Investors have herded to value stocks and safer assets of late in response to rising interest rates, historically high inflation levels, and fears connected to the war between Russia and Ukraine. This transition has been bad news for high-growth companies, which have seen their stock prices plummet in recent months. But the stock market's slump has been influenced by sentiment rather than fundamentals: Many great companies now trade at bargain valuations despite enjoying strong financial profiles.

The market may continue to face downward pressure for the foreseeable future; however, that doesn't mean we should postpone buying stocks for the time being. In fact, the latest sell-off has created some favorable buying opportunities for those who are willing to ride out current short-term noise. Let's examine three promising growth stocks today that could generate fortunes for investors down the road. 

A person videoconferences with colleagues at work.

Image source: Getty Images.

1. Zoom Video Communications

Zoom Video Communications (ZM -0.35%), which blossomed during the pandemic due to stay-at-home orders, has tanked 66% over the past six months, a far deeper collapse than the negative 16% change that the S&P 500 has experienced in the same timeframe. 

Yet, interestingly enough, the leading video conferencing provider continues to strengthen its financial condition. In its fiscal year 2022 (ended Jan. 31), Zoom's total sales surged 55% to $4.1 billion, and its adjusted earnings per share climbed 52% to $5.07. The number of customers contributing more than $100,000 in annual recurring revenue (ARR) increased 66% year over year in the final quarter, reaching 2,725.

That said, investors can expect growth to unwind this upcoming year. Analysts predict that Zoom's top line will grow just 10% to reach $4.6 billion, and that its earnings per share (EPS) will retreat 30% to $3.53. This shouldn't shock investors given that COVID expedited Zoom's growth over the previous periods. But ultimately, the company is still poised for long-term success. Once post-pandemic comparisons normalize, Zoom's runway for growth becomes much clearer.

The company already owns almost 50% of the global video conferencing market. Given that the industry is forecasted to register a compound annual growth rate (CAGR) of 16% through 2028,  it's safe to say that Zoom is positioned to sustain its success moving forward. Trading below 20 times earnings today, investors shouldn't hesitate to pounce on this handsome tech stock.

2. Block

Block (SQ -3.08%), formerly known as Square, has emerged as one of the world's leading financial technology companies. Down almost 65% in six months, this stock is becoming more attractive by the day.

On the surface, the company's first-quarter performance wasn't exactly ideal. Its total sales of $3.96 billion missed Wall Street's expectations by 4%. EPS also fell short of consensus estimates, coming in 9% below expectations at $0.18.

That said, the company's long-term commercial prospects remain intact. Gross profit, which is a better indicator of the company's financial health given the fact that its top line is substantially impacted by fluctuations in Bitcoin, surged 34% year-over-year to $1.29 billion.

Cash App represents the focal point of Block's growth story. The evolving Cash App ecosystem, which began as a simplified peer-to-peer payment platform, has now grown to eclipse $624 million in first quarter gross profits. That translates to 26% year-over-year growth. 

The payments company currently trades below three times sales and is continuing to revolutionize the banking industry for consumers. Its growth path, coupled with its desirable financial position and lowering valuation today, makes the fintech company an appealing long-term investment.

3. Shopify

Shopify (SHOP 0.58%) shares have crashed 77% in the past six months, making the global e-commerce leader an enticing buying opportunity. Similar to Block, Shopify's recent quarterly results were run-of-the-mill at best. First quarter revenue of $1.2 billion missed consensus estimates by 3%, and EPS of $0.20 dramatically failed to satisfy Wall Street's expectations of $0.87. 

COVID-19 led to inflated growth for the e-commerce stock as business owners counted on its services to grow and manage their companies during shutdowns. The economic reopening, combined with shifts in consumer spending due to inflationary pressures, could temporarily halt Shopify's growth in the near-term. Even so, the company's prospects remain in line, and investors can take advantage of this latest pullback by purchasing the stock at the attractive current levels.

Shopify commands nearly one-third of the e-commerce platform market in the United States, with competitors WooCommerce Checkout and Wix.com (WIX -3.55%) serving as distant runners-up. Advantageously, the company leads the way in an industry boasting $160 billion of market potential, and it has only captured 3% of the revenue opportunity up to this point.

Currently trading at nine times sales, eminently lower than its five-year average price-to-sales multiple of 33, shares of the e-commerce juggernaut are screaming "buy me" today.