Did you know the growth-stock-laden Nasdaq Composite index collapsed 33.9% in 2022?

With the recent turmoil still fresh in the minds of many investors, even the best growth stocks aren't getting as much attention as they deserve. As a result, you can buy shares of terrific businesses at more attractive valuations than we could have dreamed of a year ago.

The Nasdaq bear market we've been living through for more than a year now knocked these two stocks down to prices that are hard to ignore. Let's look at their underlying businesses to see why they could make excellent additions to most growth stock investors' portfolios.

1. DigitalOcean

DigitalOcean (DOCN -1.52%) was one of many work-from-home tech stocks that surged during the lockdown period of the pandemic. Unfortunately, it's fallen around 73% from its former peak.

Now, you can buy DigitalOcean for just 21.3 times the midpoint of management's adjusted earnings estimate for 2023. This is a bargain price for a company that just grew annual revenue by 34% year over year. 

DigitalOcean offers a simplified approach to cloud computing for individual developers and small to-medium-sized businesses (SMBs). According to IDC, individuals and companies with less than 500 employees will spend a combined $98 billion on the sort of platform-as-a-service and infrastructure-as-a-service products that the company specializes in.

Its popularity is growing fast because the platform allows smaller teams to build and deploy new applications for next to nothing up front. This is a big attraction for independent developers who don't have enterprise-level access to larger platforms from Amazon, Microsoft, or Alphabet.

DigitalOcean aims for the less-capitalized portion of the cloud computing market, but that doesn't mean it can't become strongly profitable. Fourth-quarter free cash flow more than tripled year over year to $77.8 million. That's 13.5% of top-line revenue during the period, and the company is aiming for a 20% free cash flow margin. A recent restructuring plan that will trim its workforce by around 11% could help it reach the ambitious goal.

2. ShockWave Medical

Shares of ShockWave Medical (SWAV 0.45%) are down about 38% from the peak they reached last summer. Now you can pick up shares of the specialized medical device maker at the very reasonable price of just 31.8 times the amount it earned last year.

ShockWave's price-to-earnings multiple implies significant earnings growth ahead, but not nearly as much as the company appears capable of delivering. In 2022, total revenue more than doubled year over year to reach $489 million. Operating expenses grew just 53% over the same period.

ShockWave develops and markets the only intravascular lithotripsy (IVL) devices approved by the FDA to help open blocked arteries. The company's main growth driver at the moment is a narrow catheter that uses sonic pressure waves to soften calcified coronary arteries.

ShockWave isn't limiting itself to its IVL devices. Earlier this year, the company agreed to acquire Neovasc for around $100 million in cash. Neovasc's lead product is a device for treating chronic chest pain that is already approved for sale in the EU. A pivotal trial intended to support U.S. approval is ongoing.

During clinical trials leading to its approval, ShockWave's coronary device made the process of stretching out arteries with an angioplasty balloon to insert a stent significantly more likely to succeed without life-threatening complications. As the only company with approved IVL devices to sell, investors can reasonably look forward to many more years of rapid growth. Buying the stock now and holding on for the long run looks like the right move to make.