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When growth actions encounter brief -term challenges, stock prices may fall rapidly. And these are the possibilities of long -term investors can strive to apply.
I think this was the case recently in several companies. So investors who want to build wealth with time may consider some names that usually trade with much higher valuation multiplies.
Amazon
Amazon (NASDAQ: Amzz) that the price of the shares dropped by almost 10% after the company’s profit report in Q2. The main reason was the threat of tariffs, which still pose a risk that investors must take into account.
AWS results – Amazon cloud processing department – were also a cause of anxiety. This is because the 17% augment in sales published by the unit was worse than its rivals Microsoft AND Alphabet.
However, the general director of Andy Jassa is very positive. When artificial intelligence (AI) passes from training to inference, Jaszy believes that the diverse Amazon products put the company in a forceful position.
If this is true, the company could even grow much more. And I think that this means that the shares are worth considering because the market expresses its fears about the latest earnings.
Scientific judges
Scientific judges (LSE: JDG) is another growth resource for which I have an eye at the moment. It is a tiny captain in Great Britain, which can be unstable, and the price of shares dropped rapidly after updating last month.
The company is fighting a tender trade environment in the USA. Simply put, research financing was more tough to get, which meant a lower demand for scientific instruments.
Importantly, the company’s competitive position still seems very intact and I think that its development strategy based on obtaining other companies to add to its network can be very effective.
With price ratio (P/E) 21 (based on corrected profits from 2025), the actions do not look particularly costly. That is why I want to apply it before the price of shares regains recovery of the share price.
Palo Alto
Finally, actions in the giant’s cyber security Palo Alto Networks (Nasdaq: PANW) fell by 16% in the last month. But the company has a forceful position in the developing sector, in which expenses become less discretionary.
The company announced a contract for the takeover Cyberark software for USD 25 billion. The general rule in such contracts is that the greater they are, the greater the risk – and so especially here.
Palo Alto finances a transaction using shares, but plans to pay a multiple of a higher price for sale (p/s) for cyberark than its own shares, which are currently the subject of trade. This makes the contract particularly risky.
Still, I think that the value of inventory is worth considering. I think that growing political tensions can augment expenses in the field of cyber security, and the company is well prepared to apply it.
Buying possibilities
Most of the time, the stock market is able to recognize high -quality companies with forceful future prospects. And growth shares usually trade in valuations reflecting this reality.
Although it does not prevent them from good investments over time, it makes them less attractive. Fortunately, sometimes extremely good possibilities appear.
Amazon, scientific judges and Palo Alto can be good examples. Investors will have to judge themselves what is the most attractive, but I think that all three are worth looking at now.
