The market selloff is almost a thing of the past. After the S&P 500 tumbled hard in July and then fell sharply again two weeks ago, it looked as though the bull market was ending. However, better inflation and consumer data, coupled with a tick higher in unemployment, has many convinced the Federal Reserve will cut interest rates very soon.

The benchmark index has regained almost all of the ground lost to the selloff and sits just 1% below its all-time high. That makes it more difficult to find reasonably valued stocks to invest in. But difficult does not mean impossible.

There are still plenty of growth stocks the market has left behind. Despite offering solid fundamentals and good, long-term growth prospects, they are still cheap. It is likely a situation that won’t last too long. Buying them at these discounted prices now means you will maximize your returns later on when the market finally catches on.

The following two cheap growth stocks should be on your radar and are worth diving into.

Key Points About This Article:

• The stock market bounced back after a selloff and stock valuations remain elevated.
• The two cheap growth stocks below offer investors an excellent entry point and are worth looking at more closely.
• If you want to pick up some of the most high upside stocks in the market “on sale,” check out our brand-new “The Next NVIDIA” report that lays out the next megatrends in AI and the companies we’re confident can dominate them.

ACM Research (ACMR)

Advanced equipment supplier to the semiconductor industry ACM Research (NASDAQ:ACMR) sold off with the rest of the tech sector but has been falling since March. The wafer cleaning and packaging stock began tumbling after the market dumped artificial intelligence-related stocks when it seemed as though a slowdown in the space was developing. 

Although that never materialized, ACM continued going lower after it announced a shelf offering to sell more stock. Investors didn’t like the dilution it suggested and started taking profits. It ultimately lost half its value until it reported earnings earlier this month when it trounced Wall Street’s expectations. It generated $0.55 per share in earnings on $202.5 million in revenue, well ahead of analyst expectations for $0.30 in profits and $163 million in sales.

Despite ACMR stock rocketing 31% higher over the past two weeks it remains deeply discounted. Shares trade for just 16 times trailing earnings, 11 times estimates, and go for less than twice sales. Wall Street still expects earnings to expand 46% annually for the next five years making ACM Research a cheap growth stock ripe for the picking.

QXO (QXO)

Despite being new to the market, QXO (NASDAQ:QXO) is another growth stock poised for a price rerate. The building products distribution company is headed by serial dealmaker Bradley Jacobs who late last year invested $1 billion in SilverSun Technologies and rebranded it as QXO.

Jacobs identified the highly fragmented $800 billion building products distribution market as one ripe for consolidation, which is his specialty. He turned United Rentals (NYSE:URI) from a small equipment rental company into the industry leader by buying up smaller rental businesses. Jacobs repeated the feat with United Waste Systems, which he eventually sold to trash-hauling giant Waste Management (NYSE:WM) for $2.5 billion.

Rolling up industries under one umbrella is Jacobs signature move. He also created logistics industry giant XPO (NYSE:XPO) from Express-1 Expedited Solutions and recently spun off trucking company GXO (NYSE:GXO) and logistics shop RXO (NYSE:RXO).

QXO stock has lost 95% of its value since June. Don’t be alarmed. It was a thinly traded stock before Jacobs got involved and he has since raised $3.5 billion in equity by selling shares in a private placement and another $620 million with a second PIPE deal. As with ACM Research, the market sold off shares on the developments.

The maneuvers give QXO a huge war chest to fund sizable, transformative acquisitions. An Oppenheimer research note says QXO is eying around 40 companies that generate approximately $300 billion in aggregate annual revenue. Ultimately, the distributor is looking for $50 billion in annual sales.

The harshly discounted stock is as cheap as it’s going to get. And with someone at the helm who has the Midas Touch for creating gold, QXO is a growth stock to buy now.

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