While the broader market has shown significant strength, not every high-quality growth stock has participated in the rally. A handful of innovative companies are still trading well below their all-time highs, creating a potential opportunity for long-term investors.
Here’s a closer look at five compelling growth stocks—Advanced Micro Devices, GitLab, e.l.f. Beauty, Dutch Bros, and Cava Group—that are down 20% or more and appear attractive at their current valuations.
1. Advanced Micro Devices (NASDAQ: AMD)
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Down 35% from its high
While Nvidia remains the dominant force in GPUs for AI training, AMD is aggressively carving out a meaningful niche in the AI inference market—the process of using trained models to make predictions. This is critical, as the inference market is projected to eventually become larger than AI training.
AMD’s cost-effective chips are gaining significant traction. On a recent earnings call, management highlighted that a major AI company is now using its GPUs for a large portion of its daily inference tasks. Building on its leadership position in data center CPUs, AMD’s overall data center revenue is surging. Last quarter, the segment’s revenue soared 57%, contributing to a 36% climb in total company revenue. AMD doesn’t need to defeat Nvidia; it just needs to capture a modest share of the massive AI chip market to drive significant growth.
2. GitLab (NASDAQ: GTLB)
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Down 65% from its high
GitLab is a foundational player in modern, secure software development. Its unified DevSecOps platform enables developers to build, test, and deploy code more efficiently and securely. The company’s recent GitLab 18 release reinforces this advantage with over 30 enhancements, including an AI-powered agent platform that assists across the entire development lifecycle.
Growth remains robust, with revenue climbing 27% year over year last quarter. More importantly, its dollar-based net retention rate was a healthy 122%, indicating existing customers are spending significantly more on the platform. While some investors fear AI will reduce the need for human coders, the opposite has been true so far, as AI has fueled an explosion in software development. GitLab’s stock appears to have been unfairly punished by this fear, positioning it for a potential rebound.
3. e.l.f. Beauty (NYSE: ELF)
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Down 40% from its high
After an incredible multi-year run, shares of e.l.f. Beauty have cooled, offering a rare entry point into a market-share-gaining juggernaut. The company has delivered over 20 consecutive quarters of net sales growth, consistently stealing shelf space from legacy brands with its viral marketing and affordable, high-quality products.
The investment thesis remains powerful. Its recent acquisition of skincare brand Naturium has been a resounding success, proving its ability to expand beyond color cosmetics. e.l.f. continues to have a long runway for growth through international expansion and further penetration into the skincare market. The company’s ability to connect with Gen Z and Millennial consumers is unmatched in the industry, making this pullback an attractive opportunity for investors focused on long-term brand power.
4. Dutch Bros (NYSE: BROS)
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Down 21% from its high
Dutch Bros is in the early stages of a massive national expansion story. With just over 1,000 drive-thru coffee locations today, the company has a long-term target of 7,000 stores across the U.S. This unit growth alone provides a clear path to multi-year revenue growth.
However, the story isn’t just about new stores. Dutch Bros is also driving strong performance at its existing locations, with same-store sales rising 4.7% last quarter. Key initiatives like the recent full rollout of mobile ordering and the new pilot program for food items offer significant upside. As its chief rival Starbucks has demonstrated, food can become a major revenue driver. With a loyal customer base and multiple levers for growth, Dutch Bros has a compelling long-term trajectory.
5. Cava Group (NYSE: CAVA)
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Down 43% from its high
Cava is another powerful growth story in the restaurant industry. The fast-casual Mediterranean chain has posted four straight quarters of double-digit same-store sales growth, including an impressive 10.8% increase last quarter. Critically, customer traffic rose 7.5% in that period, showing that growth is being driven by more frequent visits, not just higher prices.
Like Dutch Bros, Cava’s primary growth engine is expansion. With only 382 restaurants, its plan to reach 1,000 locations by 2032 leaves a long runway. The company’s “coastal smile” strategy has successfully established its presence on the East and West Coasts, and its recent push into the Midwest is set to accelerate its footprint. Strong unit economics and a popular, on-trend concept make Cava a standout growth opportunity.
