Who in the investing world isn't seeking out promising growth stocks to add to their long-term portfolio? Well, I suppose some are not. They may be focused on dividend-paying stocks, which is actually a very good investing strategy. But growth stocks, which tend to rise at a faster-than-average clip, are certainly enticing -- and they may help you reach your financial goals more quickly.
Some growth stocks have grown so fast that their valuations now seem sky-high. Think, for example, of Palantir Technologies, with a recent price-to-earnings (P/E) ratio of 460. Such stocks could keep growing, of course, but they also stand a decent chance of pulling back in the near term.
Image source: Getty Images.
Thus, it can be effective to search for promising growth stocks among those that have fallen in value, as they can present more appealing valuations. And with the stock market recently swooning, there are some attractive growth stocks out there.
Here's a look at four such companies, each of which has seen its shares tumble at least 20% over the past month. Check out the carnage below:
| Stock |
1 Month |
3 Months |
Year to Date |
1 Year |
|---|---|---|---|---|
|
Block (XYZ 0.13%) |
(26.5%) |
(32%) |
(28.2%) |
(25.1%) |
|
The Trade Desk (TTD +2.96%) |
(26.2%) |
(55.3%) |
(52.5%) |
(33.1%) |
|
Accenture (ACN +0.31%) |
(21.8%) |
(17.5%) |
(14%) |
(19.5%) |
|
MongoDB (MDB 0.07%) |
(34.7%) |
(22.9%) |
(18.7%) |
(47.3%) |
Data source: Morningstar.com as of March 20, 2025.
1. Block
Block is a stock you may know by its previous name, Square, or its previous ticker symbol, SQ. It's the same business, a fintech (financial technology) enterprise encompassing businesses such as Square, Cash App, TIDAL, and TBD. Its 30-plus products help businesses and consumers spend, transfer, or invest money -- even in cryptocurrencies -- among other things.
Block's stock has fallen so much that it was recently near its price in 2018. Its recent fourth-quarter report fell short of expectations, with revenue only growing by 4.5% year over year. Still, it is growing, and earnings per share (EPS) were up 51%. It may not soar this year, but it has promising technologies that could make the stock a long-term winner.
2. The Trade Desk
The Trade Desk was a market darling for a while, but its stock has headed south recently. Its flagship offering is a programmatic advertising platform that lets advertisers plan, execute, and optimize digital ad campaigns. In this arena, it has been the top dog, but its recent earnings report so spooked investors that they sent the stock down by 41% in February.
NASDAQ: TTD
Key Data Points
What's going on? Well, many think the market's reaction was overblown, as The Trade Desk's revenue was still up 22% year over year, with non-GAAP (adjusted) income popping by 44%. CEO Jeff Green cited a "series of small execution missteps" that led to the underperformance, and listed corrective steps being taken.
There's a lot of hope for this company. For example, streaming services are showing more ads, which can boost The Trade Desk's business. And while it does face some big competitors, it's the biggest independent advertising platform of its kind.
3. Accenture
Accenture may not be a household name, but it's a huge professional services company, operating around the globe with roughly 774,000 employees working in business consulting, and technology services, among other things. Its stock may be down nearly 20% over the past year, but it has been a strong performer for many years, with annual gains of 16.5% over the past five years and 15% over the past 15 years.
NYSE: ACN
Key Data Points
Accenture's recent earnings report had a few red flags, such as a drop in new bookings growth. That sent its stock south -- not quite to bargain-basement levels, but levels more attractive than they used to be. There's a lot to like about Accenture, such as its new software suite built on technology from Nvidia -- and its growing dividend that recently yielded 1.8%.
4. MongoDB
Database specialist MongoDB has recently delivered top- and bottom-line growth, but some investors are worried about its customers spending less in the current uncertain economic environment. Its solid fourth quarter featured revenue up 20% year over year and customer growth, too. Its cloud platform, Atlas, delivered 71% of the quarter's revenue. MongoDB is investing in artificial intelligence (AI), too, like many companies, though it remains to be seen exactly how well this will improve its fortunes.
NASDAQ: MDB
Key Data Points
With a strong balance sheet and a low valuation, MongoDB is worth a closer look from long-term investors. Each of these companies is worth a closer look, actually. They may not surge today or tomorrow, but each has the potential to deliver above-average gains in the years to come. Note, too, that if you're not confident enough to pick individual growth stocks, you can always opt for exchange-traded funds (ETFs) focused on growth.
