After the stock market correction that we saw in the first half of 2022, many growth stocks have lost tonnes of value and have quickly become some of the best stocks to buy now.
Growth stocks aren’t all the same, though. While there are some that are ultra-cheap and could continue to sell off if the market environment worsens, there are also defensive growth stocks that continue to protect investors’ capital much better.
Defensive growth stocks can be more resilient and less volatile than traditional growth stocks, such as an early stage tech company. And over the long run, they continue to offer attractive potential.
The majority of these stocks are still selling off and, therefore, offering long-term investors the chance to buy at a discount.
However, because they’re selling off to a lesser degree, they’re also showing how well they can protect investors’ capital. And because they have such high-quality and defensive operations, they continue to generate attractive cash flow as well.
So, if you’re worried about a recession or just looking for high-quality growth stocks that can perform well in this environment, then here are two of the best to buy now.
One of the best long-term growth stocks to buy now
One of the best and most consistent growth stocks in Canada over the last decade and a highly resilient stock to buy now is Alimentation Couche-Tard (TSX:ATD).
The stock has grown rapidly for years, mostly by acquisition. However, despite this long-term strategy, Couche-Tard’s operations are all highly defensive.
Couche-Tard owns both gas stations and convenience stores all over the world. These are businesses that do see impacts on sales from recessions or factors like surging inflation. However, the impact on sales is much less than on other discretionary businesses.
Therefore, a stock like Couche-Tard may fall in value slightly if the valuation investors are willing to pay falls. But the impact it sees on its finances should be minimal and, more importantly, manageable.
Furthermore, because Couche-Tard is such a high-quality operator and always looking to grow value over the long haul, I wouldn’t be surprised to see the stock use an opportunity like this pullback in markets to make more acquisitions at attractive valuations.
Therefore, it’s certainly one of the best growth stocks to buy and hold through this environment and beyond.
A high-quality wellness company offering years of growth potential
Another one of the very best and most reliable growth stocks to buy for this environment is Jamieson Wellness (TSX:JWEL).
Jamieson is actually another long-term growth stock, much like Couche-Tard. The company hasn’t grown as much by acquisition and has also generated attractive organic growth in recent years. With that being said, though, Jamieson just made a major acquisition of a U.S supplement business, which improves its long-term potential considerably.
What’s so attractive about Jamieson Wellness is that because it sells vitamins and other wellness products, its sales are highly robust, making the stock one of the best to buy and hold for years.
It offers an impressive balance of defence and long-term growth potential, which is why it’s one of the best stocks you can buy today.
After its recent acquisition, the stock surged slightly, as it was clear what a bright future the company has. However, with market conditions worsening since then, Jamieson’s stock is once again trading at an attractive discount, making it one of the best defensive growth stocks to buy now.
