all clear for the growth stocks?

After what’s been a painful first half of the year, growth stocks have now bottomed and are clear for shopping, said EMJ Capital’s Eric Jackson on a recent CNBC interview.

Jackson’s remarks on ‘Closing Bell: Overtime’

According to Jackson, the high-flying tech stocks were the first to take a hit and so, it only makes sense that they are the ones to start the bottoming process.

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On top of that, he added, growth stocks tend to be the darlings when a recession hits – the probability of which is increasing by the day. On CNBC’s “Closing Bell: Overtime”, Jackson said:

Are people going to come back to these stocks? Yes, because they have the growth rate. Ultimately, in a period of a recession, people always want growth and so, this sector is going to rise again.

The tech-heavy Nasdaq Composite is now up more than 10% from its low in mid-June.

How to identify the growth stocks worth buying right now?

Jackson, however, is not of the opinion that the entire tech space is ripe for a bounce and recommends handpicking the names that have greater visibility into the future free cash flow.

You have to sift through these names; think a couple of years ahead and determine which of these might be cash flow negative at the moment but are about to turn the corner. Those are the ones with the best re-rating opportunities.

He sees now as similar to the economic downturn of 1990 that saw the big shots like Oracle and Adobe took a massive plunge, only to make new highs just a few months later.

The mega cap tech names are scheduled to report their quarterly results this week.