FIRE SALE: 2 Cheap Canadian Growth Stocks to Buy Now!

After all the recent volatility in markets lately, these two cheap Canadian growth stocks are some of the best to buy now while they are still undervalued.

| More on:
edit Sale sign, value, discount

Image source: Getty Images

Any time there is volatility in the markets, and our stocks are selling off in value, it can be a discouraging feeling. However, these selloffs are only temporary, and if you’re investing for the long run, they shouldn’t have any effect on your long-term performance. In fact, these situations can actually be beneficial, as there are now several cheap Canadian growth stocks to buy.

The key is not just to buy stocks because they are cheap. It’s far better to find a higher-quality company that can grow for years, even if it’s not necessarily as undervalued as other, lower-quality businesses.

So, if you’re looking to take advantage of the recent volatility in the markets, here are two cheap Canadian growth stocks that are no-brainer buys at these prices.

A top Canadian financial stock

One of the fastest-growing stocks over the last five years has been goeasy (TSX:GSY), the specialty finance stock that’s main business is to provide consumer loans to below prime borrowers.

Just how fast has goeasy been growing? From 2017 to the end of 2021, goeasy investors earned a total return of 735%. Furthermore, the stock grew its revenue and net income by 107% and 689%, respectively.

This has made goeasy one of the best growth stocks to own, and because it’s recently sold off and is considerably cheap, it’s certainly one of the best stocks to buy now. The stock is down almost 20% year to date and roughly 33% from the high it reached back in September.

Plus, because goeasy is still relatively small, with a market cap of just $2.4 billion, it still has a tonne of potential and room to grow. So, if you’re looking to buy a top Canadian growth stock while it’s cheap, goeasy is certainly one of the best to consider.

An incredible retail stock expanding rapidly across the United States

In addition to goeasy, another high-quality Canadian stock that has consistently posted impressive growth numbers is Aritzia (TSX:ATZ), the vertically integrated women’s fashion company.

Aritzia has done an incredible job building its brand, which is known among consumers as a high-quality, eco-friendly company that sells everyday luxury goods.

Aritzia’s growth story has been incredible, with the company opening tonnes of successful boutiques across Canada over the years and now expanding rapidly across the U.S.

In the last five years, Aritzia has more than doubled its revenue and grown its net income from an annual loss of $50 million to a gain over the last 12 months of more than $135 million.

Perhaps the most impressive fact of Aritzia’s business, though, is that these boutiques’ main purpose is to help advertise Aritzia’s goods and drive more sales on its e-commerce site.

The fact that these stores are cash cows themselves is just a bonus and shows how popular Aritzia is among consumers. Last year, roughly half the sales Aritzia did came from e-commerce, and that was without as many capacity restrictions as we saw in 2020.

So, if you’re looking for a top growth stock to buy while it’s cheap, Aritzia has tonnes of long-term potential.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. 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, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa owns goeasy Ltd. The Motley Fool recommends ARITZIA INC.

More on Stocks for Beginners

stock market
Stocks for Beginners

Where Will the Bear Market Bottom? History Offers a Very Clear Clue

Embrace market corrections by taking the opportunity to buy quality stocks like Fortis (TSX:FTS) at cheaper valuations!

Read more »

A stock price graph showing declines
Dividend Stocks

Here’s Why I’m Confident About Investing Through the Down Market

There is no bear market in history that has not been followed by a bull cycle. Rather than fret over…

Read more »

A bull and bear face off.
Stocks for Beginners

2 TSX Stocks to Buy in a Recession

Are you worried about a recession? Top TSX stocks like Fortis and Dollarama may be perfect investments for a future…

Read more »

edit Close-up Of A Piggybank With Eyeglasses And Calculator On Desk
Stocks for Beginners

How to Turn a $6,000 TFSA or RRSP Into $600,000

You can retire comfortably early if you do some serious retirement planning. Investing regularly in your TFSA and maybe your…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Stocks for Beginners

3 TSX Stocks You’ll Wish You Bought at These Prices

Stocks are currently trading at unbelievable discounts. Here are three TSX stocks you’ll wish you had bought at these prices!

Read more »

funds, money, nest egg
Stocks for Beginners

No Time to Invest? The Easiest Way to Create a Million-Dollar TFSA

Here’s how investors can take advantage of a recent market crash to create a million-dollar TFSA with ease.

Read more »

Volatile market, stock volatility
Bank Stocks

Here’s Why I’m Confident About Investing in a Down Market

This down market continues to trade near 52-week lows, providing you with a small window of time where you can…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Stocks for Beginners

2 Safe Stocks to Buy for a Bear Market

As the market conditions continue to worsen as we begin the fall, safe stocks, such as these two, are some…

Read more »