Got $5,000? These 3 Growth Stocks Are Trading Near Their Lows.

If you can afford to invest $5,000 in the stock market, now is as good a time as any to do so. Although many stocks are trading at high valuations, many others have been taking a beating because of seemingly lackluster results.

As investors have primarily focused on top performers, there are some quality stocks that may be overlooked right now.

Three growth stocks that have been declining this year but have a lot of room to rise in the long run are Figma (NYSE: FIG), Zoetis (NYSE: ZTS), and Pinterest (NYSE: PINS). Although they're near their lows, here's why it can be a smart move to invest $5,000 into these stocks today.

Image source: Getty Images.

1. Figma

Software company Figma went public earlier this year, and while it started out hot, the excitement quickly died down. On Dec. 16, the stock was trading at around $36, which is far lower than where it traded on its first day on July 31, when it opened at $85.

There have been concerns about its valuation because it trades at a forward price-to-earnings multiple (P.E) of nearly 90. But with the company still in the early innings of its growth and with its margins likely to improve over time, now may be a good time to load up on it for the long haul.

Figma's attractively priced design software focuses on collaboration and innovation, which has made it a hit with many businesses; a staggering 95% of Fortune 500 companies use its products.

In the company's most recent quarter, which ended Sept. 30, its revenue rose by 38% year over year, and it raised its full-year guidance. The stock could make for an underrated buy right now.

2. Zoetis

Animal health company Zoetis is another promising growth stock that could be a good buy. Its shares have fallen 24% this year after its latest earnings numbers disappointed investors. Revenue for the quarter ended Sept. 30 rose by just 1% to $2.4 billion, although its net income totaled $721 million and was up by 6%.

According to its numbers, Zoetis has grown its business, on average, faster than the overall animal health market for the past decade. And with a constant focus on innovation and bringing new medications to market, there's reason to remain optimistic that the company will bounce back and improve upon its growth in the future.

With innovation and global expansion, the business still has plenty of levers to help drive growth in the future. Its reduced share price means that it's now trading at a forward P/E of 18, which is lower than the S&P 500 average of 22. The stock also pays around 2% in dividends.

3. Pinterest

Another stock that hasn't been doing well this year is Pinterest, the social media site where users save (or "pin") things that they're interested in. It's down 11%, and experienced a hefty drop when it recently posted earnings numbers. Unfortunately, the company fell short of expectations as adjusted earnings per share came in at $0.38, below the $0.42 that analysts were expecting for the period ended Sept. 30.

A drop after earnings, however, can be a good time to buy a quality stock because the market can sometimes overreact to a miss. Pinterest still generated strong revenue growth of 17% for the quarter, with its sales rising to more than $1 billion. And net income of $92 million was a solid 9% of revenue. Pinterest also has a strong and growing community, which recently topped 600 million monthly active users.

The stock trades at an incredibly low forward P/E multiple of 12. At a $17 billion market cap, its valuation looks light compared with other social media stocks, especially given its strong user numbers.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pinterest and Zoetis. The Motley Fool recommends Figma. The Motley Fool has a disclosure policy.