3 Top Growth Stocks to Buy on the Dip

Canadians should look to snatch up dipping growth stocks like goeasy Ltd. (TSX:GSY) in the middle of this market correction.

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The S&P/TSX Composite Index was down 71 points in early afternoon trading on July 13. Canadian stocks were thrust into a bear market in the previous month. Equities have encountered major turbulence in the face of surging inflation, rapidly rising interest rates, and the rising risk of a recession. Today, I want to look at three growth stocks that are worth snatching up on the dip in this correction. Let’s jump in.

Here’s a growth stock you can snatch up for cheap in the middle of July

goeasy (TSX:GSY) is a Mississauga-based company that provides non-prime lending and services to consumers in Canada. Shares of this growth stock have plunged 44% so far in 2022. The stock has more than halved in value since hitting an all-time high of $218.35 per share in September 2021. Investors should remember the rebound goeasy staged after the 2020 market pullback. At one point, it fell below the $30/share mark. It is now valued at just under $100/share even after a sharp correction.

Investors can expect to see its second-quarter 2022 earnings in early August. In Q1 2022, it delivered loan originations growth of 75% to $477 million. Meanwhile, it posted loan growth of 307% to $124 million. goeasy reported same-store revenue growth of 14% and saw its total customers rise above 1.1 million.

This growth stock currently possesses a favourable price-to-earnings (P/E) ratio of 10. It offers a quarterly dividend of $0.91 per share. That represents a 3.7% yield.

Don’t sleep on this struggling tech stock in the summer

Kinaxis (TSX:KXS) managed to perform well during the 2020 market pullback before succumbing to broader pressure. Supply chain software management services have seen increased demand as the COVID-19 pandemic has caused severe disruptions. Those wounds have lingered over the past year. Shares of Kinaxis have declined 18% in 2022. That has pushed this growth stock into negative territory in the year-over-year period.

The company reported first-quarter 2022 results on May 5. Total revenue increased 70% year over year to $98.1 million. Gross profit jumped 87% to $69.6 million. On the business front, Kinaxis has continued to achieve big customer wins. Adjusted EBITDA soared 267% to $33.1 million.

Shares of this growth stock are trading in attractive value territory compared to its top competitors. Moreover, it is geared up for promising earnings growth in a niche market. I’m still looking to snatch up Kinaxis on the dip today.

One more growth stock to snag for the long haul

ATS Automation (TSX:ATA) is the third growth stock that I’d suggest snagging in this bear market. This Cambridge-based company provides automation solutions to a worldwide client base. Its shares have plunged 28% so far in 2022. That has pushed the stock into the red in the year-over-year period.

Investors got to see its fourth-quarter and full-year 2022 results on May 19. It delivered revenue growth of 50% to $603 million. Meanwhile, adjusted basic earnings per share nearly doubled in the year-over-year period to $0.64. This growth stock offers a solid P/E ratio of 27.

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.

Fool contributor Ambrose O'Callaghan has positions in KINAXIS INC and goeasy Ltd. The Motley Fool recommends KINAXIS INC.

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