Anytime the stock market is selling off, it’s an excellent time to buy the best Canadian stocks. However, these opportunities don’t come around very often.
So when these market pullbacks do materialize, it’s crucial that investors are ready and take advantage of the opportunity.
That means having a list of stocks you’re interested in buying and what price you’re happy to buy at. So here are five of the best Canadian stocks I’d be looking to buy the next time the market sells off.
A stock to buy and hold long-term
Owning residential real estate is an excellent investment, and Canadian Apartment Properties REIT (TSX: CAR.UN) is one of the best stocks to buy to gain exposure.
CAPREIT owns over 65,000 sites and suites across Canada and Europe, giving it an extremely well-diversified portfolio. CAPREIT is one of the best investments you can make because not only do you get a great defensive investment, but you also get a top long-term growth stock.
Over the last five years, unitholders have seen a total return of more than 125%. So anytime you can buy this top Canadian real estate stock undervalued, it’s one of the best opportunities around.
A top tech stock
Shopify (TSX: SHOP)(NYSE:SHOP) is another great stock to own long-term. Because it’s such an incredible business in a rapidly growing industry like e-commerce, though, the stock tends to trade with a significant growth premium.
And while the stock’s performance in recent years has been impressive — and you could argue it deserves a premium — if you can buy Shopify at a discount, you can massively improve your long-term returns.
The tech stock has been selling off lately, becoming a much more attractive investment. However, it still trades at a fairly significant valuation today.
If a market correction was to materialize, though, and Shopify’s stock was falling, it would certainly offer an incredible opportunity and be one of the best Canadian stocks to buy.
The best Canadian infrastructure stock to buy
Another excellent long-term investment that you’ll want to buy as cheap as possible is Brookfield Infrastructure Partners (TSX: BIP.UN)(NYSE: BIP).
Part of the reason Brookfield is one of the best Canadian stocks to buy in a market pullback is that it’s unique. There aren’t many companies that offer exposure to a diversified portfolio of such high-quality and defensive assets around the world.
Brookfield aims to grow the value of its fund by up to 15% annually for investors, which is why it’s such an excellent business to own long-term.
However, if you could buy the stock at a significant discount during a market pullback and then be exposed to all that impressive growth, it would certainly be one of the best Canadian stocks you ever buy.
A massive telecom stock
Owning stocks in the telecommunications industry is always a prudent long-term investment, which is why Telus (TSX: T)(NYSE: TU) would be another one of the best Canadian stocks to buy in a market correction.
The massive stock offers low-risk growth for years, especially as 5G technology is just starting to roll out across the country. So buying Telus undervalued would not only set you up for years of high-quality growth potential in the stock but could also earn you a major dividend.
Even today, the stock’s dividend is attractive at 4.5%, plus Telus is a Dividend Aristocrat, so it increases its payout to investors each year.
That’s why if you can get this incredible business at a significant discount in a market pullback, it’ll be one of the best Canadian stocks you buy.
A top long-term growth stock
Last but not least is Alimentation Couche-Tard (TSX:ATD.A)(TSX:ATD.B), an incredible long-term growth stock with more than 14,000 convenience stores and gas stations all over the world.
For years Alimentation Couche-Tard has grown rapidly by acquisition, showing what an incredible business it is. And on top of all this growth, the business itself is quite defensive.
So anytime you can buy Couche-Tard at a discount, it’s one of the best Canadian stocks on the market.
During the last market pullback, Couche-Tard shares fell by over 30%. So if you could get a 30% discount on Couche-Tard shares today, that would be an extremely appealing long-term investment.
