The S&P/TSX Composite Index continues to climb past all-time highs with earnings up and inflation on the rise. Companies continue to see strong reports with vaccination rates up, restrictions down, and a holiday season upon us. However, there are some stocks on the TSX today that are actually down — by quite a lot.
While these stocks might not seem like a great buy right now, I’d argue it’s the perfect time to buy them. These companies are strong investments for Motley Fool investors seeking long-term returns and income. If that’s the case, I’d consider these two for your long-term portfolio.
Lightspeed stock: Down 27%
Shares of Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) all but collapsed during the last two months. First there was the short-seller report from Spruce Point Capital, declaring the acquisitions made by Lightspeed stock were merely “smoke and mirrors.” Then the company reported poor earnings that investors weren’t happy about.
Earnings still beat estimates, but it looks like investors were expecting more. This is likely due to the many acquisitions made by Lightspeed stock in the last two years. Revenue reached US$133.2 million, almost triple the year before, with strong organic growth from acquisitions.
However, Lightspeed also saw its net loss more than double, with its adjusted loss at US$0.08 per share. Lightspeed stock chalked this up to both merchant and its own supply chain issues, along with the pandemic.
That all being said, it seems these are short-term issues for Motley Fool investors. Lightspeed stock may have just offered a huge discount for long-term holders worried they missed the boat. In fact, management increased its full-year outlook to between US$520 and US$535 million! So, if the good news continues, you could see your shares soar in the near future and beyond.
Shares in Lightspeed stock are down 27% in the last month and up 3% year to date.
Goodfood stock: Down 22%
Shares of Goodfood (TSX:FOOD) also fell during the last month, similar to Lightspeed stock. Though the company actually saw less investment thanks to the easing of pandemic restrictions. With restrictions no longer such a problem, and vaccination rates up, investors worry that Goodfood stock cannot keep up the pace.
This comes after a record-setting quarter during the summer. But now, fourth-quarter report is due any day now. And the company hasn’t made any significant announcements, as it has in the past. There are no new fulfillment centres and no new products. However, it did announce it will become the first company in Canada to deploy a fully electric refrigerated vehicle service.
While it’s not as exciting as it once was, similar to Lightspeed stock, it certainly is more stable. Further, it has more growth to go. Goodfood stock remains the meal-kit service with the highest market share in the sector in Canada. Its market cap is at $527 million at writing, compared to double that for other meal kit services. So, this stock on the TSX today might be a prime investment ahead of earnings.
Goodfood stock is down 22% in the last month and 46% year to date.