3 Growth Stocks Down 80% to 93% to Buy Right Now

It's been three years since the current bull market kicked off, yet investors can still find stocks of competitively strong companies trading at steep discounts. This could suggest severe undervaluation against their long-term growth prospects.

If you're looking for stocks with the potential to claw their way back to the top, the following three are promising candidates.

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1. Unity Software

Unity Software (NYSE: U) is starting to see a return to strong growth after a few slow years. While the stock has rebounded sharply off its 52-week low, the shares are still 82% off their previous peak.

Unity is one of the leading software providers for video game developers. It's widely used in the mobile gaming market and provides tools for game studios to monetize their content through advertising. The company's artificial intelligence (AI) powered advertising platform, Unity Vector, is driving strong growth for its ad network.

Overall, Unity's total revenue was slightly down year over year in the second quarter, but the company appears poised to return to growth in 2026.

Unity Vector is lifting the number of app downloads on mobile devices and in-app purchases, which significantly increases returns for advertisers. Management expects this new tool to drive higher ad spending over time, which is a catalyst for the stock.

The company posted double-digit growth in subscriptions last quarter for its game development software. It also had its 10th consecutive quarter of growth in non-gaming markets, which shows its potential to expand the market for its software. For example, Unity expanded its relationship with leading automakers like BMW that are using its 3D technology to design the graphical interfaces for in-car experiences.

The stock should climb over the next few years. Analysts expect Unity's free cash flow to grow at an annualized rate of 25% over the next several years, and that could send the share price back to previous highs.

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2. Roku

Shares of Roku (NASDAQ: ROKU) fell sharply in 2021 during a slowdown in the advertising market. But it has continued to sign up more users to its streaming platform, putting the company in a strong position to reward shareholders.

The stock has rebounded from its recent lows but still trades 80% off its all-time high. Roku has a solid competitive position in the streaming market with its affordable and platform-agnostic TV operating system. It helps consumers aggregate dozens of top streaming services on one platform.

The company's steady growth in new active accounts in recent years is turning it into a strong contender in the entertainment industry. It ended 2024 with nearly 90 million user accounts, up 12% over the fourth quarter in 2023. A large and growing audience is driving strong growth in advertising, with platform revenue up 18% year over year in the second quarter of 2025.

Roku has a strong tailwind. The connected-TV advertising market is expected to increase from $29 billion in 2024 to $38 billion in 2027, according to Statista. Growing revenue and free cash flow from improving operating efficiencies should propel the stock higher in 2026 and beyond.

image source: Getty Images.

3. Fiverr International

Shares of Fiverr International (NYSE: FVRR) are trading 93% below their previous high. This is while the business continues to increase free cash flow and focus on AI initiatives to drive up revenue.

Economic volatility has made Wall Street lose interest in the gig economy, where Fiverr is a leader in helping freelancers land jobs. The ability to generate growth can depend largely on the health of the economy, but despite recent weakness in the job market, the company saw resilient growth this year, with second-quarter revenue up 15% year over year.

It has 3.4 million annual active buyers on its marketplace, but this could expand in the coming years. Fiverr is seeing strong demand for AI-related services. For example, demand for AI consultants on its platform was up 37% year over year in the second quarter.

While management anticipates some softness in growth in the second half of the year due to an uncertain economic environment, it anticipates strong demand for AI services to offset these headwinds. The recent launch of its AI-powered Shopify Store Builder contributed to a 84% year-over-year increase in services revenue last quarter.

With the stock trading at a cheap price-to-free cash flow multiple of 9, investors are getting a bargain. Fiverr appears to be well positioned to capitalize on a rebound in the job market, which should send the stock higher over the next few years.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fiverr International, Roku, Shopify, and Unity Software. The Motley Fool has a disclosure policy.