When markets face significant headwinds, and stocks across the board are struggling to gain or even hold their value, it can be frustrating for investors. In the last year and a half, we’ve seen some of the best stocks on the market, including high-quality growth stocks, continue to trade at significant discounts and offer investors a significant opportunity to buy now.
These environments can be frustrating, though, and the longer they last, the more it can seem like the market may never recover.
History has shown time and again, though, that eventually, both the stock market and economy will see a turnaround, which is why it’s so important for investors to seize the opportunity today and add the best companies with the highest growth potential to their portfolios, while they can be bought at attractive discounts.
With that in mind, if you have cash on the sidelines and have been waiting to pull the trigger, here are two perfect growth stocks to buy now while they are cheap and hold for years to come.
This financial growth stock is one of the best investments to buy now
One of the most impressive growth stocks over the last few years, especially in the financial sector, has been goeasy (TSX:GSY), the specialty finance stock.
goeasy has been one of the top growth stocks to buy due to its business model, lending to higher-risk borrowers that can’t get loans from traditional financial institutions such as banks. In addition to this business model, though, the company has been well run, managed its loan book well, and kept charge-offs low.
This has led to impressive and consistent growth in both its revenue and profitability. And now, after the market and economic environments have softened over the last year and with goeasy facing its own headwinds, the stock has become ultra-cheap, making it one of the best growth stocks to buy now.
There is certainly some uncertainty with its business in the near term, as many still expect a recession, and after the Canadian government’s budget proposal included a suggestion to lower the amount of interest companies like goeasy can charge to its highest risk borrowers.
Nevertheless, the stock continues to remain profitable and continues to have impressive growth potential, making the current price a significant buying opportunity.
With goeasy trading just over $90 a share, it not only trades at a forward price-to-earnings ratio of just 6.5 times today. Plus, its dividend yield is also above 4.1%.
Therefore, while this top-notch Canadian growth stock trades undervalued, it’s certainly one of the best investments you can buy now before the next bull market.
A top healthcare tech stock trading undervalued
In addition to goeasy, another high-quality growth stock you’ll want to buy now before it gets any more expensive is WELL Health Technologies (TSX:WELL).
WELL has been another top performer like goeasy. It’s constantly exceeding expectations and restating its guidance higher, plus for years now, it’s been trading undervalued.
That’s all started to change in recent months. For example, since the start of 2023, WELL’s stock has already rallied by more than 100%. However, even with this exceptional rally, WELL still trades at a compelling valuation; plus, it has years of growth potential ahead of it.
The stock has a well-diversified portfolio of healthcare businesses. It’s the largest owner-operator of outpatient clinics in Canada; plus, it has several telehealth apps and digital health businesses in its portfolio and has shown it can constantly make value accretive acquisitions.
Furthermore, many of the acquisitions it has made have plenty of organic growth potential, which is why WELL is one of the top growth stocks to buy now and hold forever.
With all its potential, though, and the fact that it’s still cheap, you won’t want to wait too long before you buy WELL.
At the start of the year, it had a forward price-to-sales ratio of just 1.05 times, and while that has increased to more than two times, it’s still well below its three-year average of 5.3 times.
Therefore, while this high-potential growth stock is significantly undervalued by the market, it’s certainly one of the best stocks to buy now before the next bull market.
