3 Top Canadian Stocks That Just Went on Sale

If you’re looking to buy some top Canadian stocks today, these are three of the best long-term investment. Each one offers an attractive discount.

| More on:
edit Sale sign, value, discount

Image source: Getty Images

When high-quality Canadian stocks go on sale, it’s crucial to take advantage as soon as possible. As long as the underlying reason for the stocks’ current downtrend is something it can overcome, and it’s still an excellent investment long-term, then these are some of the best opportunities to buy stocks.

You don’t want to wait too long to take advantage, either. Generally, the higher the quality of stock, the less time it will spend trading cheap.

So if you’re looking to buy some top Canadian stocks today, here are three that just went on sale.

A top Canadian utility stock

One of the top Canadian stocks for long-term investors to buy today is Algonquin Power and Utilities (TSX:AQN)(NYSE:AQN). And recently, the stock has gone on sale, making now an excellent time to take a position.

Algonquin is a utility stock that offers gas, water, and electricity services to its customers. However, the company is also a significant renewable energy generator, with green energy making up about a third of its business.

So while Algonquin is a stock that can offer investors a tonne of resiliency, it’s also a stock that should have a tonne of long-term growth potential. Not only that, but it also offers an attractive dividend that currently yields 4.4%.

And with volatility starting to pick back up in markets lately, Algonquin might just be the ideal stock to buy for this environment.

The Canadian utility stock ended the trading week last week at $19.53, nearly 15% off its 52-week high.

So if you’re looking for a top Canadian stock to buy undervalued today, Algonquin is one of the best to consider.

A top Canadian restaurant company

Another high-quality Canadian stock to consider buying at a discount today is Recipe Unlimited (TSX:RECP). Recipe Unlimited is the oldest and largest full-service restaurant company in Canada.

The company owns numerous ultra-popular restaurant brands such as Swiss Chalet, Harvey’s, The Keg, and several more. This is a business that’s understandably been impacted by the pandemic.

However, it’s also one with the potential to recover significantly over the coming years as these are some of the top restaurant brands in Canada and have proven for years to be consumer favourites.

The top Canadian stock closed Friday’s trading day at $19.20, nearly 20% off its 52-week high. Plus, even at its current impacted levels, it trades at a price-to-earnings ratio of just 18 times.

So as the company continues to recover, the value will only grow from here for Recipe. Therefore, if you’re looking for a top Canadian stock that you can buy on sale today, it’s certainly a company worth considering.

A high-growth gold stock

Last but not least is one of the top growth stocks for the gold industry, Equinox Gold (TSX:EQX). While many gold stocks are cheap and are an excellent investment idea in this market environment, I think Equinox offers some of the best potential because, in addition to being undervalued, it has a tonne of long-term growth potential.

Equinox has been rapidly expanding its production, both through organic growth as well as attractive valuations its made. The company only commenced production less than five years ago and is already on its way to being an intermediate producer, so there is a tonne of upside for investors.

The top Canadian gold stock closed trading last week at $9.11 a share. Plus, on top of the stock being down nearly 50% from its 52-week high, it’s also considerably lower than its consensus analyst target price.

Currently, Equinox’s target price from the eight analysts covering it is more than $13.75, a 50% premium from Friday’s closing price.

So if you’re looking to buy a top growth stock that’s trading cheap, or you want exposure to gold as the market environment becomes more volatile, then Equinox Gold is a stock I suggest you check out.

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 Daniel Da Costa owns shares of ALGONQUIN POWER AND UTILITIES CORP. The Motley Fool has no position in any of the stocks mentioned.

More on Stocks for Beginners

stock market
Stocks for Beginners

A Bull Market Is Eventually Coming: 1 Stock to Buy Now and Hold Forever

Investors may be uncomfortable in market downturns, but try to stay the course and focus on the long term to…

Read more »

Dividend Stocks

5 Steps to Making $500 in Monthly Passive Income in 2023

Generating monthly passive income isn't as hard as it sounds. Here are 5 steps to start making $500 every month.

Read more »

Various Canadian dollars in gray pants pocket
Stocks for Beginners

3 Passive-Income Ideas to Build Long-Term Wealth

Set up to earn multiple passive-income streams to complement your active income. Dividend stocks are an excellent way to start.

Read more »

woman data analyze
Stocks for Beginners

Got $1,000? 3 Places to Invest for March 2023

New investors should regularly save and invest according to their risk tolerance and financial goals. Here are three places to…

Read more »

Young adult woman walking up the stairs with sun sport background
Stocks for Beginners

Debt-Riddled Canadians: 4 Steps to Manage Your Finances and Grow Your Portfolio

There are so many Canadians drowning in debt. Follow these steps, and you could get out of it before you…

Read more »

Man holding magnifying glass over a document
Stocks for Beginners

TFSA Investors: Make Your Recession Watchlist Now!

These long-term stocks offer immense value for TFSA investors looking to create immense returns coming out of a recession.

Read more »

tsx today
Stocks for Beginners

TSX Today: What to Watch for in Stocks on Thursday, March 23

TSX stocks may remain volatile, as investors continue to assess how the high interest rate environment could affect the economy…

Read more »

A plant grows from coins.
Dividend Stocks

2 Young TSX Stocks You’ll Be Glad You Bought in 10 Years

Youth means nothing when you plan to hold strong companies long term. These two TSX stocks should therefore be first…

Read more »