These 3 Beaten-Down Growth Stocks Look Like Long-Term Comeback Candidates

Consumer goods companies have been under pressure as shoppers pull back on spending amid higher prices. This has created volatility in the stock prices for leading brands in the sector, including those that are still reporting solid financial results.

But near-term macro headwinds give patient investors the chance to own top growth stocks at attractive discounts, setting up attractive returns over a longer time period. Here are three beaten-down growth stocks worth buying now.

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1. Chewy

Chewy (NYSE: CHWY) continues to see growth in its active customer base, helping to deliver another solid quarter of sales growth. In the recent quarter, it added over 200,000 net customer additions and reported a 7.7% year-over-year sales increase. It operates in a large pet industry, providing ample runway for this leading pet food supplier to expand.

Despite inflation, pet owners are still expected to spend $165 billion this year, up from $158 billion in 2025, according to the American Pet Products Association. That shows an enormous opportunity for Chewy, which generated $12.8 billion in trailing-12-month revenue.

The company benefits from a loyal customer base. Over 84% of net sales are driven through its autoship program. It is also pushing into pet healthcare services such as Chewy Vet Care clinics. This can strengthen its competitive position while also layering in a more profitable sales stream.

Near-term pressure on consumer spending is a headwind to watch in 2026. But for a patient investor, Chewy looks undervalued. The stock trades at just 12 times forward earnings, with analysts currently expecting 32% annualized earnings growth over the next several years.

2. Cava Group

Cava Group (NYSE: CAVA) is tapping into pent-up demand for Mediterranean-style eating in the fast-casual restaurant industry. The stock has rebounded year to date, but is still trading well off its all-time high from a few years ago.

Cava's recent performance looks quite strong in a weak consumer spending environment. Same-restaurant sales have increased in every quarter the past two years. Same-restaurant sales jumped 9.7% year over year in the recent quarter -- a significant improvement over 0.5% in the previous quarter.

It has a long runway of growth. Chipotle Mexican Grill has over 4,100 restaurants, while Cava ended the recent quarter with just 459. This indicates ample opportunity for Cava to expand and deliver market-beating returns to shareholders.

The stock looks expensive on a price-to-earnings basis, but on a forward price-to-sales basis, it is more reasonably priced at 7 times. Cava is profitable but should see improving margins as it expands across the U.S. If it meets analysts' expectations for earnings growth of about 26% annually in the coming years, the stock could outperform the broader market.

3. e.l.f. Beauty

e.l.f. Beauty (NYSE: ELF) has become a very popular brand by offering high-quality beauty products at affordable prices. It just posted its seventh straight year of market share gains, with net sales surging 25% in fiscal 2026.

The stock is down 22% year to date and trading at a forward P/E of 18. The dip reflects uncertainty around macro headwinds impacting consumer spending. However, e.l.f. continues to post solid results.

The company is leveraging its popular cosmetics brand to expand to more product categories. It is seeing explosive growth in skincare from Rhode, the Hailey Bieber line it acquired last year, and Naturium. Management sees significant opportunities ahead for its skincare business, which is gaining share in a highly competitive market.

One reason the stock is down is lower margins from tariffs. Management is also investing in growth initiatives, which have increased operating expenses. But in the long term, the company should see healthy margins. Its trailing-12-month free cash flow improved to $190 million.

The focus on near-term headwinds in the economy has lowered investor expectations, as analysts are calling for just 10% annualized earnings growth. This seems too conservative given the brand's popularity and its potential for international expansion. The stock's relatively modest valuation sets up a compelling buy-the-dip opportunity.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cava Group, Chewy, Chipotle Mexican Grill, and e.l.f. Beauty. The Motley Fool recommends the following options: short June 2026 $36 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.