3 Growth Stocks the Market Is Throwing Away and Why You Should Pick Them Up
After a heroic run-up in April, the overall market is back into positive territory for the year. But that’s certainly not the case for a handful of growth stocks. As veteran investors can attest, the market doesn’t always get it right. Sometimes it dumps the wrong names, only to end up watching them recover en…
After a heroic run-up in April, the overall market is back into positive territory for the year. But that’s certainly not the case for a handful of growth stocks.
As veteran investors can attest, the market doesn’t always get it right. Sometimes it dumps the wrong names, only to end up watching them recover en route to even higher highs.
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Here’s a closer look at three great growth stocks that investors have dragged lower, but are worth scooping at their current prices.
ServiceNow
The broad sell-off of artificial intelligence (AI) stocks is understandable, but has also been indiscriminate. Take ServiceNow(NYSE: NOW) as an example. Despite last year’s revenue growth of 20% and its first-quarter top-line growth of 19%, shares of the workflow automation outfit are down more than 50% from their July peak, reaching a three-year low just last month.
It’s lining up more future sales growth than it’s booking right now, too. As of the quarter ending in March, its total remaining performance obligations for the next 12 months has grown by 21% year over year to $12.6 billion, while total remaining performance obligations have soared more than 23% to $27.7 billion. (For perspective, ServiceNow turned $13.2 billion in revenue into $4.1 billion worth of net income for the entirety of 2025. Yes, this company is also profitable.)
What gives?
As was noted, this stock was largely in the wrong business at the wrong time. Investors began panicking about valuations and the lack of profitability for most artificial intelligence software stocks like SoundHound and Palantir in the latter half of last year, when serious questions about AI’s usefulness and utility also started surfacing. ServiceNow was just lumped in with the rest of the punished names.
Now take a step back and look at what the company actually brings to the table. Its original vision as a workflow automation platform when it launched all the way back in 2004 was realized well before the current AI revolution got underway. You could argue, in fact, that ServiceNow’s existence is why so many similar offerings have materialized in the meantime — they’re attempting to copy the original’s success. ServiceNow remains a top option in the arena it largely helped define, however. IT consulting firm Gartner says as much, rating the company as one of only a handful of leaders within the workplace experience application space for 2026. ServiceNow’s ongoing fiscal growth confirms the same.
Roblox
If you keep regular tabs on online video gaming platform outfit Roblox(NYSE: RBLX), then you likely know its recently enacted age verification protocols are slowing the company’s growth. Indeed, although last quarter’s $1.4 billion top line was up 39% and its per-share loss of $0.35 was better than the $0.41 loss analysts were anticipating, revenue still fell short of expectations, while bookings of $1.7 billion just missed outlooks of $1.73 billion.
The number that delivered Friday’s blow, however, was guidance for the remainder of the year. Roblox is now calling for top-line growth of between 20% and 25% for 2026, down from its previous projected range of 23% to 29%. Bookings and cash-flow projections were also lowered accordingly. The vast majority of these weaker numbers, it’s believed, reflects the fact that anyone logging into the company’s online game rooms must go through several steps to verify their age. While it’s certainly the right thing to do, the measure is preventing access to at least some legitimate gamers.
Image source: Getty Images.
What’s largely being overlooked in the dynamic that’s now driven RBLX stock down more than 60% just since October, though, is that the age-verification headwind crimping this year’s growth was already reflected in this ticker’s price, and then some. It doesn’t really need any additional punishment.
Then there’s the more philosophical bullish argument. That’s the idea that while age verification may be a stumbling block in the near term, in the long run, being a safer place to play online games makes for a more marketable product to parents concerned about their kids’ online safety. Let’s also not forget that while Roblox lowered its guidance for the full year, sales growth of 20% to 25% is still pretty impressive.
Boston Scientific
Finally, add medical equipment maker Boston Scientific(NYSE: BSX) to your list of growth stocks to buy after the market carelessly threw them away.
It’s not too difficult to understand the underlying concern behind this ticker’s 46% pullback from September’s peak. Trials of the company’s Watchman implant, intended to reduce strokes in atrial fibrillation patients not using blood thinners, worked as hoped in recent trials, but broadly speaking, it isn’t producing an overwhelmingly convincing long-term benefit. That’s at least part of the reason why, following a fantastic 2025 and strong initial guidance for sales growth of between 10% and 11% for 2026, the company’s since dialed back its full-year revenue growth outlook to a range of only 6.5% to 8%.
Inspired by a handful of pessimistic analyst responses and understated growth guidance, however, the sellers may have overshot their target.
That’s what the analyst community as a whole seems to think, anyway. In spite of all the recent bearish rhetoric, the vast majority of analysts currently consider BSX stock a strong buy, with a consensus one-year price target of $85.84 that’s nearly 50% above this ticker’s present price. Even Raymond James analyst Jayson Bedford — who downgraded Boston Scientific shares in March due to concerns about the continued marketability of Watchman — acknowledged at the time, “Our overarching view of Boston Scientific (BSX) as one of the highest quality, and fastest growing, companies in large cap Med Tech has not changed.”
In other words, these past few months of weakness present a great long-term buying opportunity.
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James Brumley has positions in Raymond James Financial. The Motley Fool has positions in and recommends Palantir Technologies, Roblox, ServiceNow, and SoundHound AI. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
3 Growth Stocks the Market Is Throwing Away and Why You Should Pick Them Up was originally published by The Motley Fool