In today's video, I look at three growth stocks that are down over 20% from their recent 12-month highs. Below are three reasons to add each stock to your watch list as a potential buy.

Three reasons to watch Spotify (SPOT 2.51%): 

  1. Spotify is down roughly 21% from its all-time high, with a market cap of $54.7 billion.
  2. During Spotify's most recent quarter (Q4 20), the company reported 17% year-over-year growth in revenue and 24% year-over-year growth in premium subscribers.
  3. Spotify has a strong balance sheet with substantial cash, allowing it to be aggressive on its content acquisitions. On Feb. 26, it announced a senior note offering that would further increase its cash holdings. 

Three reasons to watch Tattooed Chef (TTCF -50.00%): 

  1. Tattooed Chef is down roughly 34% from its all-time high, with a market cap of $1.49 billion.
  2. During Tattooed Chef's most recent quarter (Q4 20), the company reported 48% year-over-year growth in revenue and positive GAAP earnings and EBITDA values.
  3. Management gave an outlook that shows revenue growth of 49% for fiscal year 2021 compared to fiscal year 2020, with positive net income.

Three reasons to watch CuriosityStream (CURI 4.76%): 

  1. CuriosityStream is down roughly 41% from its all-time high, with a market cap of $699.94 million.
  2. During CuriosityStream's most recent quarter (Q4 20), the company reported over 100% year-over-year growth in revenue.
  3. For fiscal year 2021, CuriosityStream currently expects a strong year for revenue with 80% year-over-year growth.

Click the video below for my full thoughts. 

*Stock prices used were the closing prices of April 14, 2021. The video was published on April 15, 2021.