1 Growth Stock Down 75% to Buy Right Now

Ladies and gentlemen, buckle up! We're diving into the world of growth stocks, and today, we're focusing on one that's taken a massive hit but is poised for a comeback. Revolve Group (RVLV) has seen its stock plummet by 75% from its all-time highs, but don't let that scare you away. This is a buying opportunity you don't want to miss!



First things first, let's talk about why Revolve Group is a standout in the fashion industry. This company operates two powerhouse websites: Revolve and its high-end sister brand, FWRD. Both cater to the stylish, social media-savvy consumer, and they've got a secret weapon—celebrities and influencers. These trendsetters help Revolve reach a massive audience, making it a go-to for event and party wear.

But Revolve isn't just about the glitz and glamour. They're expanding into new categories like men's wear, shoes, accessories, and an expanded assortment of women's wear. This diversification is a game-changer, deepening consumer relationships and driving higher sales. And the numbers don't lie—Revolve saw a 14% sales increase year over year in the 2024 fourth quarter, with a whopping 237% increase in net income. Gross margin improved by 0.5 percentage points to 52.5%, and the full-price sales rate increased by three percentage points to 82%. That's some serious growth, folks!

Now, let's talk about the FWRD brand. Revolve seized the opportunity to invest in FWRD as other luxury brands cut back. The result? Average sales per active FWRD customer increased by double digits in the fourth quarter year over year, leading to an 11% increase in total sales for the brand. This is a luxury play that's paying off big time.

But the story doesn't stop there. Revolve is all about AI—it's built into their DNA. They use AI across their enterprise, from operations and merchandising through marketing and fulfillment. This gives them a competitive edge, and it's showing in their results. For example, sales from their winter ski shop increased 850% this past year as they carefully curated a product assortment that resonated with their core customer base.

And get this—they're even entering physical retail! Their first metro shop is set to open in Los Angeles. This is a brand that's not afraid to take risks and innovate. They're continuing to invest in the luxury customer, where they see opportunity as other luxury retailers experience pressure. And with their highly effective AI operations, they feel they have an edge over competitors.

So, why is this a buying opportunity? At the current price, Revolve stock trades at a forward, one-year P/E ratio of 24. That's a steal for a stock with loads of opportunity. The company is going through a challenging period, but it has thrived in better times, and it's still delivering profitable growth for shareholders right now. Over the next few years, Revolve is likely to report higher growth and capture market share, and its stock price will reflect that.

Don't miss out on this opportunity, folks! Revolve Group is a growth stock that's down but not out. With its strong fundamentals, innovative strategies, and a forward P/E ratio of 24, this is a no-brainer buy. So, what are you waiting for? Get in on the action and buy Revolve Group stock now!