1 Beaten Down Growth Stock to Buy, and 1 to Avoid
Plenty of growth stocks fell out of Wall Street's good graces over the past two months as the market got caught in a slump. It's not all that surprising given that concerns about a potential recession are once again elevated. The potential for more interest rate hikes also raises financial risks for companies that can't fund their growth investments through their own cash flow.
But this latest downturn, in most cases, shouldn't threaten the long-term thesis for a growth-focused company with the right fundamentals. That means investors have real potential to secure market-beating returns by picking up shares at a discount.
RH (NYSE: RH) and Roblox (NYSE: RBLX) are two good examples of formerly high-flying stocks that have come down in recent weeks. RH is a luxury home furnishings specialist that might struggle during a pullback in consumer spending. Roblox runs a popular digital-entertainment platform that's exposed to slowing demand for its virtual currency.
Source Fool.com
