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2 Stocks Down 15% and 7% to Buy Right Now
RKLBRocket Lab USA(RKLB) The Motley Fool·2025-05-17 13:43

Core Viewpoint - The current market volatility presents opportunities for long-term investors to acquire growth stocks at lower prices, specifically highlighting Tesla and Rocket Lab as attractive options due to their recent stock price declines [1][2]. Tesla - Tesla's stock has decreased by 15% this year, primarily due to disappointing sales and concerns over CEO Elon Musk's involvement with the Department of Government Efficiency [4]. - Despite the decline, Tesla has several positive catalysts, including the potential success of its robotaxi launch, which could generate significant recurring revenue [5]. - The company has transitioned Model Y production to a new model, plans to release lower-cost vehicles, and aims to mass-produce the Cybercab robotaxi by 2026, with an unsupervised autonomy launch planned for June [6]. - There is skepticism regarding Tesla's ability to meet its robotaxi and full-service driving goals, but the delay may benefit the company as public acceptance of robotaxis increases [7]. Rocket Lab - Rocket Lab's stock has seen a decline of over 6% since the start of 2025, despite the S&P 500 rising by 0.3%, presenting a buying opportunity for growth investors [9]. - Concerns about the company's ability to launch its Neutron rocket in 2025 have contributed to the stock's decline, following a critical report from Bleecker Street Research [10]. - The company remains confident in its 2025 launch timeline for the Neutron rocket and anticipates bidding on U.S. Space Force contracts valued at 5.6billion[11].RocketLabreporteda325.6 billion [11]. - Rocket Lab reported a 32% year-over-year revenue growth to 122.6 million in Q1 2025 and ended the quarter with a backlog of $1.067 billion, indicating strong demand for its services [12]. - As Rocket Lab is still unprofitable, traditional valuation metrics are less applicable, but the recent stock decline offers a lower entry point for forward-looking investors [13].