The S&P 500 and Nasdaq Composite are still up big on the year. But a pullback in mega-cap growth stocks, including the "Magnificent Seven," has sent the major indexes down.

Tesla is in the negative year to date, while Nvidia is down over 10% in the last month. Despite the sell-off in these popular names, there could be even better stocks out there to buy now.

Here's why these three fool.com think Rocket Lab (NASDAQ: RKLB), Hexcel (NYSE: HXL), and Enphase Energy (NASDAQ: ENPH) are three growth stocks that are worth a closer look.

The sky's the limit with Rocket Lab stock

Scott Levine (Rocket Lab): Massive market opportunity? Check. Industry leader? Check. With these two conditions met, it's clear that Rocket Lab is an ideal consideration for investors seeking significant growth.

According to business research firm McKinsey, the global space economy is expected to soar to $1.8 trillion in 2035 from $630 billion in 2023. And Rocket Lab already holds a prominent position: Its Electron rocket is the second most-frequently launched U.S. rocket.

With 50 launches, the Electron rocket -- suitable for small satellites placed in low Earth orbit -- has deployed 190 satellites. And the company expects to achieve a record number of launches in 2024, illustrating how the company's services remain in high demand.

Further proof of how customers are increasingly seeking the company's launch services comes from its growing backlog. After having a backlog of $494 million at the end of the first quarter 2023, the figure stood at $1.1 billion at the end of the first quarter this year.

While Rocket Lab represents a great opportunity, it's important to recognize that investors shouldn't expect growth to occur overnight. Working to expand its offerings, management is developing Neutron, a rocket capable of deep-space missions and human spaceflight. An endeavor such as this requires a significant capital investment, so don't expect the company to achieve profitability in the next year or two.

Nonetheless, it is progressing toward breaking even, and patience should be rewarded as the company continues upward. Should it report a consistently shrinking backlog, however, that would be a red flag leading investors to reevaluate its situation.

The dip in Hexcel's share price is a buying opportunity

Lee Samaha (Hexcel): Now, I know what you are thinking, and you have a point. How can a company that just downgraded its full-year 2024 revenue, earnings, and cash flow guidance be a strong growth candidate? The answer lies in appreciating the reasons for the downgrade and the company's long-term prospects.

Hexcel produces advanced graphite composites used in commercial aerospace (60% of sales), space and defense (30%), and industrial applications (10%). There's very little aftermarket demand, so its vital end market is original equipment manufacturing (OEM) in commercial aerospace.

Unfortunately, Boeing's well-documented delivery delays this year and Airbus' recent announcement that it's now targeting 770 deliveries this year instead of the 800 previously forecast have put pressure on Hexcel's near-term sales.

In both cases, these are delivery pushouts, not cancellations. Meanwhile, the trend toward increased composite content on newer planes continues. In addition, Boeing and Airbus are committed to ramping up delivery rates to meet their multiyear backlogs.

Everything points to Hexcel's end markets growing over time, and that's why management is maintaining its forecast for overall sales to improve by 10% to 12% annually from 2024-2026, with commercial aerospace sales growing at an annual rate of 12% to 16% over the same period.

With management expecting at least $800 million in free cash flow over the next few years (representing 15.3% of the current market cap), Hexcel looks excellently priced for a growth stock, even if it's facing some near-term headwinds.

Enphase is turning the corner

Daniel Foelber (Enphase Energy): Enphase soared 12.8% on July 24 after reporting second-quarter earnings. The results missed analyst expectations, but third-quarter guidance was good, signaling that Enphase might finally emerge from its multiyear slowdown.

It's been an extremely challenging period for the solar energy industry. Bankruptcy concerns are mounting for SunPower, which is a pioneer in the space. Other companies are laying off workers and experiencing unfilled or unpaid orders. The Invesco Solar ETF, which tracks the industry, is at a four-year low. The list goes on and on.

Enphase has been one of the stronger players in the space. The stock is still down year to date, but it is up nearly 60% from its 52-week low. The company has been clear about setting realistic expectations for what investors can expect from different end markets, the timing of new product rollouts, and how that affects distributors and lead times.

During its first-quarter earnings call, management discussed optimism for the second half of the year, including increased California revenue. The company reiterated similar sentiment during the second-quarter call, which is ultimately why its guidance is so upbeat.

For the third quarter, it is guiding for $370 million to $410 million in revenue and gross margins of 45% to 48%, including the benefit of Inflation Reduction Act tax credits.

For context, Enphase earned $566.8 million in revenue in the first half of 2024, compared to $1.44 billion in the first half of 2023 -- a decrease of around 60%. However, it earned $551.1 million in the third quarter of 2023. If Enphase hits the midpoint of its new third-quarter guidance range, it would mark a 30% slowdown compared to the same period last year.

Enphase is still generating poor results, but it does seem to be turning things around rather quickly. Since the market cares more about where a company is headed than where it has been, it makes sense that the stock price has recovered off its lows while so many other solar stocks have not.

Enphase also has a rock-solid balance sheet, exiting the quarter with $1.65 billion in cash, equivalents, and marketable securities compared to $1.2 billion in long-term debt. It is also generating positive free cash flow -- including $117.4 million in the recent quarter.

In sum, Enphase's sales are down but it isn't bleeding cash. The business seems poised for a recovery, making the stock a great buy if you're looking to invest in the industry.

Should you invest $1,000 in Rocket Lab USA right now?

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Daniel Foelber has positions in Enphase Energy. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enphase Energy, Nvidia, and Tesla. The Motley Fool recommends Hexcel and Rocket Lab USA. The Motley Fool has a disclosure policy.

Instead of Buying the Dip on "Magnificent Seven" Stocks Like Nvidia and Tesla, Consider These 3 Growth Stocks was originally published by The Motley Fool