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.

| More on:
jar with coins and plant

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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

Should you invest $1,000 in Alphabet right now?

Before you buy stock in Alphabet, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Alphabet wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Investing

Canada day banner background design of flag
Dividend Stocks

Top Canadian Stocks to Buy Right Now With $5,000

Looking for some safe, long-term stocks? These Canadian stocks are where you should look first.

Read more »

money goes up and down in balance
Investing

Where I’d Invest $5,000 in 5 Cheap Canadian Stocks for Value and Growth

$5,000 can buy five cheap Canadian stocks offering both value and price appreciation in 2025.

Read more »

cloud computing
Investing

Got $5,000 to Invest? 3 Insurance Stocks to Buy and Hold Forever

Insurance stocks have been great long-term investments. Here are three top stocks to add if the market pulls back.

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

1 Tech Stock I’d Buy With $1,000 Whenever it Dips (Further) in Price

Shopify (TSX:SHOP) is one of the names to check out should it fall below $100 per share.

Read more »

Car, EV, electric vehicle
Dividend Stocks

Outlook for Magna Stock in 2025

Magna stock has sunk into the toilet, but it could now be one of the best undervalued stocks out there.

Read more »

alcohol
Dividend Stocks

Why I’d Consider These 3 Blue-Chip Dividend Stocks for a $20,000 Lifelong Investment

In a market correction, it’s essential to focus on blue-chip stocks that offer stability and long-term growth potential.

Read more »

Canadian dollars are printed
Dividend Stocks

Transform Your TFSA Into a Cash-Creating Machine With $14,000

Investing a total of $14,000 across these three stocks could earn you more than $1,039 in tax-free income each year.

Read more »

coins jump into piggy bank
Dividend Stocks

Where I’d Invest $12,000 in Canadian Stocks for Reliable Dividends

Want reliable dividends? Here's a trio of stocks that can provide a juicy income stacked for growth, even with a…

Read more »