Despite some stock market jitters in recent weeks, the S&P 500 index is down less than 5% from its all-time high. Investors who were hoping for steep discounts on some of their favorite stocks might be left wanting, but there are still some bargains ready to be scooped up.

Stock for trailblazing enterprise artificial intelligence company C3.ai (NYSE:AI) is currently down over 70% from its highest-ever price set earlier this year, and some Wall Street analysts think it could more than double from here. And stock for transformative digital real estate company Zillow Group (NASDAQ:Z)(NASDAQ:ZG) has fallen by more than 50% from its 52 week high. It could be an incredible opportunity to buy a slice of the future of the home buying industry.

Here's why they're two of the best-discounted stocks you can buy at the moment.

An engineer sitting at a desk with a hard hat on, working on computers.

Image source: Getty Images.

1. The case for C3.ai

This artificial intelligence specialist had a very successful stock market debut in December 2020, closing at a per-share high of $161 within weeks of listing at $42 a share. But investors have expressed impatience with the company's moderate growth rates this year, and the stock now languishes below $50 a share. That might present an opportunity for those of us with a long-term investment horizon.

Most companies don't have the financial resources, or the necessary talent, to develop AI technology in-house. C3.ai offers ready-built customizable AI applications that reduce the need for coding by 99%, and it currently serves a broad portfolio of global industries.

Its collaboration with oil giant Baker Hughes is a prime example of C3.ai's game-changing abilities, as its suite of products help predict drilling equipment failures, improve efficiency, and reduce carbon emissions. 

C3.ai's technology is so attractive that both Microsoft and Alphabet's Google have signed collaborative partnerships with the company to build specialized AI tools aimed at better serving their customers. 

Metric

Fiscal 2020

Fiscal 2021

Fiscal 2022 (Estimate)

CAGR

Revenue

$156 million

$183 million

$245 million

25%

Data source: C3.ai. CAGR = Compound Annual Growth Rate

While C3.ai is growing revenue by 25% each year, the recent fiscal second quarter revealed an acceleration in the company's performance. It added a staggering 85% more customers on a year-over-year basis and grew revenue by 29%.

Additionally, its fiscal third-quarter guidance indicates revenue growth will speed up even further to 37%. Given the improvement, it's not surprising Wall Street firm Wedbush Securities maintains a price target of $100 on the stock.

With a long-term view, buying C3.ai at the current price could mean eventually doubling your money.

A smiling couple surrounded by boxes, sitting on a couch cushion on the floor of a home.

Image source: Getty Images.

2. The case for Zillow

Through Zillow Group's nine brands, it has become a digital one-stop shop for buyers and sellers of real estate. The only industry segment Zillow doesn't operate in is traditional real estate broking, because that's exactly what it's trying to disrupt. 

The company's primary focus is iBuying, where it acquires homes directly from willing sellers and then flips them for a profit. It cuts months out of the sales process for the seller, but it also cuts out the real estate agent, saving up to 2.5% in commissions -- and it arranges all of this digitally. Overall, it's an excellent value proposition for consumers, who collectively have sold over 8,250 homes to Zillow in the last 12 months.

Zillow's share price sits at $95, over 50% lower than its all-time high of $202 set earlier this year. The pandemic triggered a boom in the digital economy so investors flocked to companies like Zillow, but as things went back to normal concern crept in that demand for its services would drop off. 

But there's no sign of that just yet for Zillow, highlighted by its purchase of a record-high 3,805 homes in the second quarter -- more than double the previous high it set in the previous quarter. These will need to be sold and that means strong revenue growth might be on the horizon, especially since the housing market remains the strongest it has been in 30 years. 

Metric

2018

2021 (Estimate)

CAGR

Revenue

$1.33 billion

$6.59 billion

70%

Data source: Zillow Group. 2021 estimate from Yahoo! Finance. CAGR = Compound Annual Growth Rate

While iBuying makes up 60% of Zillow's revenue, the remaining 40% is a combination of software services that it sells to independent real estate agents, mortgage lending, and even closing (title and escrow) services. They're contributing to its rapid 70% yearly growth, which is impressive given the amount of revenue Zillow is generating.

Analysts expect the company will generate over $10 billion in revenue during 2022 for the first time ever, so this current dip in share price might be the one to buy especially if you're looking for long-term growth. Zillow is shaping up to be the future of the $36 trillion U.S. real estate market, after all. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.