While the broader market may be trading near record highs, not every stock has been swept up in the recent rally. In fact, some promising growth stocks have seen their share prices decline, presenting savvy investors with an opportunity to capitalize on their long-term potential. In this article, we'll explore three such discounted growth stocks that are worth considering, despite the current market conditions.

Uncover the Hidden Gems: Discounted Growth Stocks Primed for Comeback

Roku: Streaming Dominance and Untapped Potential

Roku (ROKU) has faced a significant setback, with its shares trading 28% below their late-2023 high and a staggering 84% off their 2021 peak. However, this presents a compelling opportunity for investors to capitalize on the company's long-term growth prospects. Roku's streaming ecosystem commands a dominant 37% market share in North America, far outpacing its nearest rival, Amazon's FireTV platform, which holds only 15% of the market. This market dominance is not only a testament to Roku's brand recognition but also a testament to the strength of its platform.Moreover, Roku's own ad-supported streaming service, The Roku Channel, has become a significant player in the streaming landscape, with viewership that surpasses industry giants like HBO Max and Paramount+. This positions Roku as a key player in the rapidly growing streaming industry, which is expected to grow at an average annual pace of 21% through 2034, according to Precedence Research.Despite the recent guidance disappointment, Roku has a history of consistently beating analysts' earnings estimates, underscoring the resilience of its business model. As the company continues to invest in its future growth, the market's current pessimism may be short-lived, presenting a compelling opportunity for investors to capitalize on Roku's long-term potential.

Plug Power: Embracing the Hydrogen Revolution

Plug Power (PLUG) has had a tumultuous journey, with its stock price plummeting 97% from its 2021 peak. However, this steep decline may be masking the company's long-term potential in the rapidly evolving hydrogen fuel cell market.Hydrogen fuel cells, the core of Plug Power's business, are poised to play a crucial role in the future of energy production. These clean, carbon-free technologies offer a promising alternative to traditional fossil fuels, with the potential to power a wide range of applications, from forklifts and automobiles to buildings. As the world increasingly embraces sustainable energy solutions, the global fuel cell market is expected to grow at an annualized pace of nearly 26% through 2032, according to Straits Research.While Plug Power has faced challenges in the past, including recent revenue shortfalls, the company's long-term prospects remain compelling. As the hydrogen fuel cell industry gains traction, Plug Power's expertise and established position in the market could position it as a key player in this rapidly evolving landscape. The current market pessimism may be an opportunity for savvy investors to capitalize on Plug Power's potential as the hydrogen revolution unfolds.

Arm Holdings: The Brains Behind the Future

When it comes to computer processors, the names that typically come to mind are Intel, Qualcomm, and Nvidia. However, Arm Holdings (ARM) is quietly emerging as a force to be reckoned with in the semiconductor industry.Arm's processor architecture offers distinct advantages, particularly in terms of power efficiency, making it well-suited for mobile devices and data centers tackling demanding artificial intelligence (AI) workloads. This has not gone unnoticed, with tech giants like Apple choosing to incorporate Arm-based processors in their latest AI-capable iPhones.Moreover, the adoption of Arm-based processors is extending beyond mobile devices, with data centers increasingly turning to Arm-based solutions as an alternative to the traditional offerings from Intel and Advanced Micro Devices. This trend is further bolstered by Arm's long-term licensing agreement with Apple, which grants the tech giant the rights to use Arm's intellectual property until at least 2040.As a predominantly licensing-based business model, Arm generates consistent and high-margin revenue, with its processors found in nearly half of the world's processors and almost all smartphones. Despite a 28% pullback from its July highs, Arm's long-term growth prospects remain compelling, as the industry continues to embrace the power and efficiency of its processor architecture.