2 Stocks Down 52% and 30% to Buy Right Now

Source The Motley Fool

The stock market has been under pressure in 2025. Catalysts including China's DeepSeek R-1 model, trade war concerns, and other sources of macroeconomic uncertainty have all caused big sell-offs, and the S&P 500 index is down roughly 9% even after regaining some ground recently. Meanwhile, the more growth-oriented Nasdaq Composite index is down approximately 13.5% across that stretch.

While investors should be mindful of the added uncertainty and risks that can come with investing amid a volatile market backdrop, this year's sell-offs could create opportunities to build positions in stocks that can generate great returns over the long haul. With that in mind, read on to see why two Motley Fool contributors think these stocks are good buys after big valuation pullbacks in 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Keith Noonan (Reddit): Reddit (NYSE: RDDT) stock plummeted in February after the company published fourth-quarter results that arrived with weaker-than-expected user engagement metrics. The company's share price then continued to move lower in conjunction with trade-war developments and geopolitical risks. On the heels of these pressures, the stock is now down 52% from its high this year.

Despite the sell-off, Reddit managed to grow revenue 71% year over year to reach $427.7 million in the fourth quarter. Meanwhile, daily average unique users (DAUq) still increased 39% year over year to 101.7 million. That figure came in below the 103.1 million DAUq count called for by the average Wall Street estimate, but it still represented strong growth. Following its recent valuation pullback, Reddit stock looks like an underappreciated artificial intelligence (AI) play.

Crucially, Reddit has emerged as a popular search platform and results destination, because the platform houses a wide repository of user generated answers to questions, and good answers to questions are typically given priority thanks to a voting system.

Reddit is also licensing its data for application programming interfaces (APIs) and the training of AI models, allowing customers to access real-time data streams of information from the platform for use in behavioral analysis and building applications and algorithms. Citing a report from International Data Corporation, Reddit sees the market for AI (excluding China and Russia) growing at a 20% compound annual growth rate from 2024 through 2027 and reaching $1 trillion at the end of the forecast period.

The company is using AI to make the content it delivers to users safer and more relevant, and it plans to make additional moves to promote localized content to users on its platform. In doing so, management thinks that it can help bolster its growth internationally and expand its reach around the globe. With the stock still down big, Reddit looks like a worthwhile investment ahead of the publication of its first-quarter results on May 1.

Near-term headwinds for Hexcel remain, but so does long-term growth

Lee Samaha (Hexcel): Hexcel (NYSE: HXL) stock is down 30% from its high in 2025, and it's not hard to see why. The lightweight carbon fiber composite company's sales are a function of its customers' production, and its two largest customers are Boeing and Airbus, as well as their suppliers. That's wonderful when their production rates are booming, but not so good when supply chain issues are causing airplane production slowdowns.

Indeed, as Hexcel's CEO Tom Gentile said on the recent first-quarter earnings call, "2025 is turning out to be another year in which production rate increases for commercial aircraft will not meet initial expectations due to ongoing supply chain disruption."

As such, on the earnings call, Hexcel lowered its full-year sales, earnings, and free cash flow (FCF) guidance. The culprit is the Airbus A350 program, where Hexcel started the year expecting to deliver 84 shipsets of composites (each shipset on the A350 is worth $4.5 million to $5 million) to Airbus in 2025, but now expects to deliver just 68. It's not good news, and the market wasted no time pricing it in.

But here's the thing: Boeing and Airbus still have multiyear backlogs. Moreover, as Gentile noted, Hexcel can already support higher production rates. This means its cash flow will grow significantly when sales start improving, with an eventual increase in airplane production, because it doesn't need to ramp up capacity significantly.

The company also tends to source locally for its production in the U.S. and Europe, so tariffs, as they stand, aren't a significant issue (management estimates a hit of $3 million to $4 million a quarter, which it can offset with productivity improvements). Finally, the revised guidance for 2025 of adjusted diluted earnings of $1.85 to $2.05 and FCF of $190 million leaves the stock trading at about 25 times earnings and 20 times FCF in 2025. That's a good value for a stock with excellent long-term growth prospects.

Should you invest $1,000 in Reddit right now?

Before you buy stock in Reddit, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reddit wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Keith Noonan has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Hexcel. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US September CPI preview: inflation set to hit 3.7% — will the Fed hike in December?US September CPI lands Wednesday with headline inflation seen at 3.7% y/y and core at 0.2% m/m. December hike odds sit near 70% — here are the scenarios, the calendar and the key levels.
Author  Irene Q.
Oct 10, Sat
US September CPI lands Wednesday with headline inflation seen at 3.7% y/y and core at 0.2% m/m. December hike odds sit near 70% — here are the scenarios, the calendar and the key levels.
placeholder
Bank earnings kick off tomorrow with the S&P 500 seven points from a record — what JPMorgan, Goldman, Citi and Wells Fargo must proveQ3 earnings season starts Tuesday with JPMorgan, Goldman Sachs, Citigroup and Wells Fargo reporting before the open — with the S&P 500 just 7 points from its record close, bank stocks down 7.5% over the past month, and September CPI landing the next day. Here are the numbers to watch, the two-sided setup and the levels that matter.
Author  Irene Q.
Oct 12, Mon
Q3 earnings season starts Tuesday with JPMorgan, Goldman Sachs, Citigroup and Wells Fargo reporting before the open — with the S&P 500 just 7 points from its record close, bank stocks down 7.5% over the past month, and September CPI landing the next day. Here are the numbers to watch, the two-sided setup and the levels that matter.
placeholder
Copper hits a two-week high on a Codelco supply halt — silver slips below $61 as CPI loomsLME three-month copper rose 0.56% to $14,618.50 a tonne on Monday — a two-week high — after a landslide at Codelco's El Teniente mine killed two workers and halted part of the operation; COMEX copper gained 1.04% to $6.7615/lb before easing back on Tuesday. Silver, meanwhile, slipped below $61 as precious metals marked time ahead of Wednesday's US CPI. Here are the levels, the supply story and the scenarios.
Author  Irene Q.
20 hours ago
LME three-month copper rose 0.56% to $14,618.50 a tonne on Monday — a two-week high — after a landslide at Codelco's El Teniente mine killed two workers and halted part of the operation; COMEX copper gained 1.04% to $6.7615/lb before easing back on Tuesday. Silver, meanwhile, slipped below $61 as precious metals marked time ahead of Wednesday's US CPI. Here are the levels, the supply story and the scenarios.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 13, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 13, 2026. Read on for the details.
Author  Mitrade
18 hours ago
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 13, 2026. Read on for the details.
placeholder
US September CPI Preview: Inflation May Heat Up, How Will US Stocks, Dollar and Gold React?The U.S. will release its September CPI data on Wednesday (October 14) Eastern Time, which will be one of the most important inflation reports ahead of the Federal Reserve's October 27-28
Author  TradingKey
17 hours ago
The U.S. will release its September CPI data on Wednesday (October 14) Eastern Time, which will be one of the most important inflation reports ahead of the Federal Reserve's October 27-28
goTop
quote