Stock Market Correction: 2 Stocks Down 26% and 20% in a Month That You Can Buy Right Now

The stock market has been on a rollercoaster ride in recent months, with the S&P 500 and Nasdaq-100 indices experiencing significant downturns. While market corrections can be unsettling, they also present opportunities for savvy investors to pick up high-quality stocks at discounted prices. In this article, we'll take a closer look at two stocks that have seen substantial declines in the past month but offer compelling value propositions for long-term investors.



SoFi Technologies (SOFI): A Financial Services Platform with Strong Momentum

SoFi Technologies, a leading financial services platform, has seen its stock price drop by about 26% in the past month. Despite this decline, SoFi's fundamentals remain strong, making it an attractive buying opportunity for investors.

SoFi ended 2024 with more than 10.1 million members, adding over 2.5 million new members last year alone. The company's loan performance has been continually improving, and it has successfully built capital-light, low-risk revenue streams, such as its rapidly growing third-party loan origination platform. SoFi's financial performance for 2024 was impressive, with 26% revenue growth and an adjusted EBITDA margin that expanded by 500 basis points. The company also achieved its first full year of profitability in 2024 and expects significant earnings growth in 2025 and beyond.

One of the key drivers of SoFi's growth is its Galileo tech platform, which recently announced that it will begin offering co-branded rewards debit cards for third parties. Additionally, SoFi finalized a $5 billion loan platform agreement with Blue Owl Capital, the largest commitment the company has received to date. These developments highlight SoFi's strong momentum and growth prospects.

From a valuation perspective, SoFi trades for 1.91 times book value, which is lower than megabank JPMorgan Chase's P/B of about 1.94, despite SoFi's revenue growing by 26% in 2024 compared to JPMorgan Chase's 12% growth rate. This indicates that SoFi is trading rather cheaply relative to its growth rate, making it an attractive investment opportunity.

Pinterest (PINS): A Social Media Company with Solid Earnings and Near-Term Uncertainty

Pinterest, a popular social media platform, started the year as one of the market's best-performing stocks. However, since reporting its fourth-quarter results in early February, the company's shares have given up all of their gains and then some, with the stock down by more than 22% from its 2025 peak. Despite this decline, Pinterest's fundamentals remain strong, and the company offers an attractive valuation for long-term investors.

Pinterest reported top- and bottom-line growth that handily beat analysts' expectations, with revenue growth in non-U.S. markets being extremely strong. The company's active user base reached 553 million, its highest level ever, and its adjusted EBITDA margin increased by more than 3 percentage points. Pinterest's first-quarter guidance was also far stronger than expected, indicating that the company is well-positioned for growth in 2025.

However, Pinterest's stock price has been impacted by near-term uncertainty, including the overall market pressure and the potential for a U.S. recession. The company makes most of its money from advertising, and in uncertain economic times, advertisers tend to pump the brakes on spending. Additionally, although Pinterest's user base is mostly international, it makes most of its money from its U.S. users, making it highly vulnerable to a U.S. recession.

Despite these challenges, Pinterest's stock trades for less than 17 times forward earnings, and the company has a fantastic balance sheet and 19% year-over-year earnings growth in 2024. This makes Pinterest an attractive investment opportunity for long-term investors who are willing to look past the near-term uncertainty.

Potential Risks and Challenges

While SoFi Technologies and Pinterest offer compelling value propositions, investors should be aware of the potential risks and challenges that these companies may face in the near term.

For SoFi Technologies, one of the primary risks is the potential for a U.S. recession, which could lead to a decrease in loan demand and an increase in loan defaults. Additionally, the Federal Reserve's cautious stance on interest rate cuts could lead to prolonged high borrowing costs, which could stifle economic growth and corporate profits, including those of SoFi Technologies.

For Pinterest, the primary risks include the overall market pressure and the potential for a U.S. recession, which could lead to a decrease in advertising revenue. Additionally, Pinterest's stock price is sensitive to market conditions, and any further market downturns could lead to a decrease in stock price.

Conclusion

In conclusion, the current market correction presents an opportunity for long-term investors to pick up high-quality stocks at discounted prices. SoFi Technologies and Pinterest are two stocks that have seen substantial declines in the past month but offer compelling value propositions for investors. While these companies face potential risks and challenges in the near term, their strong fundamentals and growth prospects make them attractive investment opportunities for long-term investors who are willing to look past the near-term uncertainty.