2 growth stocks down 23% or more to consider for an ISA right now
Growth stocks have had a tricky few months, with many falling 20% or more as fears of an AI bubble grow. However, for those with the nerve to invest through volatility, I think the following pair of growth stocks are worth digging into.
On
First up is On Holding (NYSE:ONON), the Swiss firm behind the premium sportswear brand.
The stockâs down 33% since January due to tariff uncertainty and weak consumer spending. Both these challenges are obviously not ideal for the business.
Yet, they haven’t held back the brand’s impressive growth trajectory. In the first nine months of 2025, net sales increased 32.6%, or 37.3% on a constant currency (CC) basis. This came from both direct-to-consumer (+39.2%) and wholesale (+33.1% at CC) channels.
Sales are surging worldwide, with very impressive growth in Asia Pacific. Net sales were up 115.3% there in the first nine months.
The brand’s premium positioning — based on “craftsmanship, precision and design excellence” — is also driving industry-leading margins. A gross margin of 62% is well above Nike‘s 42%, as the company continues to have success targeting a more affluent customer.
I’m not really a big spender, but I did recently buy a pair of On’s next-gen Cloudvista 2 running shoes. I have to say, they’re amazing, and I can see why they’re quickly becoming the gold standard among runners. The New York Marathon women’s winner this year ran in a pair of On trainers.
That said, I did baulk at the firm’s £105 jogging bottoms recently at JD Sports. I opted for the cheaper Adidas ones instead.
Again though, the premium price tags aren’t stopping growth, as the company sold over 1m apparel units in a single quarter for the first time in Q3. And as it opens more stores in major cities, management sees a huge opportunity to grow apparel sales.
For 2026, On expects for sales growth of at least 23%, though it tends to offer conservative guidance. So the figure could well be higher.
Right now, the stock trades for 29 times forward earnings, falling to 22 by 2027. That’s not expensive for a fast-growing firm sporting premium profit margins and eyeing a long runway of growth.
Filtronic
Turning to the UK, we have Filtronic (LSE:FTC). It develops and manufactures radio frequency systems and components.
The share price took off like a rocket (pun intended) last year when Filtronic announced a partnership with Elon Musk’s SpaceX to supply modules for the ballooning Starlink constellation. However, it’s pulled back 23% since the summer.
The SpaceX tie-upâs already resulted in record orders for the £285m market-cap company. But the downside to this is that itâs increased customer concentration risk significantly.
Put simply, if anything goes wrong with the SpaceX partnership, the stock would be in big trouble.
Nevertheless, it’s worth pointing out that the firmâs having success diversifying its customer base. In July, it inked a £13m contract with defence giant BAE Systems, and earlier this month won a â¬7m multi-year contract for a European satellite constellation programme.
The stockâs trading at 34 times forward earnings. While not an obvious bargain, it could fly much higher in the years ahead, with Filtronic perfectly positioned to capture more SpaceX and defence contracts.
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Ben McPoland has positions in BAE Systems and On Holding. The Motley Fool UK has recommended BAE Systems, Filtronic Plc, Nike, and On Holding. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
