Please ensure Javascript is enabled for purposes of website accessibility

3 Growth Stocks That Could Be Great Long-Term Investments

By Jose Najarro - Apr 12, 2021 at 11:00AM

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

These three growth stocks are down big. The decline in stock price could mean a great buying opportunity for long-term investors.

In today's video I look at three growth stocks that are down double digits from their all-time 12-month highs. Below are three reasons to add these stocks to your watchlist as potential buys.

Three reasons to watch GoodRx (GDRX 4.05%)

  1. GoodRx is down roughly 30% from its all-time high, with a market cap of $15.7 billion.
  2. During GoodRx's most recent quarter (Q4 20), the company reported 32% year-over-year growth in monthly active consumers and 102% year-over-year growth in subscribers.
  3. Revenue guidance for FY 2021 shows approximately 35% year-over-year growth.

Three reasons to watch Teladoc Health (TDOC 4.88%)

  1. Teladoc is down roughly 38% from its all-time high, with a market cap of $27.97 billion.
  2. For revenue between 2016 and 2020 expected values, Teladoc has seen over 70% CAGR and over 80% recurring revenue.
  3. Paid membership has grown over 40% CAGR between 2016 and 2020 expected values, and over the same period, visits have grown at over 80% CAGR.

Three reasons to watch Skillz (SKLZ 1.61%)

  1. Skillz is down roughly 60% from its all-time high, with a market cap of $6.68 billion.
  2. The CEO of Skillz recently wrote an open letter to investors. It is a quick read, and I would recommend that every SKLZ investor read it. The most important note was that Skillz doesn't include potential new games in its revenue guidance, meaning any new hit games are pure upside to its forecast.
  3. Skillz has a solid balance sheet with plenty of cash and had no debt in its most recent earnings.

Click the video below for my full thoughts. 

*Stock Prices used were the closing prices of April 9, 2021. The video was published on April 11, 2021. 

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

Teladoc Health, Inc. Stock Quote
Teladoc Health, Inc.
$34.83 (4.88%) $1.62
GoodRx Holdings, Inc. Stock Quote
GoodRx Holdings, Inc.
$6.16 (4.05%) $0.24
Skillz Inc. Stock Quote
Skillz Inc.
$1.26 (1.61%) $0.02

*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 analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/02/2022.

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.