I just bought these beaten-up growth stocks for my ISA

Edward Sheldon just snapped up two new stocks for his ISA. Both are currently well off their 52-week highs, meaning their valuations have also come down.

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Right now, there are many stocks well off their recent highs. As a result, I’m seeing quite a few attractive investment opportunities.

Here, I’m going to highlight two stocks I’ve snapped up for my ISA in the last few weeks. Both have taken a big hit recently and I see the potential for a rebound.

A buying opportunity

First up is Ergomed (LSE: ERGO). It’s an under-the-radar, founder-led company that provides specialised services to the pharma industry. Operating in over 100 countries, it offers solutions to project management (for drug trials, etc), clinical monitoring, regulatory affairs, and more.

Ergomed’s share price has come down from near 1,400p to around 1,000p since the start of December and I see a lot of appeal in the stock after the fall.

This is a healthcare company that has a fair bit of momentum right now. Last year, the group generated revenue of £145.3m, up 22.5% year on year. And at the end of 2022, the group’s order book was sitting at a £295m record high.

As we look ahead to 2023, demand for our services is high.

Dr Miroslav Reljanović, Ergomed Executive Chairman

The risk here is that funding for biotech customers could dry up if financial conditions continue to tighten. This could impact the stock – which currently has a price-to-earnings (P/E) ratio of about 22 – in the short term.

Taking a long-term view however, I’m confident in the growth story. Over the next decade, the global drug discovery market is projected to grow at around 9% per year.

Huge growth potential

Another stock I bought was Airbnb (NASDAQ: ABNB), which is listed in the US. It operates the world’s largest home rental platform.

There’s a lot to like about this well-known company from an investment perspective, in my view. It has a great product/service for a start. I was reminded of this when I recently took a trip to Australia. Through Airbnb, I was able to find some top-notch accommodation.

Secondly, it has a very powerful brand, so powerful that it has even become a verb. This is a huge competitive advantage.

Third, the company has plenty of growth potential. The beauty of its platform is that it’s really scalable. I see the company as well-placed to benefit from the retirement of the Baby Boomers (who love to travel).

Looking forward to 2023, we’re seeing strong demand in Q1, indicating that consumer confidence to travel remains high.

Airbnb 2022 results

Finally, the company is now profitable. This year, the group is projected to generate earnings per share of $3.30.

Now ,Airbnb shares are well off their 52-week highs. This time last year, they were trading near $165. Today, they’re near $110.

Yet even after this share price weakness, they’re still quite expensive. Currently, the forward-looking P/E ratio here is about 33. This adds risk to the investment case.

I’m convinced that buying now will pay off in the long run though. I think this travel company is just getting started.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon has positions in Airbnb and Ergomed Plc. The Motley Fool UK has recommended Airbnb and Ergomed Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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