Growth stocks have seen significant success in the past 18 months, with investors showing renewed interest in the sector despite a brief downturn in 2022. The Federal Reserve’s planned rate cuts and the rapid advancements in fields like artificial intelligence and semiconductors have been driving factors for this resurgence.
While many growth stocks have rebounded, some quality names have hit new 52-week lows in recent weeks. Among these, three standout growth stocks are worth considering at their current low points.
Endava (NYSE: DAVA) is a leading offshoring IT consultant that has experienced impressive revenue growth and profitability in recent years. Despite concerns over slowing client spending and the impact of AI on IT solutions, Endava remains well-positioned to benefit from the adoption of new technologies.
Chewy (NYSE: CHWY) is a specialty e-commerce company focused on pet products. After a period of stalled growth and profitability, analysts expect a return to solid revenue growth for Chewy. The stock is currently trading at an attractive valuation, presenting a compelling opportunity for investors.
Evotec (NASDAQ: EVO) is a German life sciences company that specializes in drug discovery. With a unique revenue model that includes royalty streams from its clinical work, Evotec has demonstrated strong revenue growth in recent years. Despite a recent dip in its stock price, the company is expected to achieve double-digit growth in revenue and EBITDA this year.
Overall, these three growth stocks offer potential opportunities for investors looking to capitalize on their current low valuations.