With the S&P 500 down five of the last six weeks, investors seem to fearing the worst.

The broad-market index is on the verge of a correction, consumer confidence is plummeting, and President Donald Trump's tariffs are roiling American industry.

Growth stocks have fallen especially hard, a sign that the market was overvalued and that investors are anticipating sustained economic headwinds. Several high-profile stocks have fallen 50% or more, but savvy investors know that volatility creates opportunity in the stock market.

On that note, let's take a look at two consumer-facing growth stocks that have been cut in half in the last few months.

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1. Deckers

Deckers (DECK 0.33%) might be the most overlooked stock in the footwear and apparel industry. Even after the stock just fell by 50%, shares are still up more than 800% over the last decade.

Deckers owns two of the strongest growth brands in the footwear industry: Hoka and Ugg. Hoka has been grabbing market share in the industry and continues to deliver impressive numbers. In the fiscal third quarter (ended Dec. 31, 2024), Hoka revenue jumped 23.7% to 530.9 million, while Ugg sales rose 16.1% to $1.24 billion, showing the brand has had more staying power than some investors thought a few years ago.

Overall revenue in the quarter rose 17.1% to $1.82 billion, and its profitability impressed as well, as gross margin increased from 58.7% to 60.3%, and earnings per share (EPS) rose from $2.52 to $3 in the holiday quarter. Deckers guided for earnings per share of $5.75 to $5.80 for the full year. With the stock down 50% to $111, that means it trades at a forward P/E of 19, making it cheaper than S&P 500.

While investors were disappointed with guidance calling for 15% revenue growth, that's still a solid clip, and a great growth rate for a stock at its current valuation.

2. Cava Group

Another high-flying consumer discretionary stock that has gotten chopped in half is Cava Group (CAVA 0.93%), the fast-growing Mediterranean fast-casual chain.

Cava's decline seems to owe more to its lofty valuation before its pullback rather than its results or guidance. Cava has just turned profitable so its earnings valuation isn't particularly meaningful, but its market cap had reached $20 billion. Its price-to-sales ratio went above 20 temporarily, a valuation typically reserved for high-growth tech stocks.

However, Cava's recent results have been spectacular. The company reported full-year revenue growth of 35.1% on 13.4% comparable sales growth and same-store sales soared to 18.8% in the fourth quarter.

Cava's profits are also surging as adjusted net income jumped from $13.3 million to $50.2 million. The average sales per restaurant was $2.9 million, essentially on par with Chipotle Mexican Grill, showing Cava's restaurants are generating high volumes in addition to growth.

Cava only has 367 restaurants as of the end of 2024, giving it a long runway for growth. The company aims to grow its store count to 1,000 by 2032, essentially tripling the number of restaurants. Beyond that, there's potential for Cava to grow to several thousand restaurants over the long term if it follows in the footsteps of Chipotle.

At a triple-digit price-to-earnings ratio based on adjusted earnings, Cava is still expensive, but the price is much more reasonable after falling by 50%.

If the economy continues to weaken, Cava's growth could slow, and the stock could fall further, but regardless of those temporary headwinds, the company looks well positioned for long-term growth due to its brand, product, and unique niche in the market.

Over the long term, Cava looks set to be a winner.