Although some parts of the market have slightly recovered in 2023 from their 2022 declines, many stocks are still well off their highs, and trading at cheap valuation levels. That positions them potentially for rapid recoveries when the market kicks back into growth mode.

Two stocks that I think have strong recovery potential right now are Amazon (NASDAQ: AMZN) and MercadoLibre (NASDAQ: MELI). Both are trading at low valuations relative to their historical levels, and so these two e-commerce powerhouses could be an explosive combination for your portfolio.

Stock valuations are derived by measuring a company's stock price against some financial metric -- sales, free cash flow, or earnings per share, for example. Let's consider Amazon. Because the company wasn't profitable in 2022, we'll use its price-to-sales ratio to assess its valuation.

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Source Fool.com