More often than not, a steep decline in a company's share price points to structural problems with its business that might be difficult to overcome. Then there are those occasions where a stock price drop has less to do with the company and more to do with outside forces it has no control over.

The last few years have been jam-packed with distortions in the financial markets. Investors navigated the pandemic and a flood of U.S. government stimulus followed by 40-year highs in inflation and the most aggressive campaign to hike interest rates in the U.S. Federal Reserve's history. As a result, many individual stocks were swept up in a buying frenzy throughout 2020 and 2021, followed by a crash back to Earth in 2022.

Some of these stocks are still trading down heavily today, despite being underpinned by relatively strong businesses. For instance, shares of DigitalOcean (NYSE: DOCN) and  (NYSE: SNAP) trade about 67% and 87%, respectively, below their all-time highs. Here's why that presents a major buying opportunity for investors. 

Continue reading

Source Fool.com