It is very challenging to predict what the markets will do from one year to the next, but there are plenty of solid companies that look ripe for the picking right now. Some of the best to consider are growth stocks that fell hard this year but still possess qualities that set them up for long-term success.

Three Motley Fool contributors recently weighed in on which stocks they believe could rebound over the next year. Let's find out what's in store for Chewy (CHWY -1.51%), Revolve Group (RVLV -2.22%), and Etsy (ETSY -1.41%).

The new e-commerce juggernaut

John Ballard (Chewy): Pet owners love their furry friends like their own children, and Chewy is emerging as the most convenient way to buy essentials like pet food. Revenue has nearly doubled over the last three years to $9.5 billion, and the company's investments in infrastructure, services, and widening its product selection should pave the way for many more years of growth as the leading brand in this market.

Chewy is standing out from the rest of the retail industry in this challenging economic environment. The company delivered double-digit sales growth and higher margins through the first half of the year. That performance reflects the priority pet owners place on taking care of Sparky no matter what's happening in the economy.

The best reason to invest in Chewy is over 70% of its revenue comes from a subscription program, where customers can have their preferred pet food automatically shipped at regular intervals. Autoship sales were up 18% through the first half of the year. These loyal customers are a gold mine for the company to cross-sell additional services, such as healthcare needs, where management continues to invest. 

The stock's 64% fall from its all-time high brings the valuation down to an attractive entry point for investors. The price-to-sales ratio is currently 1.8, which is right in line with how investors valued Amazon in its early years of growth. I believe this is a great opportunity to buy the stock for the long term, and given the recurring revenue that Autoship provides, Wall Street will eventually come around and push the stock higher.

The next big thing in fashion

Jennifer Saibil (Revolve Group): Revolve Group is a fashion company that's completely different from the traditional apparel companies, and its high-tech features and social media savvy are resonating with its core customer groups of millennials and Gen Z shoppers. Its stock is down this year because it faces tough comps from 2021 and a challenging economic climate, and that means it's well positioned to skyrocket from its lows in 2023.

Revolve uses artificial intelligence to power its business from all aspects, from its back-end operations through the curation of its product line. It's been honing its business for nearly 20 years, with thousands of data points that inform its systems, and this has helped it demonstrate high growth while scaling with efficiency and posting profits. Although growth has been slowing down, it remained in the double digits in the 2022 third quarter with sales 10% above last year's levels. Profits declined $16.7 million to $12 million but stayed in the green.

The exciting reasons to buy Revolve stock, though, are all about its future potential. This is still a fairly small company, with just over $1 billion in trailing-12-month revenue. But it's performing far better than most of its peers. It's completely online, which takes out the heavy rental costs most retailer apparel companies have to pay for physical stores. And since it relies on artificial intelligence, it knows quickly what styles are selling and which ones aren't, allowing to be agile with its inventory and showcase the right products to move merchandise. This also gives Revolve the ability to sell more items at full price, and all of this together contributes to more efficiently turning sales into profits.

It's definitely feeling the pinch of the pressured economy, and slowing sales growth is dragging down its stock price. These are temporary factors that aren't indicative of problems with Revolve's business; if anything, its robust performance despite the challenges illustrates its strengths.

Revolve Group stock is down 54% this year, and shares trade at more attractive valuations than they have in the past. Revolve has enormous potential, and as starts to lap the lower 2022 comps next year, along with the rise of a new year and a fresh economy, Revolve stock could skyrocket.

Primed for a comeback

Jeremy Bowman (Etsy): Like a lot of other e-commerce stocks, Etsy shares surged during 2020 and 2021 only to fade this year as the company faced difficult comparisons and consumer spending habits shifted toward services like travel and restaurants.

Etsy stock has already rebounded significantly from its earlier lows, but there are a number of reasons why the stock could move higher in 2023.

First, after four straight quarters of triple-digit revenue growth, the company will face much easier comparisons in 2023 following sluggish growth last year. Revenue growth has accelerated over the last two quarters, and the company should also benefit from more favorable currency translation because the stronger dollar also weighed on its performance. In 2021, 42% of its gross merchandise sales came from international markets.

Etsy also has a scalable model through its two-sided marketplace, as the company collects commissions from sales on its platforms and charges other fees to sellers. Its adjusted EBITDA margin increased every year from 2018 to 2021, reaching 31% last year, and while it's fallen slightly in 2022 thanks to flat growth, it should return to growth as sales rebound.

CEO Josh Silverman noted that the company uses a variable cost business model, meaning it's less at risk of seeing profitability declining because its spend on marketing and other categories is based on revenue.

Finally, while Etsy sells mostly discretionary items, it might be able to withstand a recession better than most investors think. The platform might well attract new sellers looking for side hustles as they try to make ends meet in a tougher economy, and that could boost traffic in a way that would help Etsy's sales.

If the company can demonstrate solid growth on the top and bottom lines next year, the stock is likely to benefit from multiple expansion. It currently trades at roughly 25 times adjusted EBITDA.

Over the long term, the company looks well positioned, with a unique niche in a large addressable market.