2 High-Growth Stocks That Are Cheap Right Now

With all the volatility negatively impacting the stock market today, these two high-growth stocks are trading for very attractive valuations.

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Volatility has struck the stock market hard, resulting in several high-quality stocks being sold off in droves by investors. Investing in growth stocks does not seem like an ideal approach for risk-averse investors right now, because the instability on the TSX does not seem like it will let up anytime soon.

Experienced investors with a long investment horizon might be looking at the current environment with a different lens. Volatile markets that see various high-quality stocks decline in value on the stock market due to the broader selloff could present an opportunity for them that isn’t available during bullish markets.

Today, I will discuss two high-growth stocks trading for significant discounts right now. Investing in these two high-quality companies could provide you with substantial long-term returns if and when their performance in the stock market recovers.

Lightspeed Commerce

Lightspeed Commerce (TSX: LSPD)(NYSE: LSPD) has been one of the top growth stocks since it became a publicly traded company on the TSX. Lightspeed Commerce is a $5.44 billion market capitalization tech stock that has become a strong force in the point-of-sale and e-commerce industry. Headquartered in Montreal, the tech stock put up a stellar performance in the first few years of trading on the stock market.

The Canadian tech sector went through a significant pullback in the last few months, impacting Lightspeed stock’s performance on the stock market. The release of a damaging short-seller report targeting the company in September 2021 worsened matters, leading to a panic-fueled selloff that worsened its decline, despite a solid financial performance for the company.

At writing, Lightspeed stock trades for $36.62 per share, and it is down by almost 77% from its September 2021 high. It could be an excellent opportunity to pick up its shares at a massive discount.

Shopify

Shopify (TSX: SHOP)(NYSE:SHOP) has been the top growth stock on the TSX since 2015. Shopify is a $131.97 billion market capitalization e-commerce company headquartered in Ottawa. It is one of the largest e-commerce platform and services providers worldwide, but it was not spared by the broad tech sector selloff.

The third-quarter earnings report for fiscal 2021 saw the company’s cumulative gross merchandise volume reach $400 billion, effectively doubling the figure in 16 months. The onset of COVID-19 has been a major boon for the company’s business. Despite a 46% increase in its total revenue between Q3 2020 and Q3 2021, the stock has declined significantly on the stock market.

Shopify stock trades for $1,078.95 per share at writing, down by almost 50% from its all-time high in November 2021. It could be a good time to pick up its shares at a bargain.

Foolish takeaway

It is crucial to remember that investing in high-growth stocks comes with a greater degree of capital risk than with investing in securities with more stable performance on the stock market. Suppose that you already have a well-balanced portfolio to fall back on, and you want to inject long-term growth potential into it. In that case, allocating some of your investment capital to Lightspeed stock and Shopify stock could be ideal.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns and recommends Shopify. The Motley Fool recommends Lightspeed Commerce.

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