3 Growth Stocks Down 30% to Buy Right Now
Key Points
DoorDash's business is humming along nicely despite its steep decline.
ServiceNow is a victim of the "SaaSpocalypse," but its sell-off appears to be way overdone.
Toast's valuation with growth prospects factored in looks attractive after its significant pullback.
- These 10 stocks could mint the next wave of millionaires ›
What goes up can go down. We've seen that adage come true with quite a few stocks in recent months. But can what comes down also go back up? Absolutely, at least in some cases.
Some of the sell-offs appear to be overdone. Here are three growth stocks down 30% (or more) to buy right now.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
1. DoorDash
Like millions of people around the world, you're probably already familiar with DoorDash (NASDAQ: DASH). The company is best known for its app that lets you order food from a wide range of restaurants and have it delivered to your door. However, DoorDash also now supports ordering from grocery stores and retailers.
DoorDash's share price has plunged roughly 38% from its October 2025 peak. The general backlash against high-multiple internet stocks is a key factor behind this sharp decline. DoorDash has also faced regulatory hurdles in major markets such as Seattle, creating headaches.
But DoorDash's business continues to hum along nicely. The company's revenue jumped 38% year over year in the fourth quarter of 2025 to $29.7 billion. Its earnings soared 51% year over year to $213 million.
I think DoorDash's diversification into higher-margin businesses, including third-party retailer fulfillment services, makes its value proposition more compelling. The company's acquisition of Deliveroo also opens a massive opportunity in Europe. This beaten-down stock looks like a fantastic pick to buy on the pullback.
2. ServiceNow
ServiceNow (NYSE: NOW) isn't the household name that DoorDash is. However, over 8,800 businesses (including over 85% of the Fortune 500) use the company's AI-powered enterprise workflow platform.
This stock is one of multiple victims of the "SaaSpocalypse" -- a massive sell-off of SaaS stocks. ServiceNow's share price is now nearly 50% below its record high achieved last summer. Many investors have engaged in panic selling on fears that AI will disrupt the SaaS business model. Comments such as Mistral AI CEO Arthur Mensch's prediction that "more than half of what's currently being bought by IT in terms of SaaS is going to shift to AI" have stoked the fire.
ServiceNow CEO Bill McDermott addressed the issue head-on in the company's Q4 earnings call. He said, "The speculation of AI will eat software companies is out there. Let's clear it up with the facts. Enterprise AI will be the largest driver of return on the multitrillion-dollar super cycle of investment in AI infrastructure." I believe that he could be right.
McDermott is putting his money where his mouth is by buying $3 million of ServiceNow stock. He and other company executives have also halted their scheduled stock sales under Rule 10b-51 plans. Those moves could pay off handsomely over the next few years, in my view.
3. Toast
If you've gone out to eat lately, there's a pretty good chance you have interacted with Toast's (NYSE: TOST) products, even if indirectly. 112,000 restaurants use the company's software platform to support processes including point of sale, payments, digital ordering, marketing, and more.
The so-called "SaaSpocalypse" has also hit Toast hard. Its shares have plummeted 44% from their August 2025 peak. But I think it's unlikely that restaurant owners will adopt vibe coding to build AI apps to run their businesses.
They certainly aren't doing so at this point. Toast added 30,000 new restaurant locations in 2025, with around 8,000 additions in the fourth quarter. Its annualized recurring run rate (ARR) jumped 26% year over year to $2 billion as of the end of 2025. The company's profits tripled year over year in Q4 to $101 million.
Toast's growth prospects look as strong as ever, in my opinion. The company is expanding into new verticals, including food and beverage retail. It's also targeting restaurants outside the U.S. It's probably a stretch to call Toast a value stock, but its valuation appears enticing with a super-low PEG ratio of 0.25.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $492,341!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $50,381!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $424,262!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
See the 3 stocks »
*Stock Advisor returns as of February 23, 2026.
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash, ServiceNow, and Toast. The Motley Fool has a disclosure policy.
Recommended Articles
