Who within the investing world is not in search of out promising growth stocks so as to add to their long-term portfolio? Well, I suppose some aren’t. They could also be targeted on dividend-paying shares, which is definitely an excellent investing technique. But progress shares, which are inclined to rise at a faster-than-average clip, are definitely attractive — they usually could assist you attain your monetary targets extra shortly.
Some progress shares have grown so quick that their valuations now appear sky-high. Think, for instance, of Palantir Technologies, with a current price-to-earnings (P/E) ratio of 460. Such shares may continue to grow, in fact, however additionally they stand an honest likelihood of pulling again within the close to time period.
Image supply: Getty Images.
Thus, it may be efficient to seek for promising progress shares amongst those who have fallen in worth, as they will current extra interesting valuations. And with the inventory market lately swooning, there are some engaging progress shares on the market.
Here’s a take a look at 4 such firms, every of which has seen its shares tumble no less than 20% over the previous month. Check out the carnage under:
Stock
1 Month
3 Months
Year to Date
1 Year
Block(NYSE: XYZ)
(26.5%)
(32%)
(28.2%)
(25.1%)
The Trade Desk (NASDAQ: TTD)
(26.2%)
(55.3%)
(52.5%)
(33.1%)
Accenture(NYSE: ACN)
(21.8%)
(17.5%)
(14%)
(19.5%)
MongoDB(NASDAQ: MDB)
(34.7%)
(22.9%)
(18.7%)
(47.3%)
Data supply: Morningstar.com as of March 20, 2025.
Block is a inventory it’s possible you’ll know by its earlier title, Square, or its earlier ticker image, SQ. It’s the identical enterprise, a fintech (monetary expertise) enterprise encompassing companies equivalent to Square, Cash App, TIDAL, and TBD. Its 30-plus merchandise assist companies and shoppers spend, switch, or make investments cash — even in cryptocurrencies — amongst different issues.
Block’s inventory has fallen so much that it was lately close to its value in 2018. Its current fourth-quarter report fell wanting expectations, with income solely rising by 4.5% yr over yr. Still, it is rising, and earnings per share (EPS) had been up 51%. It could not soar this yr, however it has promising applied sciences that would make the inventory a long-term winner.
The Trade Desk was a market darling for some time, however its inventory has headed south lately. Its flagship providing is a programmatic promoting platform that lets advertisers plan, execute, and optimize digital advert campaigns. In this area, it has been the highest canine, however its current earnings report so spooked buyers that they despatched the inventory down by 41% in February.
What’s occurring? Well, many assume the market’s response was overblown, as The Trade Desk’s income was nonetheless up 22% yr over yr, with non-GAAP (adjusted) earnings popping by 44%. CEO Jeff Green cited a “series of small execution missteps” that led to the underperformance, and listed corrective steps being taken.
There’s quite a lot of hope for this firm. For instance, streaming providers are displaying extra adverts, which might enhance The Trade Desk’s enterprise. And whereas it does face some large rivals, it is the largest unbiased promoting platform of its type.
Accenture will not be a family title, however it’s a enormous skilled providers firm, working across the globe with roughly 774,000 staff working in enterprise consulting, and expertise providers, amongst different issues. Its inventory could also be down practically 20% over the previous yr, however it has been a powerful performer for a few years, with annual features of 16.5% over the previous 5 years and 15% over the previous 15 years.
Accenture’s current earnings report had a number of purple flags, equivalent to a drop in new bookings progress. That despatched its inventory south — not fairly to bargain-basement ranges, however ranges extra engaging than they was once. There’s lots to love about Accenture, equivalent to its new software program suite constructed on expertise from Nvidia — and its rising dividend that lately yielded 1.8%.
Database specialist MongoDB has lately delivered top- and bottom-line progress, however some buyers are anxious about its clients spending much less within the present unsure financial atmosphere. Its stable fourth quarter featured income up 20% yr over yr and buyer progress, too. Its cloud platform, Atlas, delivered 71% of the quarter’s income. MongoDB is investing in synthetic intelligence (AI), too, like many firms, although it stays to be seen precisely how nicely this can enhance its fortunes.
With a powerful steadiness sheet and a low valuation, MongoDB is value a more in-depth look from long-term buyers. Each of those firms is value a more in-depth look, really. They could not surge immediately or tomorrow, however every has the potential to ship above-average features within the years to return. Note, too, that if you happen to’re not assured sufficient to select particular person progress shares, you possibly can all the time go for exchange-traded funds (ETFs) targeted on progress.
Ever really feel such as you missed the boat in shopping for essentially the most profitable shares? Then you’ll wish to hear this.
On uncommon events, our knowledgeable staff of analysts points a “Double Down” stock suggestion for firms that they assume are about to pop. If you’re anxious you’ve already missed your likelihood to take a position, now’s the perfect time to purchase earlier than it’s too late. And the numbers communicate for themselves:
Nvidia:if you happen to invested $1,000 after we doubled down in 2009,you’d have $312,980!*
Apple: if you happen to invested $1,000 after we doubled down in 2008, you’d have $42,421!*
Netflix: if you happen to invested $1,000 after we doubled down in 2004, you’d have $537,825!*
Right now, we’re issuing “Double Down” alerts for 3 unimaginable firms, and there will not be one other likelihood like this anytime quickly.
Selena Maranjian has positions in Block, Nvidia, and The Trade Desk. The Motley Fool has positions in and recommends Accenture Plc, Block, MongoDB, Nvidia, Palantir Technologies, and The Trade Desk. The Motley Fool has a disclosure policy.
