Just because a stock is cheap compared to its peers or to the wider market doesn't make it an obvious buy. Negative sentiment is often appropriate, after all, and the collective judgment of millions of investors can be right -- much of the time.

In other cases, stocks can be put on the bargain aisle for questionable reasons, including worries about short-term growth. And shares can become cheap because Wall Street has lost interest in a sector while chasing the next big thing.

Let's look at three stocks that seem like bargains for a mixture of these reasons. Read on to see why Garmin (GRMN 0.16%), Okta (OKTA -2.07%), and Chewy (CHWY -7.18%) could deliver excellent returns from here.

1. Garmin

Garmin is posting accelerating sales growth and recently raised its 2023 outlook on both the top and bottom lines. And yet the giant in GPS navigation devices is underperforming the Nasdaq Composite by a wide margin.

That won't last forever. Garmin's business has several characteristics that investors will find attractive, including over 20% operating profitability. Its diverse product lineup spans consumer products like fitness trackers, along with complex aviation and marine navigation platforms.

That portfolio has generated consistent sales growth over the years, notwithstanding the demand pullback last year following the pandemic spike. And the best news is that the stock is reasonably priced today at just 4 times annual sales.

2. Okta

Okta's stock has been highly volatile since its 2022 acquisition of Auth0 created uncertainty around sales and earnings trends. But those clouds are clearing now. In early March, the specialist in digital identity management beat its short-term growth targets and raised its forecast for the year. Sales are now on pace to rise to $2.2 billion in fiscal 2024, up roughly 18%.

Operating losses are an understandable drag on the stock, but these have lessened in recent months. And Okta is posting positive, and accelerating, cash-flow trends today.

The company will update shareholders on its business in late August, but investors don't have to wait until then to buy this growth stock.

3. Chewy

Investors seem concerned about pet supply specialist Chewy and its growth potential. The e-commerce stock is down sharply this year, completely sitting out the rally that has lifted many of its tech peers.

But that pessimism doesn't make a lot of sense. Sales growth was strong last quarter at 15%. Gross profit margin hit a record thanks to higher prices and a tilt in demand toward discretionary pet products. And Chewy is generating positive, although tiny, net earnings.

Yes, the company is still shedding customers following its pandemic-demand spike. Its base of shoppers shrank by 1% last quarter, matching the pace from the last full fiscal year. Investors will need to see a return to growth in that key metric before the stock ends its bearish run.

Engagement trends suggest that could happen soon. Consider the fact that over 75% of Chewy's customers have committed to its subscription-like service. Other good news includes the fact that average annual spending in the first quarter was up 15%. Lastly, look for its push into the Canadian market to add some new growth potential without pressuring earnings. All of that good news is bound to support positive returns for this stock over the long term.