This year has been a particularly rough year for growth stocks. The severe macroeconomic climate has led to a broad risk-off investment sentiment, forcing investors toward defensive plays.

On the positive side, there are plenty of opportunities to buy well-known growth names at discounted valuations. For example, the Vanguard Growth ETF (NYSEARCA:VUG), one of the largest growth exchange-traded funds (ETFs), is down 31% year-to-date (YTD), compared to a 21% decline for the S&P 500 index.

Meanwhile, the iShares Russell 1000 Growth ETF (NYSEARCA:IWF) has declined 28% in 2022, twice the 14% dip for its counterpart, the iShares Russell 1000 Value ETF (NYSEARCA:IWD).

However, history tells us high-growth stocks constitute a smart place for long-term investors to allocate a portion of their investment portfolio. With that information, here are seven growth stocks for Q3.

Analog Devices (ADI)

Semiconductor play Analog Devices (NASDAQ:ADI) manufactures integrated circuits that process high-performance analog and digital signals. It has recently achieved top cybersecurity qualification for its wireless battery management system for the automotive industry.

On May 18, management announced Q2 earnings. Revenue came in at $2.97 billion, up 79% increase year-over-year (YOY). Adjusted diluted earnings-per-share (EPS) jumped 56% YOY to $2.40, up from $1.54 a year ago. Cash and equivalents ended the quarter at $1.74 billion.

Analog Devices benefited from robust demand across all end markets. The industrial business generated 51% of revenue and delivered 54% YOY growth, thanks to demand for chips used in automation and digital healthcare. In Q3, management anticipates $3.05 billion in revenue in the third quarter, along with adjusted earnings of $2.42 per share.

ADI stock has declined around 15% YTD to trade near 52-week lows. It currently generates a 2.1% dividend yield. Forward price-to-earnings (P/E) and price-to-sales (P/S) numbers stand at 16.2x and 7.4x, respectively. Analysts’ 12-month median price forecast stands at $203 according to CNN Business.

Cloudflare (NET)

Cloud services play and content delivery network (CDN) Cloudflare (NYSE:NET) is highly regarded for its platform that accelerates and protects business-critical applications. Its portfolio also includes software developer tools.

Management released Q1 metrics on May 5. Revenue increased 54% YOY to $212 million. Non-GAAP net income came in at 1 cent per diluted share, compared to a non-GAAP net loss of 3 cents per share in the prior-year quarter.

Cloudflare benefits from an extensive global infrastructure. In Q1, it delivered a record dollar-based net retention of 127% and added roughly 14,000 paying customers. Now, it has well over 150,000 clients that contribute to top line.

Meanwhile, the CDN specialist recently launched R2 storage and its serverless D1 database. They both help streamline application development on the Cloudflare platform.

Cloudflare stock is down 68% YTD. Shares are trading at 18.9 times sales, well below its historical average of more than 40 times sales. Wall Street’s 12-month median price forecast for Cloudflare stock stands at $98.

Fastenal (FAST)

Next up is the industrial name Fastenal (NASDAQ:FAST), which manufactures industrial and construction supplies, such as fasteners. Its portfolio also includes safety products, janitorial supplies as well as cutting tools.

Fastenal announced Q1 results on April 13. Revenue came in at $1.7 billion, up 20.3% YOY. Diluted EPS came in at 47 cents, up 27.8% from 37 cents a year ago. Cash and equivalents ended the quarter at $234 million.

In Q1, management signed contracts for 106 new on-site locations, bringing the total to 1,440 sites nationwide. Analysts noted the high demand for construction and manufacturing equipment and supplies.

So far in 2022, Fastenal stock is down more than 22%. It currently generates a 2.5% dividend yield. Shares are trading at 26.3 times forward earnings and 4.6 times sales. The 12-month median price forecast for FAST stands at $57.50.

Lam Research (LRCX)

Semiconductor processing equipment company Lam Research (NASDAQ:LRCX) is known for producing etching and deposition machines used to create integrated circuits. Main customers include foundries and advanced memory manufacturers.

In late April, Lam reported Q1 metrics. Revenue increased 5.5% YOY to $4.06 billion. Adjusted diluted EPS came in at $7.40, down 13% from $8.53 in the previous quarter. Cash and equivalents ended the quarter at $4.19 billion.

Despite growing fears of a recession, leading foundries still put out ambitious spending plans. On June 14, Lam Research announced that the South Korea-based SK Hynix (OTCMKTS:HXSCL) had picked its dry resist Extreme Ultraviolet (EUV) technology to produce advanced dynamic random-access memory (DRAM). This dry resist technology enables cost-effective scaling.

So far in 2022, LRCX stock is down 40%, trading close to 52-week lows. It currently supports a 1.4% dividend yield. Shares are trading at 11.6 times forward earnings and 3.7 times sales. Analysts’ 12-month median price forecast for Lam Research stock stands at $600.

Resmed (RMD)

Resmed (NYSE:RMD) is one of the largest respiratory care device companies worldwide. Patients with respiratory diseases rely on its products especially for sleeping apnea and chronic obstructive pulmonary disease.

In late April, Resmed reported Q3 financials. Revenue increased 12% YOY to $864.5 million. Non-GAAP diluted earnings came in at $1.32 per share, compared with $1.30 per share in the prior-year quarter. Cash and equivalents ended the period at $202 million.

Analysts point out rising diagnosis of sleep apnea cases offers solid tailwinds for the medical solutions provider. Meanwhile, management recently announced the acquisition of Germany-based software solutions provider Medifox Dan. Resmed will now extend its global software-as-a-service (SaaS) solutions

So far in 2022, RMD stock has declined almost 23%. Shares are trading at 32.5 times forward earnings and 8.4 times sales. The 12-month median price forecast for Resmed stock is at $247.69. 

Shopify (SHOP)

Ecommerce software and solutions provider Shopify (NYSE:SHOP) enjoyed stellar growth during the pandemic. A wide range of customers rely on its platform to build an online presence and manage sales chains.

In early May, Shopify reported Q1 financials. Revenue increased 22% YOY to $1.2 billion. Adjusted net income declined to 20 cents per diluted share, compared with $2.01 in the prior-year quarter. Cash and equivalents ended the quarter at $7.25 billion.

Gross merchandise volume (GMV) in the first quarter came in at $43.2 billion, up 16% YOY. Revenue generated by Merchant Solutions grew 29% YOY to $859 million. As a result, monthly recurring revenue increased 17% YOY to $105 million.

The ecommerce giant recently announced it’ll acquire the logistics group Deliverr. Analysts expect the transaction to enhance Shopify’s order fulfillment and delivery systems.

SHOP stock is down 76% YTD. Shares are changing hands at 8.6 times sales. Meanwhile, the stock was set for a 10-for-1 stock split on June 28. The 12-month median price forecast for SHOP stock stands at $48.30.

Teradyne (TER)

Teradyne (NASDAQ:TER) is a leading automated test equipment (ATE) specialist. Clients rely on its products for electronics systems, semiconductors, circuit boards and wireless testing.

Management released Q1 results on April 26. Revenue declined 3% YOY to $755 million. Adjusted EPS came in at 98 cents, down from $1.11 in the prior-year quarter. Cash and equivalents ended the quarter at $795 million.

Semiconductor testing accounted for 64% of Q1 revenue. Meanwhile, Q2 total revenue guidance stands at $780 million to $870 million.

Recent research suggests, “assembly defects account for between 12% and 15% of semiconductor customer returns in the automotive chip market.” Thus, as automakers race toward zero production defects, the demand for Teradyne’s products should increase.

So far in 2022, TER stock plunged 44%, offering an attractive buying opportunity for growth investors. Shares are changing hands at 19.1 times forward earnings and 4.5 times sales. Finally, the 12-month median price forecast for TER stock stands at $132.

On the date of publication, Tezcan Gecgil, Ph.D., did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.