The stock market has taken another downward turn in the last couple of weeks, reversing a rebound that started in June. All told, the S&P 500 index is down 18% year-to-date. The bear market of 2022 got a second wind.

So, many investors are stepping away from the stock market right now. That gives investors with a long-term mindset the opportunity to continue buying great companies at a discount. This month, there's good reason to keep a close eye on the three fantastic companies below.

Netflix: Still the most misunderstood stock I know

The stock market can be frustrating sometimes. Video-streaming veteran Netflix (NFLX 1.74%) is shifting its priorities away from maximum subscriber growth and toward sustainable profits, and you'd think that investors would appreciate that newfound bottom-line focus.

Instead, Mr. Market threw a fit when Netflix posted slower subscriber growth in 2022. Netflix's customer rolls are lengthening at a slower pace than they used to. Subscriber growth clocked in at 5.5% in the second quarter of 2022. That's down from 6.7% in the first quarter and 13.6% in the year-ago period. Thanks to this negative trend, Netflix's stock price has fallen 62% lower in 2022. Ouch.

However, Netflix bears are not paying attention to the improving financial picture. Part of the subscriber-growth issue is that the company is raising prices on a market-by-market basis around the world.

As a result, trailing revenues are up by 12.5% year over year. Trailing earnings per diluted share increased by 16.6% over the same period. The company is willing to let a few subscribers go, as long as the top and bottom lines of the income statement are showing healthy gains.

Thanks to this silly market reaction, Netflix shares are trading at historically low valuations. Simply getting back to last November's stock price would triple your investment from today's rock-bottom starting levels. That's only the beginning of a much larger growth story, as digital media streams continue to replace old-school cable and broadcast channels on a global scale -- with Netflix leading the charge.

Netflix's price drop is a big misunderstanding. The company is being judged by an old standard that doesn't apply to its evolving business model anymore. Simply put, Netflix is an incredible buy right now.

Twilio: There's life after COVID-19

Cloud-based communications expert Twilio (TWLO -1.59%) is another undervalued growth stock these days. The stock skyrocketed in the early days of the coronavirus pandemic, as digital voice and video calls suddenly looked like a great idea. But investors were also quick to give up on that idea when COVID-19 vaccines started to reduce the health crisis and many companies leaned away from their remote-work policies.

Now, Twilio's stock stands 85% below the all-time highs of early 2021, and the shares are still sliding downward. It doesn't seem to matter that the company delivers substantial earnings and revenue surprises in every quarterly report, or that top-line sales surged 41% higher year-over-year in the latest business update. The stock is still seen as a pricey growth stock, which is a bad rap these days. Wall Street as a whole prefers low-risk investments in this era of inflation-based nerves, so Twilio shares are changing hands at multi-year lows.

So Twilio looks like a great investment at the moment, though I would understand if you prefer to keep an eye on the stock instead. Maybe you want to keep that cash in your pocket until the unshakable price drop runs out of steam. On the other hand, market timing is closer to gambling than investing, so you would most likely be better off building your Twilio portfolio with several investments over time.

Either way, Twilio's business is booming even if the stock chart might suggest a different financial trend. It would be best if you took advantage of this skyrocketing growth story while the stock was cheap.

Walt Disney: Not your father's House of Mouse anymore

This company requires no introduction. Walt Disney (DIS -1.01%) has been around for nearly a century. This entertainment empire is a global household name, built around an unparalleled catalog of family friendly movies and characters.

But the Disney you see today is actually quite different from the House of Mouse you knew three years ago.

The company shifted gears in response to the coronavirus crisis. The budget flows and management backing that would previously have gone into making more silver-screen movies and related products have been redirected into the media-streaming opportunity. Disney still makes movies intended for the traditional movie theater circuit, but even those titles are quickly finding a new home on Disney+ or Hulu.

Honestly, this strategy shift was already on its way before the pandemic accelerated the process. Direct-to-consumer media streams accounted for 35% of Disney's total revenues over the last three quarters. If the current growth trends continue, streaming services may outweigh linear TV revenues two years from now. And the direct subscriber boost from the early COVID lockdowns is far behind us now, but Disney+ is still soaring.

However, the same surging video-streaming sales that define Disney's growth trajectory also expose the stock to the same risk-averse market trends as Netflix or Twilio. The stock is down by 28% in 2022 and the price drop stretches to 39% on a 52-week basis. We are looking at a media giant with a deep interest in the booming video-streaming market, but the stock chart tells a different story.

You can buy shares of this new and improved version of Disney at a price that would have felt familiar in January 2018. That's a no-brainer buy in my book.