So far this year, at the time of this writing, the Nasdaq Composite Index has lost 13.4% of its value, and a number of top growth companies have seen their stock prices decline by even more. But a market correction can be a great time to add new positions to your portfolio.

Investors hoping to take advantage of today's beaten-down share prices should take a close look at Nio (NIO 2.83%), Lucid Group (LCID 0.33%), and Enphase Energy (ENPH -2.19%), all of which have dropped to more attractive valuations. What's more, each of them has a long runway for growth, which means plenty of potential upside from here.

Nio

Chinese electric vehicle manufacturer Nio's stock price has fallen by nearly 27% so far in 2022, and in the past 12 months, it's down by 58%. Investors' concerns about rising competition and its slower growth compared to newer EV companies such Li Auto and XPeng have contributed to its decline. However, the market is missing some key factors here.

First, Nio's vehicle deliveries and revenue are growing at handsome rates. Those rates may have slowed a bit in recent months, but they are nonetheless impressive. In 2021, Nio's sales grew by 109%.

Notably, rival Li Auto's vehicles offer internal combustion engine-based range extension, similar to plug-in hybrid vehicles. Its fully electric vehicles, when they arrive on the market, may come up short in terms of technology compared to those of Nio.

Nio ET5.

Image source: Nio.

Second, Nio's relatively slower growth was due to supply chain constraints as well as some manufacturing line upgrades it undertook in October. Demand for its vehicles remains robust.

Third, Nio is investing in technology and innovations for long-term growth. Its battery-as-a-service model provides buyers an option to rapidly replace their exhausted batteries with fully-charged ones rather than waiting for their current ones to recharge. Customers can also buy Nio's cars for a lower price without a battery and take a battery subscription separately. This service provides car owners the ability to swap their vehicle's batteries for more, or less, powerful ones depending on their immediate needs. Attractive features like these have contributed to Nio's sales growth. Additionally, it is investing heavily in technology and new models, which should lead to further sales growth down the road.

Finally, Nio is also focused on geographic expansion. Eventually, it aims to generate as much as half of its revenue from outside China. If it succeeds in establishing itself as an international brand, it could have an edge over its smaller rivals in foreign markets.

Overall, there are significant growth opportunities for Nio in both its domestic market and internationally. And the stock has fallen to attractive levels, presenting a great buying opportunity.

lucid-air-exterior.

Image source: Lucid Group.

Lucid Group

Lucid Group (LCID 0.33%) started delivering electric vehicles in October. In a very short span of time, the stock price more than doubled, driven by high expectations from investors. But as a new company, it clearly faces several risks, primarily relating to ramping up production, and investors seem to be recognizing that now.

Lucid stock has fallen 30% so far this year, and has returned to the levels it traded at in September. It may take some time for the automaker to navigate through the challenges of boosting its output, and during that period, its stock may remain volatile. However, the company has significant growth potential in the long term. It has a well-crafted expansion plan. Over time, it intends to launch lower-priced models to target the mass market, and is also looking at selling internationally.

The early response to its cars has been extremely positive. The top trim of the luxury Lucid Air model offers a market-leading range for an electric car. Attractive designs and features should keep demand for them robust. And once production ramps up, Lucid's stock price could rise significantly.

An engineer working near solar panels.

Image source: Getty Images.

Enphase Energy

Shares of microinverter manufacturer Enphase Energy (ENPH -2.19%) have dropped by 23% so far this year and are trading 50% off their 52-week high. Concerns about rising interest rates, corporate valuations, and intensifying competition have contributed to the recent downturn in renewable energy stocks.

Enphase Energy has been growing its revenue rapidly for the last several quarters while maintaining healthy margins. There are a couple of factors driving Enphase Energy's rapid growth. First, microinverters have lower maintenance costs and better safety features than string inverters. They also allow users to expand their systems easily when needed. Second, Enphase Energy and rival SolarEdge are the top players supplying inverters for use in solar panels in the U.S., and both companies have grown their revenues in the rapidly expanding market.

Solar energy's use is expected to keep rising for decades, providing a long growth runway for Enphase Energy. If you've been waiting to buy Enphase Energy stock, the recent correction offers an attractive entry point.