Stock Market Turbulence: 5 Stocks Down 40% or More That I’d Buy Right Now

It’s been a rough stretch for growth stocks. The AI trade has cooled, and Nvidia (NASDAQ:NVDA) just lost its legendary CEO. And to say that the stock market has been volatile since the midterm elections would be an understatement.

However, when markets get choppy, some great businesses get dragged down with everything else, and that’s when I like to go shopping. Here are five stocks down 40% or more from their highs that I’d buy right now.

Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »

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1. Forgent Power Solutions

Forgent Power Solutions (NYSE:FPS) makes the electrical gear that data centers need. Its stock is more than 60% below its 52-week high of $66. But despite the stock performance, its business is booming. Revenue rose 69% in its fiscal first quarter, and management raised its fiscal 2027 guidance to $2.45 billion to $2.65 billion, saying its backlog already covers it. I own Forgent, and I think the market is focused on the wrong numbers.

2. Rocket Lab

Rocket Lab (NASDAQ:RKLB) is also down more than 60% from its $151 high. Its Neutron rocket has been delayed to 2027 at the earliest, but the rest of the business is accelerating. Third-quarter revenue grew 73% to a record $267.8 million, its backlog jumped 52% in a single quarter to about $3.6 billion, and it has about $4.45 billion in cash. I don’t own Rocket Lab yet, but it’s high on my watch list.

3. Lemonade

Lemonade (NYSE:LMND) has fallen about 57% from its 52-week high. The AI-powered insurer grew in-force premium by 34% to $1.55 billion last quarter and expects its first positive adjusted EBITDA quarter in the fourth quarter. Lemonade’s auto insurance product, Lemonade Car, is growing rapidly, and underwriting profitability has been trending in the right direction for the past few years.

Perhaps the most impressive statistic is that Lemonade’s top-line growth rate has now accelerated for 12 consecutive quarters. Lemonade isn’t without risk, but I think the profitability inflection is underappreciated.

4. Marvell Technology

Marvell Technology (NASDAQ:MRVL) is about 50% below its 52-week high. Investors didn’t love its $115 billion all-stock deal to acquire Lumentum (NASDAQ:LITE), which has lost more than a third of its value since the deal was announced. But the combination would make Marvell a major player in the optical connections that AI data centers need.