2 Stocks Down 38% and 40% to Buy Right Now

Rocketing nearly 18% higher since the start of the year, the S&P 500 has maintained the same trajectory it experienced through 2023.

But not every stock has experienced the same upward momentum. In fact, two growth stocks, electric vehicle (EV) maker Rivian (NASDAQ: RIVN) and electric aircraft developer Archer Aviation (NYSE: ACHR) , have declined precipitously in 2024, falling 40% and 38%, respectively. Let's see why two fool.com contributors think the stocks are buys despite their recent slides.

This EV maker has a clear path to success

Howard Smith (Rivian Automotive) : It's still too early to know all the winners or losers in the electric vehicle (EV) sector, but Rivian has chosen a path that could eventually earn it a hefty profit. Even legacy automaker Ford (NYSE: F) seems to be taking notice. But long-term investors haven't yet jumped on board.

In fact, Rivian stock is down 45% year to date. But that sets up a possible opportunity for investors willing to give this aggressive, high-risk stock a place in a portfolio. And now may be the ideal time to take advantage of the lagging stock price. That's because Rivian's business is at an inflection point, with its next-generation vehicles getting close to beginning the production stage. The R2 SUV will have a larger market to tap than its more expensive current R1 pickup truck and SUV models.

But with about 100,000 R1 models already on the road, Rivian has established its brand with consumers. It entered the market for electric pickup trucks and large SUVs before competitors brought new options to market. And, importantly, about 20% of Rivian's revenue last year came from its other niche market -- commercial delivery vans.

Ford was expected to be one of the largest competitors in the electric pickup truck market with its F-150 Lightning. But the company has throttled back production on its EV pickup truck.

The company just announced it would delay the start of production on a new EV plant in Tennessee that now won't begin manufacturing electric pickup trucks until 2027. But, importantly, Ford said it will instead introduce a brand-new commercial van that will begin production in 2026 in Ohio.

That gives Rivian more access to the pickup truck market and shows that a large competitor also sees a profitable market in commercial vans. With a head start in those areas and its share price having dipped, now looks to be a good time to get some Rivian stock.

Archer Aviation can regain altitude in the coming months

Scott Levine (Archer Aviation) : Disrupting urban transportation -- or any industry, for that matter -- is far from simple, especially when a company is reimagining urban transportation the way Archer Aviation is doing. The company plans to do so through offering customers rides on innovative electric vertical takeoff and landing (eVTOL) aircraft. It takes time to realize this vision, and it seems many investors weren't willing to sit patiently by while the company's plans played out. Instead, they decided to collect profits after the stock soared through 2023.

They may have been a little impetuous, though.

Archer Aviation has scored some notable achievements recently, yet it seems the market hasn't taken note. For one, Archer strengthened its financial position as it prepares for commercial manufacturing of its Midnight aircraft. The company's partner, Stellantis, has made several investments in Archer and agreed to provide up to $400 million to help Archer achieve its annual production target of 650 aircraft. This is an essential step since Archer is still in the pre-revenue phase of its development.

Another green flag for the company is that it continues to find buyers interested in purchasing its aircraft. In addition to providing air taxi service directly to those in need of rides to airports, Archer plans on selling its aircraft to operators. United Airlines , for example, inked a deal to purchase up to $1.5 billion worth of Archer's aircraft. At the end of 2023, Archer reported an order book worth up $3.5 billion for its aircraft, but it has been successful finding new customers. With Archer's reporting of its Q2 2024 financial results, the company announced that Future Flight Global intends to purchase up to 116 Midnight aircraft worth about $580 million. Consequently, Archer's order book now stands at almost $6 billion.

Naturally, there's still inherent risk with an investment in Archer, as the company hasn't received all of the necessary Federal Aviation Administration's certifications, and it still has to execute on the manufacturing of its Midnight aircraft -- two critical factors for the company's success.

These growth stocks have huge potential, but take a moment before clicking the buy button

For investors charged up about the growth of the EV industry, Rivian is a great choice now in light of its recent sell-off, while those looking for a higher-risk, higher-reward opportunity may want to take flight with an investment in Archer. In either case, however, it's imperative that investors recognize the risks with these stocks and calculate their positions accordingly.

Howard Smith has positions in Rivian Automotive. Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy .