Growth stocks were hot earlier this year, and some growth names are still relatively hot, as they have delivered much better Q1 year-over-year earnings growth metrics compared to 2022. However, I’d argue that most growth names are currently trading near a fair valuation right now, with some growth names like Nvidia (NASDAQ:NVDA) trading at very steep prices.

That said, there are still some bargains in the market you should snap up before they pull off a similar recovery. Many growth stocks that surged this year did not go up simply because of market sentiment. They did so because their underlying businesses improved. Whether that’s due to substantially cutting costs or restructuring their business toward sustainability, these are catalysts that big money investors heavily reward. Thus, targeting growth stocks that are trading at depressed prices is a good idea right now.

Here are three that I believe you should look into.

Snapchat (SNAP)

Snapchat (NYSE:SNAP) is one of the few growth stocks that has not recovered from the pandemic-induced sell-off in 2020. The stock is still down nearly 55% from its pre-pandemic peak. However, I believe this is a great opportunity to buy the dip before the stock resumes its upward trajectory.

Notably, the company continues to have difficulties even in the near term. It reported 383 million daily active users (DAUs) in Q1 2023, up 15.4% year-over-year, which is the only positive news for Q1. It missed analysts’ expectations on revenue and earnings, posting $989 million in revenue (down 7% year-over-year).

However, this pullback is unlikely to last in the long run, as analysts expect sales growth to hit 15% next year. Snapchat is also currently trading at a forward price-to-sales ratio of 3.11-times, significantly lower than its peers and historical average.

Analysts currently have mixed feelings about Snapchat, with an average price target of $9.97, implying 15.8% upside from the current price. I think this is a conservative estimate, given that when growth does return to this sector, the premium here will be much steeper. We are also looking at a multi-year timeframe, which is plenty of time for Snapchat to start filling the ARPU gap between itself and its peers.

Of course, that’s not all. I remain bullish on SNAP because of another factor, TikTok. A ban on the app is still on the cards, and Snapchat is as close as it gets to being a TikTok replacement.

Block (SQ)

Block (NYSE:SQ), formerly Square, is a fintech company providing payment solutions for small businesses and individuals.

It is another growth stock that has been unfairly punished by the market this year. The stock is down about 80% from its record high in Feb 2021. However, I think this is a temporary setback for a company that has a bright future ahead.

Why? Because Block has a unique value proposition that combines payment processing with financial inclusion and innovation. The company serves millions of underbanked and unbanked customers who rely on its services for their everyday needs. The company reported 20 million monthly active Cash App card users in Q1 2023, up 34% year-over-year. It also generated $1.71 billion in gross profit (up 30% year-over-year) and EBITDA of $368 million, up 89% over the same time frame.

Unlike Snapchat, analysts are almost unanimously optimistic about Block’s future performance, with an average price target of $89.7, implying 61.7% upside. I think this is a reasonable estimate within one year, and 300%-plus gains are possible by 2025 if the company starts to accelerate its growth even more.

Roku (ROKU)

Roku (NASDAQ:ROKU) is a leading streaming platform that connects users with online content providers such as Netflix (NASDAQ:NFLX), Disney+ (NYSE:DIS), and Amazon (NASDAQ:AMZN) Prime Video. It also offers its own ad-supported streaming service called The Roku Channel, which features live TV, movies, and shows.

Roku is benefiting from the secular shift to streaming and cord-cutting, as more consumers opt for online video entertainment over traditional cable TV. The company estimates that over half of all U.S. households will be cordless by 2024, creating a huge opportunity for Roku to capture more viewership and advertising dollars.

The company reported 71.6 million active accounts in Q1 2023, up 17% year-over-year. It also reported $741 million in revenue, nearly unchanged since Q1 2022. Analysts expect sales to start sharply rebounding next year, delivering 16.6% growth.

Analysts are also positive about the stock’s outlook, with an average price target of $70. I think this is a realistic estimate for one year, but considerable gains are likely when the advertising sector starts to pick up pace. That may not happen this year or even next year. But I believe it is inevitable that ROKU will reach a much higher valuation within the next two-to-three years and triple in value.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.