2 Growth Stock Bargains to Buy After the Market Correction

Buy Jamieson Wellness (TSX:JWEL) and another top cheap growth stock while they’re down and out.

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With broader markets climbing back after an early-August dip, Canadian investors may wish to punch their tickets before stocks can roar back to new highs. Indeed, just two weeks ago, it seemed like stocks were headed for a nasty bear market moment or even a crash as recession fears came to light. It’s never a good feeling to be invested during a market selloff. That said, sometimes you just have to hold your nose and buy something after the S&P 500 sheds north of 8% of its value.

With stocks roaring back in the past week, the scary market selloff now looks to be nothing more than just another run-of-the-mill stock market correction, one that’s to be expected every now and then. With so many unforeseen events coming in simultaneously, it should be no surprise to see stocks take a bit of a dip in the heat of the summer.

After all, it’s been a long time since we’ve had such a correction, and while some of the more bearish folks out there (think Dan Niles) believe the bottom isn’t in quite yet (we still have September to get through), I still think it makes sense to at least start doing a tiny bit of buying.

In this piece, we’ll check in with two intriguing growth stocks that I still view as a pretty good deal as stocks move on from the summertime correction.

Jamieson Wellness

Jamieson Wellness (TSX:JWEL) is a more than 100-year-old company with a brand that’s tough to top, especially as more health-conscious consumers opt for quality over cheapness at the vitamin aisle. When it comes to your health, seldom is it a good idea to trade down to a potentially lower-quality generic alternative.

In any case, Jamieson is a trusted brand name that’s not all too expensive versus rivals. With some of the best operating economics in the business and a brand that could help power international growth, I’d not sleep on JWEL stock while it’s still down more than 27% from its all-time high hit all the way back in 2020.

At writing, shares go for 19.0 times forward price-to-earnings (P/E) ratio to go alongside a 2.71% dividend yield. If the economy picks up and rates really begin to retreat, look for Jamieson shares to make up for lost time over the next 12-18 months. Lower rates are a tremendous positive for such a mid-cap ($1.3 billion market cap) firm with a world of growth expansion opportunities.

Created with Highcharts 11.4.3Jamieson Wellness PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Alphabet

Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) shares have been punished harshly in recent sessions, thanks partly to the tech-focused nature of the latest U.S. market selloff. More recently, GOOG stock fell under pressure (down around 1% during Tuesday’s after-hours session) as the U.S. Department of Justice mulled a potential breakup of the $2 trillion firm.

I think such a breakup could unlock massive value for long-term shareholders. As such, I view the dip on the news as overblown and opening up a potential window to buy the stock at below $165 per share. Though I view an Alphabet breakup as a possible positive, I’m unsure if any such move will happen. Such massive moves take many years to play out. Further, significant hurdles must be overcome before such an event can occur.

Created with Highcharts 11.4.3Alphabet PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

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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.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Alphabet. The Motley Fool has a disclosure policy.

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