Please ensure Javascript is enabled for purposes of website accessibility

It's Not Too Late to Buy the Bounce: These 3 Unstoppable Stocks Are Still 20% Off Their Highs

By Rick Munarriz - Updated Mar 12, 2021 at 9:41AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Growth stocks are rallying again, but some of the best stocks are trading 22% to 27% below their earlier highs. Let's go shopping.

Growth stocks finally seem to be bouncing back, but they're not all the way back. Some of the market's former darlings are still trading well below their earlier all-time highs.

Roku (ROKU -2.58%), Tesla (TSLA 1.66%), and Fiverr International (FVRR -0.95%) are clawing their way back, but they are still trading 22% to 27% below their earlier highs as of Thursday's market close. It's not too late to go bargain hunting. 

A stock chart bouncing up on a trampoline.

Image source: Getty Images.

Roku: 25% off 

It's hard not to like Roku, especially when you can get the streaming video pioneer for 25% below what it was fetching less than a month ago. There are now 51.2 million homes relying on Roku to be their streaming hub, and there's a lot of money to be made when you have a captive audience averaging 3.6 hours a day on your operating system. 

Roku's transformation from a modestly growing hardware company into a speedster high-margin platform provider has been lucrative for its early believers. The stock is a 25-bagger since going public less than four years ago. Revenue has accelerated sharply for four consecutive years, and with platform revenue skyrocketing 81% in its latest quarter, the playing field is still ripe for Roku to improve the monetization of its expanding audience.  

Tesla: 22% off

Even before the recent surge in gas prices, the country -- and the world -- was going electric. Tesla has the pole position in the electric vehicles (EV) market, and its rapid expansion beyond the luxury segment was timed perfectly. 

Tesla was able to hand over key cards for a half-million cars last year. Bears will argue that even now at a 22% discount off its peak market cap of $837 billion, it is still overvalued. Even based on enterprise value, it trades for more than a handful of the largest auto manufacturers combined. But the naysayers are missing the big picture here.

Tesla's grasp at the aspirational end of the EV market is shaking up what a car is worth to an automaker. It's not just about the initial sale. The incremental revenue of over-the-air premium updates (like shelling out an additional $10,000 to unlock the car's full driver-assist features or $2,000 for an acceleration boost) make the initial purchase a long tail of recurring revenue. Other automakers will hand off a new car buyer to the wild world of local gas stations for fuel. Tesla is there with an unmatched network of more than 20,000 Supercharger stations in prime locations.

Explosive growth awaits on both ends of the income statement now. And lucky for you, Mr. Market hit the "summon" feature on the Tesla app to get the stock to shift into reverse to make it easier for you to get into this next-gen transportation and green energy disruptor. 

Fiverr: 27% off

The gig economy took a big step up in the pandemic, and Fiverr has benefited by matching talent with talent seeker in its freelancing marketplace. Revenue soared 77% in 2020, accelerating to a feverish 89% year-over-year growth spurt in its most recent quarter. 

All of the trends are moving in the right direction at Fiverr. The 3.4 million active buyers on its platform are 45% more than it was serving a year earlier. The average buyer is also spending 20% more on the marketplace. The company's take rate (its piece of the action as the matchmaker in the middle) is also on the rise.  

Fiverr isn't just a pandemic play. Folks with digital skills will continue to relish the incremental opportunities of side hustles, and the brand's glow-up over the past year will make it the logical choice for more people looking for tasks to get done. 

Roku, Tesla, and Fiverr are great growth stocks right now. It's time to start checking items off your Wall Street shopping list.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$674.90 (1.66%) $11.00
Roku Stock Quote
Roku
ROKU
$91.77 (-2.58%) $-2.43
Fiverr International Ltd. Stock Quote
Fiverr International Ltd.
FVRR
$38.56 (-0.95%) $0.37

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.