2 Growth Stocks to Buy on the Dip if the Market Crashes Again

As markets face periodic corrections, savvy investors look to deploy capital in undervalued growth stocks poised to rebound. The Q2 2025 outlook reveals two compelling picks: D-Wave Quantum (QBTS) and Rocket Lab (RKLB). Both operate in high-potential sectors—quantum computing and space exploration—where secular trends could amplify returns. Here’s why they’re buys on a dip, along with the risks to consider.

1. D-Wave Quantum (QBTS): Quantum Computing’s Early Leader

QBTS has dropped 24% year-to-date (YTD), trading at a $1.76 billion market cap despite operating in a sector projected to hit $850 billion by 2040. The company’s edge? It’s a first-mover in quantum annealing systems, a niche technology used for optimization problems in logistics, finance, and materials science.

Why Buy the Dip?

• Proven Technology: Unlike rivals focused on theoretical advancements, D-Wave offers commercially deployed solutions for clients like Volkswagen and Los Alamos National Lab.
• Valuation Discount: At a forward P/E of ~12.5 (per Morningstar), it trades at a deep discount to its growth trajectory.
• Moat Potential: Quantum computing’s complexity creates high barriers to entry, and D-Wave’s early partnerships could solidify its leadership.

Risks

• Revenue Volatility: QBTS’s top line relies on enterprise contracts, which can be lumpy.
• Competitor Pressure: Companies like IBM and Google are closing the gap in quantum R&D.

Action: Use dips below $2.50 (as of April 2025) to initiate a 2–3% portfolio position, scaling into further weakness.

2. Rocket Lab (RKLB): Dominating the Small-Satellite Launch Market

RKLB has fallen 22% YTD, valuing it at $8.5 billion. Yet its 224 successful satellite deployments and upcoming Neutron rocket (designed for human spaceflight) position it to capitalize on a $1 trillion space economy by 2040 (Morgan Stanley).

Why Buy the Dip?

• Market Leadership: Rocket Lab is the second-largest U.S. launch provider behind SpaceX, with a focus on small-satellite missions—a niche growing at 15% annually.
• Cash Flow Strength: Generated $500 million in free cash flow in 2024, with a strategy to return 50% to shareholders via dividends and buybacks.
• Scalability: The Neutron rocket expands its addressable market, from satellites to deep-space exploration.

Risks

• Regulatory Hurdles: Space launches face scrutiny over safety and environmental impact.
• Competition: SpaceX’s cheaper rideshares could pressure pricing in commoditized markets.

Action: Accumulate shares below $20 (as of April 2025), aiming for a 3–5% portfolio allocation as the space economy matures.

Conclusion: Patient Capital for Long-Term Winners

Both QBTS and RKLB exemplify growth at a discount, combining undervalued metrics with secular tailwinds. D-Wave’s quantum moat and Rocket Lab’s space dominance align with trends that will define the next decade:

• Quantum Computing: A $850B market by 2040, with D-Wave’s early mover advantage.
• Space Economy: A $1T industry by 2040, where Rocket Lab’s launch expertise secures recurring revenue.

While near-term risks like macroeconomic slowdowns or sector-specific volatility exist, these stocks are buy candidates on dips. Investors should prioritize diversification—pairing these picks with wide-moat tech leaders like Nvidia (NVDA) or Microsoft (MSFT)—to balance risk.

As markets reset, remember: the best opportunities are born in fear. These two stocks could reward patience.

Data as of Q2 2025. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.