The Canadian stock market managed to maintain its strong momentum since recovering from the pandemic frenzy-induced sell-off in February and March 2020, and for most of 2021, it seemed like it would go nowhere but up. However, the S&P/TSX Composite Index is down by 751 points at writing since its last all-time high on September 3, 2021.
Before the market correction, it might have been more challenging for investors to find high-quality growth stocks trading for lower than their intrinsic values. In a relatively bearish market environment, the search for undervalued stocks that can offer stellar long-term shareholder returns might be slightly easier.
Today, I will discuss two of the best stocks trading for $10 and under you should have on your radar right now.
Goodfood Market
Goodfood Market (TSX:FOOD) stock is an excellent cheap stock that you should consider investing in right now. After a stellar bull run on the stock market, the high-growth stock has corrected by 23% year to date after its growth rate normalized. Despite the immediate impact of physical retail stores reopening on its growth rate, Goodfood stock could provide you with significant upside potential.
Online grocery shopping has become massively popular during the pandemic, and Goodfood effectively dominates the domestic online grocery space. While the reopening of physical retail stores might take a hit on its growth rate, the demand for its services could increase in the long run. Trading for $8.86 per share at writing, the $662 million market capitalization stock could be a steal for value-seeking investors.
WELL Health Technologies
WELL Health Technologies (TSX:WELL) stock has generated stellar shareholder returns in the past, owing largely due to the increasing demand for telehealth services during the pandemic. While the hopes of moving into a post-pandemic era might make it seem that the telehealth space will lose its importance, I think the uptrend will continue for the industry and WELL Health Technologies.
The company’s strategic acquisitions and high demand for its services have allowed it to boost its revenues and cash flows. WELL Health Technologies is expanding into the U.S. and continuing its momentum in the domestic market. Combined with cost-control measures and favourable industry trends, the stock could provide you with stellar shareholder returns.
Trading for $7.08 per share at writing, WELL Health Technologies stock could be a steal for value investors right now.
Foolish takeaway
Finding high-growth stocks trading for attractive valuations is a blessing for value investors who are not afraid to take on a little capital risk for the possibility of substantial long-term gains. Goodfood Market stock and WELL Health Technologies stock are two assets that I believe have strong growth potential and are attractively priced investments at writing.
I would suggest keeping a close eye on the two stocks during the current downturn. If you are planning to invest in the stocks, ensure you don’t wait too long and miss the upward run if and when it arrives.
