Wall Street often puts stocks on the discount rack for good reasons. A company might be facing a new competitive threat, for example, that harms its long-term earnings potential. An expensive and ill-timed acquisition could do the same thing by distracting management with an ultimately value-destroying project.

Sometimes stocks go on sale for the wrong reasons, though, like a temporary industry downturn. These cases lay the groundwork for strong returns if you're willing to invest in shares when pessimism is high.

Let's take a closer look at a few of these discounted stocks that should recover their momentum. Read on for some reasons to like Home Depot (NYSE: HD), (NYSE: CHWY), and Crocs (NASDAQ: CROX) right now.

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Source Fool.com