealth is the largest healthcare company in the world, and it's always looking to get bigger. This year, the company announced plans to acquire in-home healthcare company LHC Group for $5.4 billion.
It also wanted to spend $8 billion to acquire analytics company Change Healthcare. However, regulators sued to block the deal out of concerns that UnitedHealth could become too big and powerful (they feared the acquisition would allow UnitedHealth to potentially see data from its rivals). UnitedHealth has since agreed to sell the claims editing business that Change Healthcare operates for $2.2 billion, which could make the acquisition more tenable for the Department of Justice.
Regardless of how that plays out, UnitedHealth isn't going to stop growing. Over the past three years, the company has continued to find ways to expand its business, growing from $225 billion in sales in 2018 to more than $285 billion this past year. And as UnitedHealth pursues more acquisitions, its top line will inevitably get larger. A key reason investors should be optimistic about the company's future: the amount of cash the UnitedHealth generates.
UNH Free Cash Flow (Quarterly) data by YCharts.
Over the past three years, the company has consistently brought in more than $2 billion in quarterly free cash flow. And with dividend payments costing just $1.3 billion, UnitedHealth is in an excellent position to grow and expand further without needing to dilute its shareholders through stock offerings while still being an attractive option for income investors.
NASDAQ: NVDA
Key Data Points
2. Nvidia
Another cash-rich business that makes for a solid growth buy is chipmaker Nvidia. Its graphics cards are frequently rated as the best in the world and the growing digitalization of businesses is only going to lead to more demand for its products.
If you're bullish on the metaverse or crypto, Nvidia has you covered there, too. It's developing an omniverse platform that Nvidia calls the "plumbing" that metaverses can be built on. Meanwhile, the growing popularity of digital currencies can also be a catalyst for long-term growth as Nvidia's graphics cards are frequently top choices for people who mine cryptocurrency.
Although it doesn't generate as much free cash as UnitedHealth, Nvidia still brings in billions. Plus, it has a phenomenal growth rate that has been comfortably above 30% for the past few years:
NVDA Revenue (Quarterly YoY Growth) data by YCharts.
The global chip shortage is still a problem and preventing Nvidia from generating even better numbers than it is right now.
Although shares of the company are down more than 40% as investors have been turning away from growth stocks, especially high-priced ones like Nvidia (it trades at 45 times its earnings), the growth potential it has could make its share price today look like a bargain a few years from now.
