Discover three growth stocks that have experienced a recent decline, but offer potential for an upswing. Adobe, Fluence Energy, and GXO Logistics are well-established companies with strong fundamentals and growth prospects.
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3 Growth Stocks Down 21%, 22%, and 28% to Buy in December
The stock market can be unpredictable, but sometimes, it’s worth taking a closer look at companies that have experienced a recent decline. In this article, we’ll examine three growth stocks – Adobe (ADBE), Fluence Energy (FLNC), and GXO Logistics (GXO) – that are down 21%, 22%, and 28% respectively.
1. Adobe (ADBE)
Adobe is a well-known company in the software industry, but it’s not immune to market fluctuations. Recently, its stock price has dropped by 22%. However, this decline presents an opportunity for investors to buy into the company at a lower price.
The good news is that Adobe continues to grow its revenue and earnings. In fact, its revenue has been increasing steadily over the past few years, with a compound annual growth rate (CAGR) of 15%. Moreover, its earnings per share have also been rising, with a CAGR of 20%.
Adobe’s strong financials are due in part to its dominant position in the market. The company is well-established and has a wide range of products that cater to different industries, including creative professionals, businesses, and governments.
2. Fluence Energy (FLNC)
Fluence Energy is an energy storage company that has been growing rapidly in recent years. Despite experiencing a 28% decline in its stock price, the company’s fundamentals remain strong.
One of the key drivers of Fluence’s growth is its increasing backlog. As of September 30, 2024, the company had a backlog of $4.5 billion, representing an increase of 55% over the same period last year. This bodes well for future revenue and earnings growth.
Fluence also has a significant market opportunity ahead of it. According to Mordor Intelligence, the energy storage industry is expected to grow at a CAGR of more than 14% from $51 billion in 2024 to $100 billion in 2029.
3. GXO Logistics (GXO)
GXO Logistics is another company that has experienced a decline in its stock price, down by 21%. However, the recent slump presents an opportunity for investors to buy into the company at a lower price.
The good news is that GXO’s long-term prospects look excellent. The company designs and operates warehousing/logistics operations for customers looking to outsource non-core functions. With e-commerce spending growing at a high-single-digit rate again, GXO’s management believes that underlying demand for e-commerce capacity is accelerating.
Consequently, management targets annual revenue growth of 10% and annual adjusted EPS growth of 15% from 2024 to 2027. Trading on less than 18 times expected 2024 earnings, GXO is an excellent value for a growth stock.
Conclusion
While the recent decline in these companies’ stock prices may be unsettling, it presents an opportunity for investors to buy into them at a lower price. Adobe, Fluence Energy, and GXO Logistics are all well-established companies with strong fundamentals and growth prospects. As always, it’s essential to do your own research and consider multiple factors before making any investment decisions.
Disclosure
The Motley Fool has positions in and recommends Adobe (ADBE), Fluence Energy (FLNC), Salesforce (CRM), and GXO Logistics (GXO). The Motley Fool has a disclosure policy.
