Market volatility usually presents excellent short and long-term buying opportunities for astute investors. Impulsive panic-selling and profit taking can result in quality stocks trading at relatively bargain prices. Here are 3 quality growth stocks I should have bought last week.
Pro Medicus Limited (ASX: PME)
Pro Medicus Limited has been a boom stock in 2019 and at one stage was up more than 205% for the year. Earlier this month the medical imaging software company continued its meteoric rise, recording a 52-week high of $33.78. The volatility in global markets last week saw the Pro Medicus share price sold down heavily. At one stage of the trading session last week, the Pro Medicus share price was down more than 30% from its 52-week high. Pro Medicus closed Friday’s trading session at $28.91, up more than 23% from the week’s low of $23.45.
Pro Medicus is a quality company in the medical imaging sector and has a competitive advantage over other companies in how it approaches data management. Pro Medicus software allows for easy transfer over mobile devices via direct streaming, rather than compressing and sending files. The company has great growth potential, holding transaction model contracts with renowned medical institutions in the United States (US).
Bigtincan Holdings Limited (ASX: BTH)
Bigtincan is a market leader in providing sales enablement automation software that allows clients to increase sales, reduce expenditure and improve customer satisfaction. The Bigtincan share price hit a low of 37 cents last week and finished Friday’s trading session up more than 29% from the week’s low.
The company’s share price has had a relatively flat 2019; however, the company has great potential for future growth. Earlier this year, Bigtincan provided a market update regarding the company’s FY19 revenue guidance. The company increased its outlook for revenue growth from 35% to 40% for the year.
Nanosonics Limited (ASX: NAN)
Nanosonics has had a solid run in 2019, with the company’s share price soaring more than 100% for the year. Nanosonics is well poised for future growth – the company has a sticky business model, growing market and continued product innovation.
Nanosonics provides sterilisation devices to hospitals and healthcare centres around the world. The company’s business model generates revenue through the sale of its Trophon devices, in addition to consumables.
After hitting a low of $4.48 last week, the Nanosonics share price bounced 17%, closing Friday’s trading session at $5.36.
Should you buy?
All investors experience some type of remorse when looking at opportunities in hindsight. Given the current market volatility and uncertainty, the worst thing an investor can do is get emotional and chase stocks that have already run hard.
I suggest that investors keep a watchlist of quality stocks they would like to buy so they are prepared to take advantage of bargain buying opportunities in the future.
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Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO, Nanosonics Limited, and Pro Medicus Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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