3 TSX Stocks to Buy on the Dip Right Now

Shares of these Canadian companies have lost more than 10% in value and are solid long-term bets.

| More on:

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Top TSX stocks witnessed strong buying in the past year. While growing digital adoption drove Canadian tech stocks higher, a better-than-expected economic recovery, rising consumer demand, and expected revival in corporate earnings can be attributed to most sectors’ growth. 

However, valuation concerns, expected normalization in growth rate, and profit booking has led to a healthy correction in some of the top stocks listed on the TSX. I believe the dip in these stocks provides an excellent buying opportunity for investors with a long-term outlook. Let’s look at the shares of three such Canadian companies that have lost more than 10% in value and are solid long-term bets.

Goodfood Market 

Goodfood Market (TSX:FOOD) is a solid high-growth long-term stock. Notably, shares of the online grocery provider appreciated about 315% since it was listed on the TSX in June 2017 and has significantly outperformed the benchmark index. 

However, Goodfood Market stock has dropped about 19.2% this year, as warm weather and the reopening of retail locations led to a slowdown in its active subscriber growth rate. While I expect a portion of the consumer spending to roll back to the physical retail stores, the demand for online grocery services could remain elevated, even in the post-pandemic phase. Thus, I see the dip in Goodfood Market stock as a solid opportunity to buy this high-growth company on the dip.

I believe secular industry tailwinds focus on reducing delivery time, and the expansion of its online offerings could continue to drive subscriber growth and order frequency. Moreover, Goodfood Market’s dominant competitive positioning, increased investments in automation, growing scale, and network optimization could further accelerate its growth rate.


Like Goodfood Market, Cargojet (TSX:CJT) has made its investors rich and delivered massive returns. Cargojet stock has appreciated over 425% in five years and over 2,418% in the past decade. The company benefitted significantly from the pandemic, as it accelerated the demand for its services. However, Cargojet stock has reversed some of its gains and has dipped about 18.8% this year, presenting investors with a good buying opportunity. 

Looking ahead, I expect the company to continue to deliver stellar financials, led by sustained momentum in its core business. Furthermore, higher e-commerce demand, high client-retention rate, and long-term contracts provide increased visibility over future cash flows. Cargojet’s next-day delivery capabilities, cost optimization, and international growth opportunities augur well for future growth and position it well to deliver solid financial performance. 


Shares of the corporate e-learning platform provider Docebo (TSX:DCBO)(NASDAQ:DCBO) have gained over 361% since its IPO in October 2019. However, the economic reopening and profit booking after its stellar run led to a more than 10% decline in its stock this year. 

Supporting my bullish outlook is the stellar growth in Docebo’s annual recurring revenues. I expect the momentum in its recurring revenues to sustain, reflecting continued growth in active customers and strength in OEM sales. The company’s average contract value is also growing at a healthy pace, which is encouraging. 

Overall, its solid recurring revenues, large addressable market, and ongoing investments in sales and marketing are likely to support its financials. Also, customer expansion activity, higher retention rate, productivity savings, and improving efficiency are likely to push Docebo stock higher. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CARGOJET INC. and Docebo Inc. The Motley Fool recommends Goodfood Market Corp.

More on Tech Stocks

Automated vehicles
Tech Stocks

Want to Be a Millionaire? This 1 Canadian Stock Could Soon See a Blistering Rally

If you can take the risk of buying falling shares of some companies with a solid growth outlook, they could…

Read more »

Money growing in soil , Business success concept.
Tech Stocks

Got $1,000? Buy These 3 Top Growth Stocks

These three Canadian growth stocks could deliver superior returns over the long run.

Read more »

Man making notes on graphs and charts
Tech Stocks

TFSA Investors: 2 U.S. Stocks I’m Never Selling

Are you looking for U.S. stocks to hold in your portfolio? Here are two stocks I’m never selling!

Read more »

grow money, wealth build
Tech Stocks

TFSA Cash: Turn Your $81.5K Into $330K by 2032

These Canadian stocks have the potential to deliver average annual returns over 15% and create significant amount of wealth for…

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

1 TSX Tech Stock to Buy Today and Forget for the Next 5 Years

This high-growth tech stock could multiply your invested money in the next five years if you buy it in time.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Tech Stocks

TFSA Investors: Got $6,000? Here’s How You Can Power Up Your Portfolio

Are you trying to find stocks to add to your TFSA? Here’s how you can power up your portfolio!

Read more »

Hand holding smart phone with online shop concept on screen
Tech Stocks

Shopify Stock or Lightspeed Stock: Should You Buy Either?

Shopify stock (TSX:SHOP)(NYSE:SHOP) and Lightspeed stock (TSX:LSPD)(NYSE:LSPD) are both up in the last month, but should you buy?

Read more »

Tech Stocks

Got $300? 2 Simple TSX Stocks to Buy Right Now

These two TSX stocks aren’t as popular as other names, but they are smart buys right now because both are…

Read more »