2 Canadian Growth Stocks You'll Regret Not Buying on the Dip (2024)

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If you’re looking for top growth stocks to take advantage of the market selloff and buy on the dip, here are two of the very best.

When the entire market is selling off, there are tonnes of different stocks trading cheaply and plenty of opportunities for investors. But while there may be a lot of choices, these opportunities don’t happen often. So, it’s crucial to focus on finding the best Canadian stocks possible to buy on the dip.

If you can find a high-quality stock to own for the long haul, not only should it outperform the rest of the market, but when you buy it cheap, the return potential is even more significant.

If you’re looking to find the best Canadian growth stocks to buy on the dip today, here are two to consider.

One of the best Canadian stocks to buy on the dip

One of the best Canadian stocks in recent years, and now one of the best to buy on the dip, is Shopify (TSX:SHOP)(NYSE:SHOP), the massive e-commerce giant.

Shopify’s growth has slowed in recent months, and its short-term growth strategy has shifted slightly. However, the biggest reason for the stock’s selloff has been due to the investing environment and is not necessarily performance related.

Therefore, with the stock trading ultra-cheap, it’s one you’ll want to strongly consider. At roughly $450 a share, Shopify trades at a forward price-to-sales ratio of roughly 7.9 times. That’s the lowest it’s traded in over five years. Furthermore, it’s well below Shopify’s five-year average of 23.7 times.

As growth slows, it makes sense that Shopify’s valuation comes down. However, an average of nearly 24 over the last five years to eight times today is a significant fall.

So, you may decide that it’s still too early to buy Shopify and that it may continue to fall in this uncertain investing environment. However, at this price, if you believe in Shopify’s ability to execute and continue to grow, then it’s certainly one of the best stocks to buy on the dip.

A top defensive growth stock to buy now

Another high-quality Canadian stock that has pulled back recently and is now nearly 20% off its high is Jamieson Wellness (TSX:JWEL). A 20% discount in Jamieson’s stock price may not seem like a massive discount, but considering it’s highly defensive and incredibly resilient, the growth stock is one of the best companies to own in this environment.

So, while Jamieson, one of the best long-term growth stocks in Canada, trades undervalued, it’s one of the best to buy on the dip.

To get an idea of how resilient Jamieson is as well as what a high-quality growth stock that company is, just look at the stock’s financials. Every year since it went public in 2017, it has grown its sales, including through the pandemic. In addition, the stock’s earnings have also grown each year, which is truly impressive and shows why it’s such a reliable growth stock.

Now, after its recent selloff, the health and wellness company is trading at a forward enterprise value-to-EBITDA ratio of roughly 13.5 times. That’s not just the cheapest it’s been since August of 2019. It’s also well below the average of 15.7 times that Jamieson has traded at since going public.

If you’re looking for the best Canadian stocks to buy on the dip, Jamieson is one that offers a tonne of long-term potential in addition to being highly reliable in the current environment.