Growth stocks have started to claw back at the losses they've suffered since generally peaking around mid-February. But there are still some former market darlings that have a long way to go before truly bouncing back.

Coinbase Global (COIN -3.90%)Skillz (SKLZ 7.45%), and Teladoc Health (TDOC 0.62%) are all still trading at least 40% below their previous highs. Let's see why now might be a good time to take a good look at these fast-growing names.

A red rubber stamp inked up to duplicate 40% OFF.

Image source: Getty Images.

Coinbase: Down 47%

The leading cryptocurrency exchange traded as high as $429.54 the day it hit the market two months ago, and it's been largely downhill from there. Bitcoin (BTC -0.30%) was peaking in April, correcting sharply with negative news out of China and Elon Musk.

The climate is kinder now. Bitcoin has bounced more than 25% higher since bottoming out four weeks ago, and even Musk offered it an olive branch by professing support for the leading cryptocurrency once it becomes cleaner to mine.

Volatility naturally works in favor of a trading exchange. Revenue more than tripled through the second half of last year, only to accelerate with an 845% year-over-year burst in its latest quarter. Sustaining that pace won't be easy, but the stock's valuation is cheaper than you think even if it's able to just march in place. Quadruple the $771.5 million in earnings that Coinbase rang up through the first three months of this year and you get an earnings multiple of just 19 here. 

The risks are significant. Coinbase's trading fees are high for its flagship product, and this market will get more competitive as it grows. If the market doesn't grow (likely because the cryptocurrency market proves fleeting), Coinbase is going to be in for a world of hurt. It's a high-risk stock with a lot of upside. 

Skillz: Down 59%

Skillz offers a win-win proposition for developers of mobile games and the people who play them, but the stock still closed 59% below its February all-time high on Wednesday. The online gaming platform that Skillz operates allows casual gaming apps to drum up traffic by offering contests and tournaments. Players get a chance to win stuff. 

The company has fallen out of favor despite recently boosting its full-year guidance when it reported a better-than-expected 92% increase in revenue. Skillz is also making smart moves. Earlier this month, it announced a deal to acquire Aarki, an upstart that leans on machine learning to deliver advanced advertising capabilities. It was a small deal valued at $150 million in cash and stock (or just 2% of Skillz's enterprise value), but it should add a lot more than that in the monetization upgrade for Skillz.

Teladoc: Down 51% 

Teladoc became one of the last year's more-popular pandemic plays. The telehealth leader gave folks a way to visit the doctor, nutritionist, or therapist from the safety and convenience of home. Teladoc naturally stumbled when the coronavirus-vanquishing vaccines hit the market late last year, but shares would still go on to hit fresh all-time highs in February of this year. 

The stock losing half of its value is a head-scratcher. The market for telemedicine is expanding with hungry competitors, but you don't dismiss an innovative market leader with 51.5 million U.S. paid memberships until it proves mortal. Teladoc is still posting strong organic growth, and now it's trading at a discount to the deal for Livongo Health (mostly done with stock) that closed last year. Livongo expands Teladoc's offerings with its proactive monitoring platform for chronic conditions that generates healthier outcomes by steering patients onto the right path when health results start to stray. Teladoc stock has been calling in sick, but the same can't be said about the company itself.