10 Growth Stocks Down 10% or More to Buy Right Now

For several months now, the S&P 500 index has experienced a surge, climbing approximately 24% since its 2025 trough, and it’s been establishing fresh record highs along the way.

While this remarkable climb in the market doesn’t guarantee a scarcity of affordable stocks, it’s crucial to note that many top-performing growth stocks still linger at least 10% below their peaks. Here are my top 10 picks for growth stocks that are currently a great buy (as of July 10, 2025).

1. Shopify: 33% below all-time highs

As I compose this, shares for Shopify, a top e-commerce facilitator in the U.S., have dropped approximately 33% from their high point in 2021.

In the last four years following that peak, the company’s sales have soared, climbing from $4 billion to over $9 billion. This significant increase has greatly improved the company’s market value.

As a passionate follower of technological advancements, I can’t help but feel excited about how Shopify is poised to reshape the e-commerce landscape, much like Amazon did during the internet boom. With artificial intelligence (AI) becoming increasingly influential, Shopify is eagerly stepping up to redefine the industry.

In the year 2023, the company introduced Shopify Magic – a versatile AI toolkit capable of creating product descriptions, marketing campaigns, editing images, and managing customer support tasks automatically. Following this, in 2024, they unveiled Sidekick – an assistant designed to aid merchants in gaining business insights, improving inventory management, and devising pricing strategies, among other functions.

By employing these AI technologies, Shopify is further streamlining its commitment to making business ownership more accessible. This, in turn, could maintain its position as a leading force in the worldwide e-commerce market.

In simpler terms, Shopify represents just 12% of the U.S. online retail market and less than 2% in its key international markets. This suggests that Shopify has a long way to go and potentially several more decades of expansion ahead.

2. Global-E Online: 59% below all-time highs

While Shopify simplifies the online shopping experience for local merchants, Global-E Online (GLBE 3.45%) focuses on streamlining cross-border sales. Navigating international transactions can be complex, but Global-E’s e-commerce platform makes it easier for its merchants to handle these complications in different countries.

As a global enthusiast, I’m thrilled to be part of a company that seamlessly connects me with over 200 nations! This incredible platform not only adapts to 100 different currencies but also offers an impressive 150 payment methods to cater to diverse preferences.

But wait, there’s more! It’s like having a personal assistant who speaks 30 languages, ensuring smooth communication with clients worldwide. And when it comes to shipping, you’ll find access to no less than 20 carriers at your fingertips.

Additionally, I appreciate the assurance of tariff calculations that are spot-on and zero-risk payment fraud management that keeps our transactions secure, giving us peace of mind in every deal we make!

Instead of attempting to handle the intricate aspects of international sales independently, Shopify opted to team up with Global-E, allowing their merchants to more effectively sell globally.

The projection by FedEx indicates that international online sales are likely to expand at a rate double that of standard e-commerce transactions up until 2030. Coupled with Global-E’s impressive 30% revenue increase and strengthening profitability, this makes it an attractive prospect for investment.

3. DLocal: 84% below all-time highs

DLocal (holding approximately 1.82%) assists merchants in selling to customers worldwide, especially in developing markets, by facilitating payments. It enhances merchants’ sales by providing around 900 local payment solutions across 40 countries, which span Latin America, Africa, and Asia. This, in turn, boosts their conversion rates.

Since the company became publicly traded in 2021, its net profit margin has decreased significantly, falling from over 30% to 19%. This decline likely contributes to the steep drop in its share price.

I’m all about the strategic moves DLocal is making! Instead of insisting on high fees right off the bat, they’re seizing opportunities with big-name clients like Amazon, Spotify, Uber, Shopify, and Netflix. It’s a clever short-term compromise that’s opening doors for them in the long run.

As DLocal becomes integrated within its major clients’ systems, it has the potential to introduce higher-profit offerings gradually, boosting the percentage it earns while delivering value. The initial findings are encouraging: last quarter, DLocal’s total payment volume (TPV) retention rate reached an impressive 144%.

Trading at 23 times earnings, while growing TPV by 53%, DLocal could be a steal today.

4. Nu Holdings: 18% below all-time highs

With an expanding customer base of approximately 99 million active users spread across Brazil, Mexico, and Colombia, a number that increased by a substantial 16 million over the past year, Nu Holdings (NU 1.96%) is swiftly making its mark as one of the world’s largest digital banking institutions.

In addition to boasting a strong 25% net profit margin, what truly captivates about the bank is its increase in the average revenue generated per active customer (ARPAC).

A year after a client signs up with the bank, ARPAC (Annual Rate of Product and Account Charges) is set at $4.80. This increases to $6.80 after two years, but what’s interesting is that it significantly rises to $25.90 after eight years. This underscores the bank’s growth in tandem with its customers over time.

Additionally, even though Nu serves about 58% of the adult population in Brazil, this figure is significantly smaller in its emerging markets. Specifically, it stands at just 12% in Mexico and 8% in Colombia.

With its impressive ARPAC expansion, promising geographical growth prospects, robust profit margins, and manageable delinquency rates, Nu Holdings stands out as an exceptional choice for investors seeking high-growth stocks.

5. Duolingo: 30% below all-time highs

Since a fourfold increase in value following their 2021 Initial Public Offering (IPO), the stocks of the globe’s biggest language-learning application, Duolingo (DUOL -4.58%), have experienced a drop of approximately 30%.

As the rate of increase in daily active users for Duolingo decreased from 56% in February to 37% in June, investors adjusted the company’s high valuation. Currently, it trades at a more moderate 61 times projected future earnings (compared to 90 just a few days prior). However, Duolingo’s improving profit margins and promising growth potential may surpass this current valuation.

As an avid follower of Duolingo’s journey, I can’t help but be excited about what the future holds! Whether they introduce fresh subjects like math and chess, broaden their testing standards, expand their marketing empire, or integrate innovative AI applications such as video chats with beloved characters like Lily, it seems that Duolingo’s growth tale is far from reaching its climax.

6. Wingstop: 23% below all-time highs

During January and February, I discussed Wingstop (WING with 2.69% return) as one of my preferred stocks for growth. Since then, the company’s shares have escalated from around $200 per share to over $300. However, it appears that even greater potential lies ahead.

Currently, Wingstop boasts 2,563 locations worldwide, and their leadership envisions potentially expanding this count to a staggering 10,000. If you find this idea hard to believe, remember that an impressive 1,955 Wingstop stores are already in the process of being developed.

Instead of just focusing on expanding its number of stores to grow, Wingstop demonstrates versatility with 21 consecutive years of the same-store sales growth. This impressive streak even includes a notable 20% increase in sales for the year 2024.

Certainly, let me rephrase that for you: Indeed, this stock appears quite pricey with a multiple of 69 times its cash flow from operations (CFO). Yet, it held a comparable valuation at its initial public offering in 2015 and has since provided investors with a return of 15 times their investment. As a result, I remain hopeful about its future prospects.

7. Dutch Bros: 25% below all-time highs

Dutch Bros, represented by (BROS -1.64%), is rapidly expanding as a popular chain specializing in custom-made beverages. Similar to Wingstop, a significant part of the company’s stock appeal lies in its prospect for increasing the number of stores.

Excitedly speaking about my favorite coffee chain, Dutch Bros, I must share that despite boasting a whopping 1,000 stores already, an impressive 50% of these outlets are nestled in just three states: Oregon, California, and Texas. With ambitious plans to stretch its roots further into the Midwest and Southeast, the company’s management envisions an astonishing growth that could potentially see as many as 7,000 locations!

Once our company achieves a point where its annual operational cash flow equals its expenses for constructing new stores, it may transform into a self-replicating entity.

Previously recognized for exceptional customer service and competitive pricing, Dutch Bros is expected to remain attractive as it ventures into additional states.

8. UFP Technologies: 30% below all-time highs

UFPT, represented by the ticker symbol UFPT, is a specialized company that provides design and production services to 26 out of the top 30 global leaders in the medical devices industry, as indicated by its recent decline of 1.21%.

Working in tandem with medical device manufacturers, UFP leverages its proficiency in design and mastery of materials to develop innovative polymer-based medical devices. A noteworthy demonstration of this collaboration is the creation of surgical drapes specifically designed for the robots produced by Intuitive Surgical. These drapes are utilized during operations.

For growth, the company focuses on specific, specialized applications by consistently acquiring other companies that offer compatible technologies, thereby expanding its portfolio.

As a fervent advocate for UFP, I’m thrilled by their unique ability to selectively partner with clients, often focusing on high-margin, single-use products. This strategic approach has proven successful in the past, and I’m optimistic that this trend will persist well into the future, promising continued multiplication of success for UFP.

9. The Trade Desk: 46% below all-time highs

The Trade Desk, with a 1.34% rise, is recognized as the most extensive open-internet ad-purchasing platform. Unlike the closed systems of Meta Platforms, Amazon, and Google owned by Alphabet, The Trade Desk emphasizes transparency in its operations.

However, following the company’s initial quarterly earnings report this year that fell short of projections for the first time in 33 consecutive quarters, its stock suffered a significant decline.

It’s quite concerning that the share price fell by 60%, but it seems the steep decline might be more related to the company being valued at over 100 times its Free Cash Flow (FCF), rather than any significant problems with the company itself.

In other words, GroupM forecasts a 7% increase in the advertising industry by 2025. Given The Trade Desk’s impressive 25% growth in Q1 sales, it seems clear that the company is successfully increasing its influence in the market.

The Trade Desk is expected to exceed its current Price-to-Free Cash Flow (P/FCF) ratio of 55 as it focuses on expanding in three rapidly growing sectors: connected TV, premium audio, and global markets.

10. ASML: 27% below all-time highs

A straightforward method to capitalize on the continuous growth of AI might be by purchasing the leading lithography company, ASML (ASML -8.41%).

Lithography refers to an almost mystical method where ultraviolet light is utilized to carve tiny patterns onto silicon wafers, which are crucial components in some of the world’s strongest semiconductor chips. What sets ASML apart is its dominance in this field. It controls more than half the market share in mature deep ultraviolet lithography and has a sole provider status in extreme ultraviolet lithography, which is the most sophisticated process available.

Regardless of ongoing geopolitical uncertainties and the cyclical nature of the semiconductor industry, ASML’s significance to its clients is likely to expand significantly in the long run, thereby boosting its sales.

According to McKinsey & Company’s predictions, the semiconductor industry, currently worth $600 billion, is projected to reach a staggering $1 trillion by 2030 and surpass $2 trillion by 2040. Given this growth trajectory, it’s clear that ASML’s lithography machines will continue to be indispensable for the foreseeable future.

Given that the company’s shares are currently trading at a price-to-earnings (P/E) ratio lower than its 10-year average of 37, it appears to be an opportune moment to think about investing in the company that spearheads the semiconductor industry.

2025-07-17 15:46