1 Fantastic Growth Stock Down 18% to Buy Right Now

For savvy investors, stock market corrections serve up money-making opportunities on a golden platter. That's because stock market corrections are indiscriminate, dragging down the prices of stocks both good and bad.

With that in mind, let's take a closer look at one fantastic growth stock that has plummeted by more than 20% in recent weeks but remains a solid long-term buy-and-hold candidate: Meta Platforms (NASDAQ: META).

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Image source: Getty Images.

What's Happened to Meta?

Just over a month ago, Meta's shares were in the midst of a historic run higher. The stock logged 20 straight days of gains before finally pulling back on Feb. 18.

However, in the sessions that followed, the stock gave back all of those gains and then some. As of this writing, shares of the social media giant remain about 21% off their all-time high of around $741 per share, and off by a bit more than 1% year to date.

So what happened at Meta to bring on such a significant sell-off?

The short answer is: nothing all that consequential.

Sure, there have been some negative headlines. A whistleblower has alleged that Meta worked with the Chinese government to censor material on its platform. However, given that the whistleblower left the company in 2017, her allegations may not be indicative of the company's current policies.

At any rate, the headwind that has had a far larger impact on the stock recently has been the general turn in market sentiment. Concerns stemming from tariffs, weaker-than-expected economic data, and the course of monetary policy have all combined to push the stock market down in recent weeks.

Is now the time to load up on Meta shares?

Take a look at this chart of Meta's share price and price-to-earnings ratio over the past three years:

META data by YCharts.

Crucially, there were several particularly opportune times to buy shares that were signaled in advance by the movements of Meta's P/E ratio.

The first of these periods occurred in late 2022 and early 2023, as its P/E ratio bottomed at around 8. It then surged higher, passing 24. The next four opportunities came in 2024, as the company's P/E ratio repeatedly retreated to its three-year average of around 24. Each time its P/E sank to around 24, it proved to be a great buying opportunity -- the stock price moved up significantly in the weeks and months that followed.

Meta's P/E ratio has once again fallen nearly to that key level of 24. As of this writing, it stands at 24.2. Recent history suggests this could be a smart moment for opportunistic investors to load up on shares.

Meta shares still look attractive for long-term investors

In summary, Meta's shares have tumbled not because of poor execution by the company, but because of macroeconomic concerns that are beyond its control.

That slide presents an excellent entry point for long-term investors who want to own this fantastic growth stock because of its massive user base, fat profit margins, and ample free cash flow.

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 $304,759!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $40,808!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $517,445!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

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*Stock Advisor returns as of March 18, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.