A lot of stocks that began the year trading at double and in some cases triple digits have fallen out of favor. Figs (FIGS 1.02%) and Carvana (CVNA 0.68%) are two stocks that have declined sharply this year, but don't let their single-digit prices scare you away. Both companies are shaking up their respective industries. 

With Figs and Carvana down 72% and 96%, respectively, in 2022, a lot of the early bulls have been scared away. Investors with big paper losses on the two names might unload their positions this month to lock in tax breaks on the deficits for this year. However, the prospects are brighter for the investments in 2023. Let's see why now could be a good time to consider buying these two low-priced stocks that everyone is selling.  

A hand stacking coins in a garden.

Image source: Getty Images.


Growth investors should always look for disruptors. Find a company that's upending a stodgy industry, and there's an opportunity to score generational wealth if the revolution bears fruit. Figs may seem like an unlikely disruptor, and like Carvana it's been a dud this year. The seller of scrubs for medical workers has plummeted 72% in 2022. Someone hand me a scalpel and sponge. We're going in to fix things. 

Scrubs have been sold on the basis of safety and function for ages. Figs arrived with a flair for fashion. Its medical apparel is stylish, colorful, and flattering. You think medical pros putting in long hours in a shift to help patients heal don't care at least a little about their own appearance? Figs is probably the only healthcare and lifestyle brand that folks outside of the medical community know as a result of the company's splashy marketing campaigns for its online offerings. And it's working.

Revenue rose 25% in its latest quarter. Its active-customer count has risen 24% to 2.2 million. These aren't small orders when they come in, as the average order value is $112 (up 10% over the past year). Margins have come under pressure lately for the same expense-rising reasons we've seen across the apparel universe, but Figs remains profitable.

It's fair to say that its customers could hold back on orders if the economy continues to worsen, but medical offices and hospitals need to remain staffed in all economic climates. 


It was a growth streak for the ages. Carvana rattled off 23 consecutive quarters of triple-digit revenue growth, coming to a screeching halt in 2020 when the pandemic made us homebound. Springing for a car -- even a used one -- wasn't a top priority. Things somehow got worse, now that we're driving again, as high gas prices and recessionary fears are holding us back from making big-ticket automobile purchases. 

Making matters worse, Carvana is a victim of its own success. It leveraged itself to expand quickly across the country with its unique approach to selling secondhand rides, and those nine-story glass-enclosed car vending machines aren't cheap. With interest rates rising, carrying $6.6 billion in debt is a literal and figurative liability when you're losing money. 

This isn't starting off as a very bullish pitch, but now is a good time to point out that the stock is down a blistering 96% in 2022. Naturally, it should be sharply lower; it's been a rough year. After years of triple-digit top-line gains, it saw revenue clock in with a 3% year-over-year decline in its latest quarter. Carvana also hosed down its near-term guidance. 

It's a tricky time. Used car prices that climbed last year when there were supply chain shortages have fallen now that showrooms are loaded with new inventory again. We've gone from one extreme to the other, but things should improve at this point.

Carvana's leverage makes it a very risky stock at the moment, but the ceiling is as high as an open sunroof. The stock would be a 30-bagger if it just gets back to where it was at the beginning of the year.