3 Growth Stocks Down 25% to 54% to Buy Right Now

The article highlights Hexcel, GXO Logistics, and ON Semiconductor as three growth stocks currently trading significantly below their all-time highs, presenting long-term investment opportunities despite near-term challenges. Hexcel is positioned for aerospace recovery as Boeing and Airbus ramp up production, benefiting from increased composite material adoption in new aircraft, with double-digit revenue growth projected by 2026. GXO Logistics, an e-commerce logistics provider, is overcoming a post-pandemic growth normalization, with earnings expected to grow double-digits by 2026-2027. ON Semiconductor, focused on power and sensing for EVs and industrial applications, faces temporary EV spending cuts but maintains strong secular growth exposure, making all three attractive for investors with a long-term horizon.

Analysis

Hexcel (HXL), GXO Logistics (GXO), and ON Semiconductor (ON) are identified as growth stocks currently trading significantly below their all-time highs, with HXL down 25%, GXO down 48%, and ON down 54%. These companies operate in long-term growth markets but are navigating temporary weaknesses, presenting potential opportunities for investors.

Hexcel is positioned for substantial growth from increasing composite material content in new aircraft, with the Boeing 737 MAX at 15% and wide-body jets like the 787/A350 at 50% composite content. Despite recent production ramp-up struggles by Boeing and Airbus, Wall Street projects double-digit revenue growth for Hexcel by 2026-2027 and a near-doubling of net income from 2025 to 2027.

GXO Logistics is recovering from a post-lockdown e-commerce growth normalization, with organic revenue growth expected to reach 3.5%-6.5% in 2025 and double-digit earnings growth by 2026-2027. ON Semiconductor, exposed to EV and industrial sectors, faces near-term headwinds from reduced EV spending due to high interest rates but retains strong long-term secular growth potential. All three present substantive upside potential for investors tolerant of near-term disappointment.

Key Decisions for Investors

• Consider Hexcel (HXL) for long-term aerospace exposure, capitalizing on anticipated increases in aircraft production and higher composite material adoption in new models.
• Evaluate GXO Logistics (GXO) for a rebound in e-commerce logistics, noting its projected organic revenue growth acceleration in 2025 and double-digit earnings growth by 2026-2027.
• Monitor ON Semiconductor (ON) for a potential recovery in EV spending, while acknowledging its strategic positioning in long-term secular growth trends across automotive and industrial sectors.
• Assess the risk-reward profile of these companies, given their significant discounts from all-time highs and the potential for near-term volatility.