Growth stocks have been buried in the recent decline. It’s no secret, particularly as the major indices have slid into a correction of 20% or more. However, the problem is that many of the high-quality companies are getting sucked in with the low-quality companies and the selloff has created a lot of cheap growth stocks. Therein lies another problem, though: Cheap stocks can always get cheaper — especially in a bear market.
Now that’s got investors in a tough spot. Do they buy while these stocks are down anywhere from 60% to 80% or more?
As long as the businesses have not deteriorated as fast as the stock price has, the valuation usually becomes more palpable. That being said, it’s hard to ignore the trend of the market, particularly in growth stocks.
Aggressive bulls can look for buying opportunities, while conservative bulls can build their go-lists to buy these cheap growth stocks when the market eventually returns to a more favorable state.
Let’s look at a handful of cheap growth stocks.
This post originally appeared at InvestorPlace.