For a new bull market to begin, the Nasdaq Composite index must rise at least 20% above its low set on Dec. 28, 2022. The index is currently less than 3% away from reaching that mark. 

No hype or exaggeration is required to realize that a new Nasdaq bull market is nearly here. Here are three stocks to buy sooner rather than later.

1. Axsome Therapeutics

Even without good news for the Nasdaq, I think that Axsome Therapeutics (AXSM -0.04%) ranks as one of the best biotech stocks to buy in 2023. The stock is even more attractively valued now than it was earlier this year with shares falling more than 20%.

Axsome's launch of Auvelity in treating major depressive disorder is off to a solid start. Look for momentum to pick up in the coming quarters. Sales for sleep disorder drug Sunosi, which Axsome acquired from Jazz Pharmaceuticals, should also continue rising with Pharmanovia marketing the drug in Europe and other international markets.

The biotech company has several potential catalysts on the way. It should report results from a late-stage study of AXS-12 in treating narcolepsy within the next three months. Axsome also expects to file for U.S. approvals of AXS-07 in treating migraine and AXS-14 in treating fibromyalgia this year.

Unlike some small drugmakers that haven't had products on the market very long, Axsome doesn't have to worry about raising capital through dilution-causing stock offerings. The company believes that its current cash position combined with its term loan facility will fund operations until it's able to generate positive cash flow. 

2. MercadoLibre

MercadoLibre (MELI -0.98%) is already in a strong bull market of its own. The Latin American fintech stock has skyrocketed more than 50% so far this year. Despite this impressive gain, I think that MercadoLibre is still a bargain.

You wouldn't know there's any economic uncertainty by looking at MercadoLibre's performance in the fourth quarter of 2022. The company reported Q4 net revenue growth of 56.5% year over year on a constant-currency basis. Total payment volume for its e-commerce platform soared 80% year over year to $36 billion on a constant-currency basis.

MercadoLibre is well positioned to profit from the ongoing shift to online retail in Latin America. That shift is evident considering the company's total payment volume has grown by more than 4x over the last three years.

Even more promising, though, are MercadoLibre's fintech opportunities. The company's fintech revenue has increased by nearly 5x over the last three years. Its market share in small to medium-sized business financial services, though, remains low, giving MercadoLibre plenty of room to grow.

3. MongoDB

MongoDB (MDB -0.25%) stock has tracked closely with the Nasdaq Composite index performance so far in 2023. But shares of the cloud database provider were hit much harder last year than the index was. As a result, MongoDB has tremendous upside potential if and when a new Nasdaq bull market materializes.

The macroeconomic climate has taken a toll on MongoDB. The company's growth slowed as customers reduced their consumption of database services. MongoDB has reduced its hiring plans to align with the market realities.

Despite the challenges, MongoDB's business continues to perform well. CEO Dev Ittycheria noted in the Q4 conference call, "Unlike many of our peers, we have not seen the macro environment impact our ability to win new business." He also said that customer retention rates remain strong.

When a strong new Nasdaq bull market begins, it's reasonable to expect that MongoDB will return to the strong growth investors have become accustomed to. The company's database platform should also continue to capture market share from traditional relational database vendors over the long term.