The Nasdaq Composite has rallied greater than 11% over the past month, however the tech-heavy index continues to be in bear market territory, buying and selling 21% beneath its all-time excessive. That downturn was sparked by excessive inflation and rising rates of interest, and growth-focused portfolios have been hit notably. However there’s a bit of fine information combined in with the dangerous.

Over the previous 12 months, many high-caliber companies have seen their share costs plunge just because some traders have misplaced their urge for food for development shares within the present macroeconomic atmosphere. And that creates a shopping for alternative for affected person inventory pickers.

As traders calculate their greatest path by way of this bear market, listed below are two Nasdaq-100 development shares they could wish to contemplate shopping for now and holding endlessly.

1. Zscaler: Defending business-critical infrastructure and purposes

Zscaler (ZS 2.89%) makes a speciality of community safety. Its zero-trust platform is essentially totally different from conventional on-premise options. Slightly than routing all site visitors by way of a company information heart, Zscaler leans on synthetic intelligence to examine site visitors and implement safety insurance policies within the cloud. In that respect, Zscaler is a gateway that allows quick and safe connectivity to company assets from any machine or location. However its portfolio additionally consists of instruments for cloud workload safety and digital expertise monitoring.

Zscaler’s platform — generally known as a safe entry service edge (SASE) — runs throughout 150 international information facilities and captures 300 trillion safety alerts every day, making it the biggest safety cloud on the planet. That edge permits Zscaler to ship more practical community safety than any rival. To that finish, analysis firm Gartner has acknowledged Zscaler as an business chief for 11 consecutive years.

Financially, the corporate is firing on all cylinders. Income soared 61% to $970 million over the previous 12 months, and free money move (FCF) climbed 45% to $184 million. So as to add, remaining efficiency obligation (RPO) grew 83% to $2.2 billion. That bodes properly for the corporate as a result of RPO is a number one indicator of future gross sales.

Trying forward, administration places its market alternative at $72 billion, and Gartner believes 60% of enterprises could have plans to undertake SASE options by 2025, up from 10% in 2020. That tailwind ought to hold Zscaler in development mode for years to come back. And whereas the inventory nonetheless trades at a dear 23.6 instances gross sales, that a number of is considerably decrease than the three-year common of 37.Four instances gross sales, which makes now a superb time to purchase just a few shares.

2. Adobe: Powering creativity and customized digital experiences

Adobe (ADBE 0.21%) is likely one of the most diversified software program corporations on the planet, with options that span from digital media to digital expertise. By the previous section, Adobe provides plenty of creativity purposes, lots of that are market-leading merchandise. That features Photoshop for picture enhancing, Premiere Professional for video enhancing, and After Results for movement graphics and visible results.

The digital media section additionally consists of software program like Adobe Signal for digital signatures and Adobe Acrobat for digital paperwork, which drive effectivity for manufacturers by eliminating paper-based workflows. In 2021, the Worldwide Information Corp. acknowledged Adobe (alongside DocuSign) as a market chief in e-signature software program.

By its digital expertise section, Adobe offers a complementary suite of purposes for analytics, advertising and marketing, and commerce. Its software program permits manufacturers to seize, perceive, and make the most of information to focus on content material and personalize the shopper expertise throughout digital channels. Gartner acknowledged Adobe because the chief in digital expertise earlier this 12 months.

Financially, Adobe is rising at a gradual clip attributable to stable leads to each enterprise segments. Over the previous 12 months, complete income climbed 16% to $16.7 billion, and FCF rose 4% to $6.9 billion, which is equal to a powerful FCF margin of 41%. However traders have good motive to imagine that momentum will proceed.

Administration places its addressable market at $205 billion by 2024, and the corporate has outlined a powerful development technique. Amongst different initiatives, Adobe is working to reinforce collaboration by way of web-based variations of Photoshop and Illustrator, which permit creators to concurrently view and edit the identical content material. Adobe has additionally positioned itself to be a key participant within the metaverse with immersive content material instruments like Substance for 3D scene design and modeling and Aero for creating augmented actuality experiences.

At present, shares commerce at 12.4 instances gross sales, a reduction in comparison with the five-year common of 15.three instances gross sales. That is why now appears to be like like a superb time to purchase this development inventory.