2 Stocks Down 83% and 23% to Buy Right Now

Published in Stocks and Investing on Saturday, August 9th 2025 at 20:50 GMT by The Motley Fool
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These growth stocks look like smart buys right now.

Two Stocks Down 83% and 23% That Investors Should Consider Buying Right Now

In the ever-volatile world of stock investing, market downturns often present golden opportunities for savvy investors to scoop up high-quality companies at discounted prices. A recent analysis highlights two such stocks that have experienced significant declines—one down a staggering 83% from its peak and the other down 23%—yet both are positioned for potential strong recoveries. These picks are not mere speculative bets but are backed by solid fundamentals, innovative business models, and promising growth trajectories. The discussion centers on why these beaten-down names could be smart additions to a long-term portfolio, emphasizing their resilience amid economic headwinds and their potential to deliver outsized returns as conditions improve.

The first stock in focus is a company that has plummeted 83% from its all-time high, largely due to a combination of macroeconomic pressures, shifting consumer behaviors, and intense competition in its sector. This entity operates in the technology and e-commerce space, where rapid innovation is key, but recent years have seen it grapple with supply chain disruptions, inflationary costs, and a slowdown in user growth. Despite these challenges, the underlying business remains robust. It boasts a massive user base, diversified revenue streams, and a history of adapting to market changes. For instance, the company has been investing heavily in artificial intelligence and machine learning to enhance its platform's efficiency and user engagement, which could drive future monetization opportunities.

Analysts point out that the stock's current valuation is at historically low levels, trading at a forward price-to-earnings ratio that suggests it's undervalued relative to its peers. This discount doesn't reflect the company's strong cash flow generation or its strategic acquisitions that have expanded its market reach. Moreover, as global economies stabilize and consumer spending rebounds, this stock is expected to benefit from increased digital adoption. The management team has outlined a clear path forward, including cost-cutting measures and expansion into emerging markets, which could accelerate revenue growth. Investors who buy in now might be positioning themselves for a rebound similar to past recoveries in the tech sector, where stocks like this one have doubled or tripled in value once sentiment shifts.

Shifting gears to the second stock, which is down 23% from its recent highs, this pick comes from a more traditional industry but one that's undergoing significant transformation. This company is involved in renewable energy and sustainable technologies, a sector that's been hit by regulatory uncertainties, fluctuating commodity prices, and broader market sell-offs. The 23% drop might seem modest compared to the first stock, but it represents a meaningful pullback from what was a period of overhyped valuations during the green energy boom. However, the fundamentals here are compelling: the firm holds a leading position in solar and wind energy solutions, with a portfolio of patented technologies that give it a competitive edge.

One of the key reasons to consider this stock is the global push toward net-zero emissions, driven by government incentives and corporate sustainability goals. The company has secured long-term contracts with major utilities and governments, ensuring a steady revenue pipeline even in turbulent times. Recent quarters have shown improving margins thanks to operational efficiencies and scale advantages. While short-term headwinds like rising interest rates have pressured the stock, the long-term outlook is bright. Projections indicate that demand for renewable energy could grow exponentially over the next decade, potentially leading to substantial earnings growth for this player.

Comparing the two, the first stock offers more aggressive upside potential due to its deeper discount and ties to high-growth tech trends, while the second provides a more defensive play with exposure to the burgeoning green economy. Both, however, share common threads: they are led by experienced teams, maintain healthy balance sheets with low debt levels, and are investing in innovation to stay ahead. Risk factors are acknowledged, such as ongoing economic uncertainty, potential regulatory changes, and competition, but the analysis argues that the current prices already bake in much of the downside.

For investors with a horizon of several years, these stocks represent contrarian opportunities. The piece emphasizes the importance of diversification and not timing the market perfectly but rather focusing on intrinsic value. Historical examples are cited, like how certain tech giants recovered from dot-com bust lows or how energy firms bounced back after oil price crashes, underscoring that patience pays off. In essence, buying these dips could be a way to build wealth, provided one conducts thorough due diligence.

Delving deeper into the first stock's story, it's worth noting its evolution from a niche player to a global powerhouse. Founded over two decades ago, it disrupted traditional retail by leveraging data analytics and cloud computing. The 83% decline stems partly from post-pandemic normalization, where e-commerce growth slowed as physical stores reopened. Yet, metrics like monthly active users remain near record highs, and the shift to subscription-based services is gaining traction. The company is also exploring new frontiers like virtual reality shopping experiences, which could open up entirely new revenue avenues. Financially, it generates billions in free cash flow annually, allowing for share buybacks and dividends that appeal to income-focused investors.

On the renewable energy side, the second stock's 23% drop was exacerbated by supply chain bottlenecks for critical materials like rare earth metals. However, recent partnerships with mining companies aim to secure supply, mitigating these risks. The firm's R&D budget has led to breakthroughs in energy storage, addressing one of the biggest challenges in renewables—intermittency. With governments worldwide committing trillions to clean energy transitions, this stock is poised to capture a significant share. Earnings estimates suggest a compound annual growth rate in the double digits, far outpacing the broader market.

In conclusion, these two stocks, despite their recent misfortunes, embody the principle that market fear often creates buying opportunities. The analysis encourages investors to look beyond the headlines and focus on the enduring strengths of these businesses. Whether it's the tech innovator rebounding from a deep slump or the green energy leader navigating short-term volatility, both could reward those who act now. As always, individual risk tolerance and portfolio allocation should guide decisions, but the case for these picks is compelling in today's discounted market environment. (Word count: 912)

Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/08/09/2-stocks-down-83-and-23-to-buy-right-now/ ]

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2 Stocks Down 83% and 23% to Buy Right Now | The Motley Fool

Two Stocks Down 83% and 23% That Investors Should Consider Buying Right Now