2 Stocks Down 32% and 90% to Buy Right Now

The market’s doldrums of 2022 have turned into durable tailwinds. The S&P 500 index has gained 20% over the last year, and fears of a recession that never arrived have given way to an official bull market.

But not every long-term winner has gotten the bullish memo yet, so savvy investors should be keeping an eye out for potentially undervalued growth stocks. Right now, Fiverr International (NYSE: FVRR) and Airbnb (NASDAQ: ABNB) stand out as two of the best investment ideas in Wall Street’s bargain bin.

Fiverr: A hidden gem in the gig economy’s crown

Anders Bylund (Fiverr International): In the rapidly evolving gig economy, Fiverr International stands out for its resilience but also for its remarkable potential for long-term growth. Amid a bustling marketplace of freelance platforms, Fiverr’s strategic position and innovative approach pave the way for its sustainable expansion, yet it also sports a valuation that might raise eyebrows for its modesty.

Fiverr’s top line has increased by 86% over the past three years. Its free cash flow quintupled over the same span. However, Wall Street’s market makers ignored these healthy business trends. Instead, Fiverr’s recent stock price action has been inspired by its negative earnings and the deeply mistaken idea that the end of the COVID-19 pandemic would spell the end of the company’s growth.

So long-term Fiverr shareholders have taken a 90% haircut in three years. These days, the shares change hands at the modest valuations of 3.4 times sales, 19 times free cash flows, and 14 times forward earnings estimates. Yes, the same Wall Street pros who brushed off Fiverr’s cash-based success in recent years have changed their tune with downright bullish bottom-line estimates for 2024.

It’s about time, too. I’m inspired by the company’s relentless pursuit of innovation. From the launch of Fiverr Enterprise, designed to streamline corporate freelance engagements, to the introduction of AI-driven tools like the Fiverr Neo chatbot, the…