The Stock Market Correction: 5 Dirt Cheap Growth Stocks To Load Up On

Investors wake up to market volatility every day amid the unfriendly political environment. The President’s announcement of tariffs, recession concerns, and the ongoing earnings season have investors on edge. The S&P 500 is down 9.9% year-to-date and the Nasdaq Composite has dropped 15.46%. Several companies rely on countries worldwide for the production of parts and finished goods. The duties could bring about a massive change in the global economy and this has led to a market slowdown.

Many industry players have seen their shares plummet, making them dirt cheap for investors. If you believe the stock market will recover in the long term, here’s your rare opportunity to load up on these five growth stocks. These stocks have proved their strength in the past and have the potential to bounce back from the lows. Buying them in the dip will set you up for success.

Nvidia Corporation

Down 28% year-to-date, Nvidia (NASDAQ:NVDA) stock is trading at $98. The tech giant saw a massive rally in 2023 and announced a stock split in 2024 but this year hasn’t been kind. The biggest reason behind this drop is the tariff.

Nvidia recently announced that it will take a charge of up to $5.5 billion in the quarter due to the restriction on the export of its chips to China. The news did not sit well with investors and several Wall Street analysts also lowered their price target on the stock.

The export restriction could have a huge impact on Nvidia’s sales but the overall demand for its chips remains robust. Tech giants are planning to spend billions on AI this year and even if we eliminate Chinese revenue, Nvidia will continue to maintain its strong position. I believe the current dip is a golden opportunity to buy the stock.

Nvidia has reported steady growth and rewarded investors year after year. Once a $3 trillion conglomerate, Nvidia faces trouble and this has made the stock dirt cheap. Its P/E ratio is 34x and investors have to pay the smallest premium for this stock since 2016. NVDA is the cheapest it has been in the past few years and with high expectations for another blowout quarter, this could be a good moment to scoop the stock.

Oracle Corporation

Technology company Oracle (NYSE:ORCL) has lost 23% value year-to-date and is exchanging hands for $127. When compared with Nvidia, the stock looks expensive but it is down from the 52-week high of $198. The stock is down due to the overall market selloff but continues to remain a lucrative investment.

In the past three years, the stock managed to outperform the S&P 500 and Nasdaq Composite, proving to be an excellent investment. The tech giant is making the most of the demand for AI infrastructure and Oracle is the leading provider of data center services and operates a network of cloud data centers. The company reported impressive fundamentals for the third quarter and saw a 6% year-over-year jump in revenue and a whopping 23% jump in cloud services revenue to $6.2 billion.

The steady increase in AI demand makes Oracle a screaming buy. Additionally, it has a backlog of contracts with some of the top tech companies including Nvidia which will continue to drive revenue throughout the year. It is rapidly expanding the data center network and has seen steady revenue and income growth. If you believe in the future of AI, Oracle is a stock to own.

Nike Inc

Athletic footwear and apparel company, Nike (NYSE: NKE) has been facing mounting challenges since 2024. The stock is down 22% year-to-date and 39% in 12 months. It is nearing the 52-week low of $52 and is exchanging hands for $57 at the time of writing. The business is suffering tremendously and in the recent quarter, it saw a 9% year-over-year drop in revenue and the EPS was down 30%. The previous quarters showed similar results leading to investor disappointment. Nike stock has become dirt cheap but investing in it comes with risks.

The biggest challenge for the company is tariffs and the current environment. The tariffs could lead to lower sales amid low consumer spending. This can increase costs and impact demand. However, looking at Nike’s history, this could be a temporary dip in the long-term growth and the stock could be a solid long-term buy.

Additionally, it has a dividend yield of 2.80% which makes it attractive for passive income investors. The company has increased dividends for 24 consecutive years. Nike excels in dividend growth and is committed to rewarding shareholders. The stock will take some time to recover and investors should not expect an immediate upside.

Chevron Corporation

The oil and gas sector has seen market volatility and this has led to a drop in oil and gas stocks. Chevron (NYSE: CVX) owns an upstream and downstream business which has generated impressive cash flow over the years. The stock is down 6.4% year-to-date and 15% in 12 months. It is nearing the 52-week low of $132 and is exchanging hands for $137 today.

Chevron has a diversified business and a stable dividend which looks relatively safe. It enjoys a yield of 4.98% and has increased dividends for 37 consecutive years. The company has plenty of cash to keep rewarding shareholders and also owns tariff-resistant energy-producing assets in the U.S. which make it a safer investment choice.

In the quarterly results, the company reported earnings of $3.2 billion, an EPS of $1.84, and a 7% jump in worldwide production. Chevron generates the majority of its revenue from the Permian Basin and it is aiming to increase the production by 6% to 8% in 2025. With new sites coming up in the Gulf of Mexico and Kazakhstan, Chevron is in a stable position to keep growing. Buying the stock in the dip is a smart move.

Bank of America

Bank of America (NYSE: BAC) is a rock-solid business to own during uncertain times. Trading for $38, the stock is down 13.48% year-to-date and almost flat in 12 months. It is near the 52-week low of $33, which is the lowest it has traded in a year, making it an excellent buying opportunity.

The bank has been standing strong amid volatility and the first quarter results showed a 6% jump in revenue and an 18% rise in the EPS. All the business segments managed to generate growth, giving it solid momentum. If the Fed continues to lower interest rates this year, Bank of America could see an improved net interest margin. It saw a 4% year-over-year jump in the payment volume and a drop in credit card delinquencies. The picture looks attractive and BAC is a dividend stock with a yield of 2.71%.

The bank stock is set to see an upside once the U.S.-China tensions ease. The strong fundamentals have impressed investors and the market has responded positively. Buying BAC stock below $40 is a smart move. The bank will be able to navigate through a tough economy and analysts expect an upside from the current level.

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