After an amazing run in April, the market as a whole is back in good territory for the year. But that’s not the case with several growth stocks.
As seasoned investors can attest, the market doesn’t always get you right. Sometimes it throws out the wrong words, only to watch them recover on their way to higher heights.
|
Will AI create the world’s first trillionaire? Our team recently released a report on a little-known company, called “Indispensable Monopoly,” which provides critical technology needed by both Nvidia and Intel. Continue » |
Here’s a closer look at three high-growth stocks that investors have shunned, but are worth picking up at their current prices.
Service Now
The broad sell-off in artificial intelligence (AI) stocks is understandable, but it was also arbitrary. Take it Service Now (NYSE: NOW) as an example. Despite year-over-year revenue growth of 20% and first-quarter top-line growth of 19%, stocks of flexible workflow equipment have fallen more than 50% from their July highs, hitting a three-year low last month.
It includes future sales growth rather than current bookings, too. As of the quarter ending in March, its outstanding operating obligations for the next 12 months grew 21% year over year to $12.6 billion, while outstanding operating obligations rose more than 23% to $27.7 billion. (In theory, ServiceNow turned $13.2 billion in revenue into $4.1 billion in total revenue by 2025. Yes, the company is also profitable.)
What gives?
As noted, this stock was in the wrong business at the wrong time. Investors are starting to panic about the valuations and lack of profitability of many artificial intelligence software stocks like SoundHound again Palantir in the latter half of last year, when serious questions about the usability of AI and its use began to emerge. ServiceNow has been lumped in with other sanctioned 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 in 2004 was realized well before the current AI revolution began. You could argue, in fact, that the existence of ServiceNow is why so many similar offerings have appeared in the meantime – trying to copy the success of the original. ServiceNow remains the top choice in the arena that helped define it, however. IT consulting firm Gartner says a lot, rating the company as one of only a few leaders in the field of work experience application for 2026. ServiceNow’s continued financial growth confirms the same.
Roblox
If you keep regular tabs on the online video game platform Roblox (NYSE: RBLX)then you may know that its newly established age verification policies are holding back the company’s growth. Indeed, although last quarter’s top line rose 39% and its loss per share of $0.35 was better than the $0.41 loss analysts were expecting, revenue still fell short of expectations, while bookings of $1.7 billion just missed expectations by $1.73 billion.
The amount that delivered Friday’s blow, however, was a guide for the remainder of the year. Roblox is now looking for top-line growth of between 20% and 25% by 2026, down from the previous range of 23% to 29%. Bookings and revenue projections are also reduced accordingly. Most of these weak numbers, it is believed, reflect the fact that anyone entering the company’s online gaming rooms must go through several steps to verify their age. Although it is the right thing to do, the measure restricts access to at least some legitimate players.
What’s largely overlooked in the dynamic that is now driving RBLX stock down more than 60% since October, however, is that the year-end confirmation storm that has disrupted growth this year has already been reflected in the price of this ticker, and then some. It doesn’t really need any additional punishment.
Then there is the more philosophical bulliso argument. That’s the idea that while age verification may be a stumbling block in the near term, in the long run, being a safe place to play online games makes the product more marketable to parents concerned about their children’s online safety. Let’s also not forget that while Roblox lowered its lead for the year, sales growth of 20% to 25% is still very good.
Boston Scientific
Finally, add a medical device manufacturer Boston Scientific (NYSE: BSX) on your list of growth stocks to buy after the market has carelessly dumped them.
It’s not too hard to understand the underlying concern behind the ticker’s 46% pullback from its September high. The company’s Watchman implant trial, aimed at reducing strokes in atrial fibrillation patients not taking blood thinners, has worked as expected in recent trials, but broadly speaking, it’s not producing a convincing long-term benefit. That’s at least part of the reason why, following a positive 2025 and solid guidance for sales growth of between 10% and 11% in 2026, the company has since pushed back its full-year revenue growth outlook to a range of 6.5% to 8%.
Buoyed by a handful of pessimistic analyst responses and understated growth guidance, however, retailers may be overshooting their target.
That’s what the analyst community as a whole seems to think, anyway. Despite all the recent bearish rhetoric, most analysts currently consider BSX stock a strong buy, according to a one-year price target of $85.84 which is about 50% above the ticker’s current price. I mean Raymond James analyst Jayson Bedford — who downgraded Boston Scientific shares in March due to concerns over the continued sale of Watchman — agreed at the time, “Our overall view of Boston Scientific (BSX) as one of the highest quality, and fastest growing, major Med Tech companies has not changed.”
In other words, these last few months of weakness present a great long-term buying opportunity.
Should you buy stock in ServiceNow right now?
Before buying stock in ServiceNow, consider the following:
I The Motley Fool Stock Advisor a team of analysts has just identified what they believe to be 10 best stocks for investors to buy now… and ServiceNow was not one of them. The 10 stocks that made the cut could produce huge gains in the coming years.
Think about when Netflix made this list on December 17, 2004… if you invested $1,000 during our recommendation, you will have $496,473!* Whenever Nvidia made this list on April 15, 2005… if you invested $1,000 during our recommendation, you will have $1,216,605!*
Now, it’s worth noting Stock Advisor’s the average total return is 968% – outperformed the market by 202% for the S&P 500. Don’t miss the latest top 10 list, available via Stock Advisorand join an investment community built by individual investors for individual investors.
See 10 stocks »
*Stock Advisor returns from May 4, 2026.
James Brumley holds positions in Raymond James Financial. The Motley Fool has positions and recommends Palantir Technologies, Roblox, ServiceNow, and SoundHound AI. The Motley Fool recommends Gartner. The Motley Fool has a policy of disclosure.
3 Growth Stocks The Market Is Losing and Why You Should Pick Them was originally published by The Motley Fool.
