10 Growth Stocks That Are Still Going Strong

2020 and 2021 were banner years for growth stocks as many of them, especially in the tech sector, benefited from pandemic-related tailwinds, especially in areas like e-commerce, video streaming, and cloud computing.

However, 2022 has brought a reckoning for high-growth stocks, with previously inflated valuations collapsing. Almost any stock that is valued mostly based on its growth potential has fallen significantly from its earlier highs, but some are still performing well.

Keep reading to see 10 of them.

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Unlike most tech stocks, Airbnb (NASDAQ: ABNB) didn't benefit from pandemic tailwinds, but instead faced significant challenges like the rest of the travel sector. Early in the global health crisis, the company was forced to lay off a quarter of its staff.

However, today there's no doubt that the company is shining as it's topped pre-pandemic levels on all key performance metrics, even as the effects of COVID-19 still linger around the world.

In its most recent quarter, revenue was up 58% from a year ago and 73% from the second quarter of 2019, to $2.1 billion. The company is now highly profitable with $795 million in free cash flow in the quarter and $379 million in net income.

While the stock is still down about 50% from its previous peak, it's clear that the business is executing, which will eventually be reflected in the share price.

ALSO READ: Is Airbnb a Buy Now?

Chipotle (NYSE: CMG) is another growth stock winner from an unlikely sector. Restaurant stocks largely struggled early on in the pandemic, but Chipotle, like many of its peers, adapted to the crisis with an emphasis on digital and delivery and has since posted impressive growth numbers.

In its most recent quarter, comparable sales rose 10%, driving a 17% increase in revenue, and profit margins expanded as well.

In-store traffic is returning also, giving the company a healthy balance between digital orders and eat-in customers.

Chipotle stock is now down just 17% from its all-time high, comparable to the S&P 500, which is down 14% from its peak.

Tesla (NASDAQ: TSLA) was the breakout star of the pandemic as the electric vehicle stock soared more than 700% in 2020. And the stock has held onto these gains much more than other growth stocks that soared that year.

Tesla is now down 30% from its all-time high, which compares with a 22% pullback in the Nasdaq.

More importantly, the business is delivering strong results with revenue up 43% to $14.6 billion in the second quarter and operating income nearly doubling to $2.5 billion, despite a COVID-19 shutdown at its China factory. Given that performance, it's hard to question the company's growth credentials.

Costco (NASDAQ: COST) might not fit everybody's definition of a growth stock, but the warehouse retailer has steadily outgrown its industry and continues to open new brick-and-mortar stores while also delivering e-commerce growth.

It also trades at premium worthy of a growth stock.

Costco has posted strong growth throughout all phases of the pandemic, and with its fiscal year nearly over, comparable sales are up 10.7%, excluding fuel and currency exchange.

The retail stock is also down just 11.4% from its peak, meaning it's fallen less than the S&P 500.

ALSO READ: Is Costco Stock Worth Paying Up For?

Shares of Latin American e-commerce and digital payments company MercadoLibre (NASDAQ: MELI) are down nearly 50% from their peak, but have already jumped 70% from their recent trough as the company is still growing rapidly, bucking the trend with other e-commerce stocks.

In its second-quarter earnings report, currency-neutral revenue jumped 57% to $2.6 billion with total payment volume up 84% to $30.2 billion, while gross merchandise volume increased 26.2% to $8.6 billion.

Profits are ramping up with earnings per share nearly doubling in the quarter, a favorable sign for long-term growth.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Lululemon Athletica (NASDAQ: LULU) has long been one of the top performers in the apparel sector, and the company's performance has remained strong after recovering from a brief dip early in the pandemic.

In its most recent quarter, revenue jumped 32% to $1.6 billion, and comparable-store sales rose 24% as consumers returned to stores.

Profitability also remained strong with an operating margin of 16.1%.

Lululemon stock is still down by about a third from its previous heights, but if its recent trajectory continues, the stock should recover those losses.

You might think that the logistics sector would have hit some headwinds with rising inflation, supply chain challenges, and the slowdown in e-commerce, but GXO Logistics (NYSE: GXO) has bucked those expectations.

The company, which was spun off from XPO Logistics a year ago, is the world's largest pure-play contract logistics provider, with close to 1,000 warehouses around the world. In the second quarter, it posted 20% organic revenue growth and also completed its acquisition of U.K.-based Clipper Logistics, giving it another important avenue for growth.

While the stock is down more than 50% from its peak last year, its recent numbers show the company looks primed for long-term growth.

ALSO READ: Investing in Transportation Stocks

The digital advertising industry has gotten hit hard in recent months as social media companies and other platforms have reported slowdowns in demand.

However, Perion Network (NASDAQ: PERI), a small-cap ad tech company that connects ad buyers and sellers through its intelligent hub, posted brisk growth in its second-quarter earnings report.

Revenue rose 34%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) doubled in the period, boosted by strong growth in video and demand for direct response ads.

The stock is down 36% from its previous peak, but the sell-off and rising profits are making the stock look cheap.

Energy drink maker Celsius Holdings (NASDAQ: CELH) was another big pandemic winner as the stock jumped nearly 1,000% in 2020.

The consumer discretionary stock has continued to gain since then, and it has already recovered from a sell-off earlier this year. In fact, the stock is down less than 10% from its all-time high.

In its first-quarter earnings report, revenue jumped 167% $133.4 million, and adjusted EBITDA more than tripled to $14.8 million.

Fellow energy drink maker Monster Beverage has been one of best-performing stocks of the last generation, and Celsius could be shaping up to be another big winner in the industry.

Axon Enterprise (NYSE: AXON) is a unique stock. The company is a law enforcement technology company and is the maker of the Taser electric stun gun, as well as body cameras.

Additionally, Axon has a cloud software component devoted to data like evidence and records.

Thanks to its disruptive approach, the stock has been a steady winner and a reliable grower. Revenue was up 32% to $256 million with a profit margin above 20% in its first quarter.

The stock is still down nearly 50% from its peak a year ago, but its future prospects look bright.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Many of the growth stocks that fell sharply earlier this year have already started to recover as the Nasdaq is now up 20% from its bottom in June.

No one knows if the economy will sink into a recession, but last week's jobs report offers some encouragement for bulls as employment is the most important factor in the health of the economy.

If inflation begins to fall, it seems likely that a recession will be averted, which would be good news for growth stocks, including the ones above.

Jeremy Bowman has positions in Airbnb, Inc., Axon Enterprise, Chipotle Mexican Grill, GXO Logistics, Inc., MercadoLibre, Perion Network, and XPO Logistics. The Motley Fool has positions in and recommends Airbnb, Inc., Axon Enterprise, Celsius Holdings, Inc., Chipotle Mexican Grill, Costco Wholesale, Lululemon Athletica, MercadoLibre, Monster Beverage, and Tesla. The Motley Fool recommends GXO Logistics, Inc. and XPO Logistics. The Motley Fool has a disclosure policy.