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These 2 ASX growth stocks could offer great value after recent declines

Recent declines can present an opportunity to buy some growth shares at great value.

One of the best ways to beat the market is to invest differently (but also successfully) compared to most other investors.

Going after shares that are temporarily out of favour could be a good strategy for investors. That’s why these two shares at the current prices could be opportunities:

Costa Group Holdings Ltd (ASX: CGC) 

Costa has dropped the most over the past year out of all of the shares within the ASX 200 (ASX: XJO), it’s down 44% over the past year and 66% since its all-time high in June 2018.

Australia’s largest horticultural business has had a really tough time over the past 18 months with drought and produce-specific problems.

The thing is, logic would say that these drought conditions will break at some point as they normally do. That could mean that today’s low share price and earnings could be the low point in the cycle.

Costa is trying to expand in Australia, North Africa and China – it has a lot of growth potential and hopefully the worst is over for the company and regional Australia as a whole.

It’s trading at 20x FY20’s estimated earnings – but it’s hard to say if that estimate will be accurate for this year.  

Bapcor Ltd (ASX: BAP) 

Bapcor has seen its share price fall by 15% since mid-November, which isn’t a great result considering the share market is reaching all-time highs.

Investors are worried in the short-term about the general struggle of everything related to cars and retail as a whole. Despite those issues, Bapcor was still able to grow its net profit at a nice pace in FY19 and it’s expecting another year of growth in FY20.

The attractive thing about Bapcor is that it’s expanding in several ways. It’s growing its same store sales at Burson at a nice pace, it’s growing its store networks in Australia & New Zealand, it’s expanding into truck parts and it’s just started opening Bursons in Asia.

Bapcor is valued at just 15x FY21’s estimated earnings.

Foolish takeaway

Over the long-term I think Costa could be the best performer from this share price, but in the short-term Bapcor could be the better performer until the drought lifts. Both of them look cheap to me, particularly against the ASX 200.

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Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO. The Motley Fool Australia owns shares of and has recommended Bapcor and COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.