The latest meeting by the U.S. Federal Reserve saw it announce the highest interest rate hike since 1994. Despite reassurances in the post-meeting press conference, the U.S. Fed could not stop what was to follow in the next few days. Equity markets plummeted by a substantial margin from the very next day.
The S&P/TSX Composite Index went down by almost 15% from its all-time high. At writing, the Canadian benchmark index is down by 13.63% from its 52-week high. Plenty of stocks across the board are selling cheap.
Many Canadians are worried about their investment returns due to falling prices throughout the stock market. While it might not turn out to be a full-blown market crash, the current downturn is concerning for many.
Not all investors might be worried. Downturns tend to hit the market every now and then. Savvier investors consider these corrections as an opportunity to scoop up shares of high-quality companies at considerable discounts. If you have the cash set aside to invest in bargains on the stock market, here are two stocks you could consider adding to your portfolio.
Jamieson Wellness
Jamieson WellnessĀ (TSX: JWEL) is a $1.39 billion market capitalization health and wellness company headquartered in Toronto. The company designs, manufactures, and sells a wide range of natural health products.
Its performance on the stock market boomed during the global health crisis, establishing Jamieson Wellness as a major player in the industry. It boasts defensive operations and boasts considerable long-term growth potential.
Jamieson Wellness stock trades for $34.25 per share at writing, and it boasts a 1.75% dividend yield. The company has a tonne of long-term growth potential by acquisition and through organic growth. The high-quality company sells essential products that could make it a strong bet for the long haul.
It trades at an over 17% discount from its all-time high at current levels. It could be a viable long-term investment to consider during the current correction.
Enbridge
Enbridge (TSX: ENB)(NYSE: ENB) is a $107.28 billion market capitalization multinational pipeline company headquartered in Calgary. The company owns and operates one of the most extensive pipeline networks in North America. It is responsible for transporting a significant portion of all the traditional energy products used in Canada and the United States. It plays a crucial role in the regionās economy.
Enbridge stock trades for $52.94 per share at writing, and it boasts a juicy 6.50% dividend yield. Enbridge stock is down by over 11% from its 52-week high at current levels. The recent selloff in the market has resulted in a pullback for Enbridge stock.
You could consider adding its shares to your portfolio today or wait for its valuation to drop further for better value. However, there is no way to tell whether it will continue to decline or start appreciating in the coming weeks.
Foolish takeaway
Not all stocks trading for a discount during this market downturn are bargains you need to scoop up. Many stocks have declined in valuation to more reasonable levels during the correction. It is important to do your due diligence to seek high-quality companies likelier to deliver stellar returns when the situation normalizes.
Companies with long-term growth potential and blue-chip companies in oversold territory could be good investments during the current market correction. Jamieson Wellness stock and Enbridge stock, respectively, could be ideal investments for this purpose.
