15 Promising Stocks That Have Fallen 60% or More This Year

Market downturns can be very unsettling for investors, even experienced ones who have lived through previous ones. But they have a very big upside: lower stock prices. If there are any companies you'd love to own shares of, there's a good chance you can buy into them at lower, or possibly much lower, prices after the overall market has headed south.

Here are 15 companies worth considering for your portfolio. They're not universally and unanimously loved, but that's normal -- those who study stocks are rarely in full agreement about any stock. They do have plenty of promise, though, so see which ones you'd like to learn more about. Each has fallen at least 60% from its 52-week high, though some may have recovered somewhat by the time you read this.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Under Armour (NYSE: UA) (NYSE: UAA) has grown into a major player in the athletic apparel department, with a well-known brand. The company's shares have fallen as much as 64% from their 52-week high, in part because of the overall market downturn. But there's more that's pressuring shares. The company has been facing some challenges, and a CEO hired to turn the business around stepped down recently and unexpectedly. Interim CEO Colin Browne, formerly the company's COO, recently shared plans to tackle a turnaround again, aiming to invest heavily in segments that are already growing while trying to expand its customer base to less committed athletes. If you believe that the company's brand and leadership can build its value beyond the recent $4 billion market value, give Under Armour some consideration.

Shares of Etsy (NASDAQ: ETSY) were recently down as much as 65% from their 52-week high. The company is known for its online marketplace specializing in handmade and vintage items, but there's more to it. It has built a "House of Brands," after buying the popular used clothing marketplace Depop, the musical instrument marketplace Reverb, and the Brazil-based Elo7 marketplace of handmade goods. Along with the overall market downturn, Etsy has been challenged by life returning to more like normal after many months of consumers staying home during the pandemic and buying many items (such as handmade masks) online. In its second quarter, Etsy reported revenue up 10.6% year over year, but gross merchandise sales were roughly flat.

ALSO READ: Is Etsy Stock a Buy After Q2 Earnings?

Many investors may have never imagined that Netflix (NASDAQ: NFLX) shares could tumble as much as 67% from their 52-week high, but that's just what they've done. It's not the first time the stock has crashed, either -- it also happened, for example, in 2011, when the stock plunged 35% in a single day after a quarterly report revealed a loss of 800,000 customers due to the company splitting its streaming and DVD businesses and raising prices. This time, the key issue is subscriber growth stalling, with many no longer seeing the company as the inevitable dominator in the streaming arena. Still, don't count Netflix out, as it is still a streaming titan, exploring additional revenue drivers, such as streaming games and profiting from password sharing.

PayPal (NASDAQ: PYPL) is a force in digital payments, not only boasting the widely used PayPal platform but also the popular Venmo app -- along with Zettle, Xoom, Hyperwallet, Honey, and Paidy (among other businesses). Its stock was recently down as much as 68% from its 52-week high, but it's not likely to stay down too long. Its growth may be slowing as it has grown so big (its recent market value topped $110 billion, and that's after the 68% drop), but it's still an active and growing transaction processor. As of its second quarter, it boasted 429 million active consumer and merchant accounts, $340 billion in total payment volume, and 5.5 billion transactions. That quarter also featured revenue up 9% year over year, though earnings dipped. Free cash flow popped 22%, to $1.3 billion.

ALSO READ: Is PayPal Stock a Buy After Solid Results and $2 Billion Investment by Elliott Management?

Zoom Video Communications (NASDAQ: ZM) may have a stock down as much as 73% from its 52-week high, but it's been a favored growth stock for a few years now, thanks to the pandemic-fueled trend of people working from home driving the growth of its services. There's more to Zoom than just the video group conferences we are all now so familiar with, though. It's working on and rolling out new services, building an ecosystem that will keep customers sticking around. Its Zoom phone already has some 3 million "seats," for example. In Zoom's first quarter, revenue was up 12% year over year, with nearly 200,000 new enterprise customers, reflecting 24% year-over-year growth. Net income dipped, though, but customer renewal rates have been strong.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Sea Limited (NYSE: SE) may not be a familiar company to many of us, but it's a rather big one, with big potential. Based in Singapore and with a recent market value near $50 billion, it's engaged in digital entertainment (via its Garena unit), e-commerce (via its Shopee site), and digital payments (via its SeaMoney business). These are big businesses, too -- in the company's own words, "Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan." The stock was recently down as much as 76% from its 52-week high, in part due to the company spending heavily to further its growth.

ALSO READ: 3 of the Cheapest Stocks I Own

Zscaler (NASDAQ: ZS), with a recent market value near $25 billion, is home to the Zscaler Zero Trust Exchange. It's touted as "the world's largest in-line cloud security platform" that "protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location." It's been performing well, with third-quarter revenue up 63% year over year and calculated billings rising 54%. The stock has fallen as much as 60% from its 52-week high this year, but has recently started gaining ground again.

Moderna (NASDAQ: MRNA) has become a household name, thanks to the COVID-19 pandemic and the widely used Moderna mRNA vaccine against it. As you might expect, the stock soared in the early months of the vaccine's release, before tumbling. The stock was recently down as much as 66% from its 52-week high, but we shouldn't be counting it out -- there are still many booster shots to be purchased and given, and the company has more than just coronavirus-related offerings under its roof. Moderna has 46 programs in development, with three non-COVID-19 programs in late-stage development.

DocuSign (NASDAQ: DOCU) is another company that got a huge tailwind from the pandemic, with many more people than ever using its digital signature service remotely. Those heady days are behind it now, and its stock was recently down as much as 78% from its 52-week high. But don't count DocuSign out. It says it has "more than 1,000,000 paying customers and over a billion users worldwide." It also has some new leaders and more offerings than just electronic signings. For example, there's its Analyzer, which uses artificial intelligence to help customers by summarizing key points in contracts. The company's facing some challenges now, but there remains great potential.

ALSO READ: Why DocuSign Crashed 31.6% in June

Teladoc Health (NYSE: TDOC) specializes in medical telehealth visits, which helped boost its shares mightily in the first year or so of the pandemic. Opinions vary widely as to whether its future is golden or murky. Bulls argue that it's still growing well, has more than 50 million paid memberships, and both cash flows and profit margins are growing. Bears worry about an unproven business model and a disappointing recent earnings report. Its shares were recently down as much as 77% from their 52-week highs, so if you're a believer, you can buy shares greatly reduced in price.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Many of us might want to thank Roku (NASDAQ: ROKU) for pioneering the streaming of television content. Today, with a recent market value of $11.5 billion, it says it's "the No. 1 TV streaming platform in the U.S., Canada, and Mexico by hours streamed" (as of a 2021 report). Roku's stock has recently been down as much as 80% from its 52-week high, making it much more attractively priced for those who expect plenty of growth from the company. That growth is likely to come from continued sales of its devices, new products and services, and original content on the its channel, among other possibilities. Roku's revenue grew 18% year over year in its second quarter, with management noting that, "While our revenue and gross profit growth have slowed, we continue to win advertising share and grow active accounts."

Upstart Holdings (NASDAQ: UPST) is an online lender, so part of the reason that its shares were down a whopping 93% from their 52-week high not so long ago is because interest rates have been rising and may continue to do so for a while. Rising rates mean that homebuyers will have to pay more for mortgages, which can depress enthusiasm for homebuying. There are reasons to consider not investing in Upstart now, such as its needing to tweak its business model, but if you see enough reason to be hopeful, you might consider taking a small position in it now, or adding it to your watch list, in case it falls further.

ALSO READ: Upstart Stock Sell-Off: 2 Reasons You'll Want to Buy the Dip

If you haven't been in the market for luxury electric vehicles (EVs), you may not have heard of Lucid Group (NASDAQ: LCID) -- as that's its business. Lucid's shares were recently down as much as 70% from their 52-week high, but there are ample reasons to expect them to recover and the company to grow -- such as a big backlog of orders and reservations continuing to come in. Why are shares down? The company made just 1,405 vehicles in the first half off this year, and it cut its production forecast in half for all of 2022, to just 6,000 to 7,000 EVs. Clearly, that's not good. Investors who believe in Lucid's long-term potential will need to be patient, perhaps only taking a small position now or waiting for more clarity or an even lower price.

Shopify has grown rapidly in recent years, recently valued at more than $50 billion in the market. It's an e-commerce specialist that helps businesses run online storefronts -- but the growth stock's growth has stalled, with shares recently off as much as 79% from their 52-week highs. Shopify made mistakes, such as overconfidence, spending too aggressively in growth, and perhaps expanding its scope too much. But some things bode well for it over the long run, such as continued growth in its gross merchandise volume, which has been outstripping that of retailers in general, along with a sound investment in helping its customers offer their customers multiple ways to buy.

ALSO READ: 1 Big Strategic Bet by Shopify That Went Wrong

Align Technology (NASDAQ: ALGN) is not an internet darling like many of the other companies in this group. It's focused on teeth and straightening them via its Invisalign technology, while also offering other orthodontic equipment and software. It notes, "Align has helped doctors treat over 13.4 million patients with the Invisalign system," and the company sees a market opportunity of 500 million potential customers. Its stock was recently off as much as 63% from its 52-week high, though, in part due to the ongoing pandemic pressuring the orthodontic market and unfavorable currency exchange rates for its considerable sales abroad. If you're a long-term believer in Align, this may be a good entry point.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

As you go through your investing life, evaluating companies in which you might invest, be sure to consider both the quality and long-term growth potential of any portfolio candidate, as well as the attractiveness of its current valuation. As Warren Buffett has said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." And of course, it's usually regrettable to buy into a great company at a bad price, paying so much of a premium that you have no margin of safety.

Selena Maranjian has positions in DocuSign, Etsy, Moderna Inc., Netflix, PayPal Holdings, Roku, Shopify, Teladoc Health, Upstart Holdings, Inc., and Zscaler. The Motley Fool has positions in and recommends Align Technology, DocuSign, Etsy, Netflix, PayPal Holdings, Roku, Sea Limited, Shopify, Teladoc Health, Under Armour (C Shares), Upstart Holdings, Inc., Zoom Video Communications, and Zscaler. The Motley Fool recommends Moderna Inc. and Under Armour (A Shares) and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2024 $60 calls on DocuSign, and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policy.