3 Ridiculously Discounted Growth Stocks to Buy Now

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Investing

24/7 Wall St.

  • Buying beaten-down stocks allows investors to purchase high-quality companies at bargain prices, capitalizing on market overreactions.

  • Warren Buffett’s advice to “be greedy when others are fearful” underscores the value of investing in strong businesses during temporary setbacks.

  • Despite high market indexes, the three growth stocks discussed offer compelling value and growth potential at current valuations.

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Digging Into the Bargain Bin

Investing in beaten-down stocks can be a savvy strategy for long-term wealth creation, as it allows investors to buy high-quality companies at bargain prices. When market sentiment sours or short-term challenges cloud a stock’s outlook, prices can dip below intrinsic value, offering a window for patient investors. 

Warren Buffett famously said, “Be fearful when others are greedy, and greedy when others are fearful.” This approach hinges on identifying fundamentally strong businesses with temporary setbacks, poised for recovery and growth. By focusing on companies with durable competitive advantages, robust financials, and clear growth paths, investors can capitalize on market overreactions. 

While the broader stock market may appear pricey, with indexes like the S&P 500 repeatedly hitting all-time highs, pockets of value remain. The three growth stocks below, despite their strong fundamentals, are trading at absurdly cheap valuations and present compelling opportunities for investors to buy now.

ASML Holdings (ASML)

ASML Holdings (NASDAQ:ASML) is the leading photolithography equipment manufacturer for the semiconductor industry. It is a cornerstone of technology stocks because it enables the production of advanced chips for artificial intelligence (AI), 5G, and more. 

Despite its critical role, ASML’s stock has faced pressure from cyclical semiconductor demand and export restrictions, leading to a discounted valuation. The company’s extreme ultraviolet (EUV) lithography machines are unmatched, giving ASML a near-monopoly in this high-demand niche. 

With the global chip shortage easing but AI and cloud computing driving long-term demand, ASML’s order book remains robust, with the company projecting 9% annual growth through 2030. It just beat analyst earnings expectation, but ASML stock is tumbling 11% because it can’t confirm 2026 revenue growth due to increased macroeconomic uncertainty, although it stopped short of pulling its guidance. 

Trading at a forward P/E of around 24, significantly below its 39x five-year average, ASML offers a rare chance to buy a tech titan at a discount. Its dominant market position and exposure to secular growth trends make it a compelling pick for patient investors seeking growth at a reasonable price.

Novo Nordisk (NVO)

Drug manufacturer Novo Nordisk (NYSE:NVO) is a global leader in diabetes care and obesity treatments. Its stock pulled back due to concerns over pricing pressures and competition in the GLP-1 drug market. but its blockbuster drugs Ozempic and Wegovy continue to drive strong revenue, though it recently reduced its sales growth outlook by three percentage points to a range of 13% to 21% for the current year. Its pipeline, including next-generation obesity and diabetes therapies, positions it to maintain leadership in a market projected to surpass $100 billion by 2030. 

Trading at a forward P/E of 14, also well below its five-year average of 31x, NVO is undervalued relative to its growth potential. Novo’s strong brand, global distribution, and R&D investments ensure long-term resilience. 

As healthcare spending rises and obesity remains a global health crisis, Novo Nordisk’s growth trajectory remains intact, making its current valuation an attractive entry point for investors seeking exposure to the booming biopharma sector.

Hims & Hers Health (HIMS)

Hims & Hers Health (NYSE:HIMS) is a telehealth platform offering personalized solutions for wellness, mental health, and chronic conditions. It has been overlooked amid market volatility, trading at a forward P/S ratio of under 6, a steal for a high-growth healthcare disruptor whose five-year average has trended towards 15x. 

The company’s subscription-based model, focusing on accessible treatments for conditions like hair loss, erectile dysfunction, and mental health, has driven over 50% revenue growth annually, with expanding margins as it scales. 

HIMS serves a growing demographic seeking convenient, stigma-free healthcare, and its recent foray into weight-loss treatments taps into a massive market. Despite short-term concerns over telehealth regulation and competition, HIMS’ low-cost, digital-first approach and loyal customer base provide a strong moat. With profitability on the horizon and a rapidly expanding addressable market, HIMS is a high-upside growth stock trading at a valuation that significantly understates its long-term potential.

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