4 Growth Stocks to Buy in This Market Correction

Investors should look to snag discounted growth stocks like WSP Global Inc. (TSX:WSP) in this violent market correction.

| More on:
Growing plant shoots on coins

Image source: Getty Images

The S&P/TSX Composite Index plunged 532 points on Monday, June 13. That represented the second-worst point retreat of the year. Canadians should be eager to jump on discount opportunities in this environment. Indeed, the 2020 market pullback illustrated how rewarding the buy-the-dip strategy still is in this new decade. Today, I want to look at four growth stocks that could pay off big if you choose to snatch them up in this market correction before the summer season.

This reeling growth stock is an underrated pick on the TSX

StorageVault Canada (TSX:SVI) is a Toronto-based company that owns, manages, and rents self-storage and portable storage spaces across Canada. Shares of this growth stock have plunged 21% in 2022 as of close on June 15. The stock is still up 20% in the year-over-year period.

This company released its first-quarter 2022 results on May 4. It reported total revenue of $57.5 million — up from $43.3 million in the first quarter of 2021. StorageVault’s net loss improved marginally to $8.6 million in the quarter.

Shares of this growth stock are trading in favourable value territory compared to its industry peers. It also pays out a modest quarterly dividend of $0.003 per share. I’m looking to snatch up StorageVault in this market correction.

Here’s a top equity to snatch up in this market correction

Cargojet (TSX:CJT) is a Mississauga-based company that provides time-sensitive air cargo services across the country. This growth stock has dropped 10% so far this year. Its shares have plunged 17% from the same period in 2021.

The company unveiled its first-quarter 2022 earnings on May 2. Cargojet reported total revenues of $233 million — up from $160 million in the first quarter of 2021. Meanwhile, adjusted EBITDA rose to $83.0 million over $64.2 million in the previous year. Moreover, adjusted free cash flow came in at $42.7 million — up from $35.2 million in Q1 2021.

This growth stock is trading in attractive value territory compared to its top competitors. Cargojet is still on track for strong earnings growth going forward.

Investors can get access to health care with this promising growth stock

Investors looking for exposure to health care should consider Hamilton Thorne (TSXV:HTL). This company develops, manufactures, and sells precision instruments, consumables, software, and services for the fertility technologies market. Its shares have dropped 31% in 2022. That has pushed the stock into negative territory in the year-over-year period.

In its most recent quarter, Hamilton Thorne posted sales growth of 22%. Moreover, gross profit jumped 17% to $6.9 million. Adjusted EBITDA climbed 9% to $2.5 million. This healthcare stock is trading in favourable value territory relative to its industry peers. Investors should consider this promising growth stock in this market correction.

One more growth stock to buy in this market correction

WSP Global (TSX:WSP) is the fourth and final growth stock I’d monitor in this renewed bear market. This Montreal-based company operates in the professional consulting space and services a worldwide client base. Its shares have dropped 22% so far this year. The stock is still up marginally from the same period in 2021.

In Q1 2022, WSP Global delivered revenue growth of 28% to $2.7 billion. Meanwhile, adjusted EBITDA increased 34% to $324 million. Adjusted net earnings more than tripled to $136 million, or $1.16 per share. This growth stock is also trading in attractive value territory in this market correction.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CARGOJET INC. and HAMILTON THORNE LTD. The Motley Fool recommends WSP GLOBAL INC.

More on Investing

Business man on stock market financial trade indicator background.
Tech Stocks

1 Growth Stock Down 50 Percent to Buy Right Now

There are plenty of growth stocks in the market worth considering, but Shopify (TSX:SHOP) looks like one of the best…

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

edit Sale sign, value, discount
Stocks for Beginners

These 3 Growth Stocks Are on Sale and Set to Surge

Some growth stocks are on sale right now that offer massive long-term potential for investors. Here's a trio to consider…

Read more »

Cannabis grows at a commercial farm.
Cannabis Stocks

Why Canopy Growth Stock Could Double in 2024

Canopy Growth (TSX:WEED) stock saw its share more than double in the last two weeks. So, can it do it…

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »

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

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »