Stocks showing a decrease of 20% or more that are worth buying immediately
In the dynamic world of technology and retail, some of the leading names - Shopify, SoFi Technologies, Revolve Group, Nu Holdings, and RH - have recently experienced significant stock price drops, causing investors to question their market trends and future prospects.
**Shopify (SHOP)**
Despite the recent stock price volatility and a general downtrend forecast through late 2025, Shopify's operational metrics show promise. The company is expanding its fulfillment network and enhancing its platform with advanced analytics and marketing features, aiming to improve logistics and merchant services. These initiatives have been positively received by investors, indicating confidence in Shopify's long-term growth potential amid market volatility.
Financially, Shopify projects significant free cash flow (FCF) growth. Analysts forecast sales growth of over 20% annually, with 2025 revenue expected around $10.88 billion and 2026 at $13.11 billion. With a stable or slightly improving FCF margin around 18.5%, free cash flow could reach $2.4 billion, which is a substantial increase compared to previous years and could support stock price appreciation.
**SoFi Technologies, Revolve Group, Nu Holdings, and RH**
While specific recent data or forecasts on SoFi Technologies, Revolve Group, Nu Holdings, and RH were not available in the search results, their prospects would depend heavily on their ability to adapt to market conditions and innovate within their sectors after stock declines.
**Revolve Group**
Fashion retailer Revolve, known for its AI-driven sales and growing digital presence, has shown resilience. After a decline during inflation, Revolve's sales and profits are climbing again. In Q1, sales increased 10%, net income rose 5%, active customers increased 6%, and total orders placed were up 4%.
**RH**
Luxury furnishings retailer RH, with its unique offerings such as restaurants, a guesthouse, and yacht rentals, is expanding globally, including in the UK and other European cities. In Q1 of the 2025 fiscal year, revenue increased 12% and the adjusted operating margin was 7%. RH's growth might be on the rebound after inflation-induced damage.
**Nu Holdings**
Digital bank Nu, operating in Brazil, Mexico, and Colombia, has more than half of Brazil's adult population as members and adds about 1 million new customers monthly. In Q1, sales increased 40%, net income rose 74%, and the interest-earning portfolio was up 62%. Nu, which doesn't have exposure to U.S. tariffs, has rapid growth potential, particularly in Mexico and Colombia, and plans international expansion.
In conclusion, while the short-term outlook for Shopify's stock price may be uncertain, its strong fundamentals and growth outlooks, especially from expanding logistics and improving cash flows, lend a positive future perspective despite current price drops. For SoFi Technologies, Revolve Group, Nu Holdings, and RH, a closer look at their latest financial results, sector dynamics, and strategic initiatives will provide insights into their market trends and future prospects.
Investors remain confident in Shopify's (SHOP) long-term growth potential, despite the recent stock price volatility, as the company's operational enhancements and promising financial projections suggest a stable future.
The prospects of SoFi Technologies, Revolve Group, Nu Holdings, and RH may hinge on their ability to adapt and innovate within their respective sectors following stock declines.
Despite a decline during inflation, Revolve Group's sales and profits are rising, demonstrating the company's resilience in the dynamic retail environment. Similarly, RH's growth may be recovering from inflation-induced damage, as shown by the company's global expansion and Q1 revenue increase. In the case of Nu Holdings, the digital bank's rapid growth in Brazil and other South American markets points to considerable potential for expansion.
