Industry-leading companies have seen their share prices fall as much as 80% from their highs. Some of the best growth stocks are significantly undervalued by the market and could rebound sharply over the next few years.

Two stocks that are poised to skyrocket off their lows are Roku (ROKU -2.40%) and Corsair Gaming (CRSR -0.29%). Both companies are serving growing industries and offer long-term investors an unbelievably great buying opportunity.

1. Roku

Despite a decade of growth, the streaming market still offers investors promising stocks to buy for long-term gains. Streaming usage increased 21% year over year through May but only accounted for one-third of TV viewing time, according to data from Nielsen Holdings. That leaves a lot of room for growth for the leading services.

Roku stands to benefit as more advertisers begin to shift their spending from traditional TV to digital platforms. Roku is the leading operating system for smart TVs, with 61 million active accounts. Each user on Roku’s platform can be monetized in several ways, including ad-supported content or when they sign up for a subscription to a streaming service. 

Over the last five years, Roku’s revenue, which primarily comes from advertising, has grown sixfold to $2.9 billion. That is a small percentage of the growing $50 billion digital video advertising market.  

The stock is currently off 81% from last year’s highs. With active accounts and platform revenue still growing year over year, it’s only a matter of time before the stock soars again. 

2. Corsair Gaming

The worldwide number of people who play games on a PC is estimated at 1.7 billion. That is up from 1.5 billion before the pandemic. The growth in players is also expanding the addressable market for gaming peripherals, such as mice and keyboards, where Corsair Gaming is one of the leading brands. Gaming peripherals made up a third of Corsair’s total revenue last year.

Corsair also sells PC components, which make up two-thirds of its revenue. Gamers regularly buy new components, such as new memory modules, to keep their PCs performing at their best. Supply shortages of computer parts and processors hurt this side of Corsair’s business last year. Soaring prices for graphics processing units (GPUs) kept many people from being able to afford to upgrade their PCs. 

However, GPU prices are already starting to come down. This should lead to higher demand for Corsair’s products, including computer cases and power supplies, that gamers buy when building a new gaming PC. 

The stock trades at a market-average price-to-earnings ratio of 17 based on this year’s consensus analyst estimate. This valuation doesn’t account for the higher rate of growth Corsair could experience over the next few years. I would buy the stock before the market figures this out.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roku. The Motley Fool has a disclosure policy.

By AKDSEO