Don’t let the market’s high price stop you from investing today. The S&P/TSX Composite Index is up 20% in 2021 and trading at all-time highs. Even so, there are plenty of high-quality TSX stocks trading at opportunistic discounts right now.
I’ve put together a basket of three top TSX stocks that I have on my watch list this month. They’re not the cheapest companies on the TSX, but they are all trading below all-time highs. And considering the growth they have all put up in recent years, it’s no surprise that they are trading at premiums.
Valuations may be high, but that doesn’t necessarily mean share prices are too. Canadian investors can own this entire basket of TSX stocks for less than $300 today.
Image source: Getty Images
TSX stock #1: Descartes Systems
Descartes Systems (TSX: DSG)(NASDAQ: DSGX) landed on my watch list from all the recent talk surrounding supply chain management. With many companies across the globe currently struggling with supply chain issues, the importance of Descartes Systems’s products and services is only increasing.
The tech company provides all kinds of cloud-based solutions for supply chain business operations. Enhancing productivity and improving security are the core of what Descartes Systems offers its customers.
The TSX stock owns an impressive market-beating track record. Shares are up a market-beating 275% over the past five years and more than 1,000% since late 2011. And with the increase in demand for supply chain management solutions, I’m betting that there will be many more years of market-beating growth for Descartes Systems.
At a forward price-to-earnings ratio over 50, this is not a cheap stock from a valuation perspective. But if you’re looking for market-beating growth at an affordable share price, Descartes Systems is a solid buy today. The stock is currently trading at just about $100 a share.
TSX stock #2: goeasy
goeasy (TSX: GSY) may be one of the best-kept secrets on the TSX. Shares are up nearly 100% this year and have quietly grown close to 700% over the past five years. Still, I’d be surprised if many Canadian investors are familiar with this $3 billion company.
goeasy is a consumer-facing financial services provider. It supports Canadians with all kinds of different loans, with home and auto being two of the company’s primary product lines.
I’ve got goeasy on my radar this month, because I don’t think the stock’s gains will be slowing down anytime soon. With a potential increase in discretionary spending following this pandemic, goeasy could potentially see a surge in demand for its services in the coming year.
TSX stock #3: WELL Health Technologies
WELL Health Technologies (TSX: WELL) was one of the hottest TSX stocks in 2020. Along with many other telemedicine providers, shares of WELL Health exploded early on in the pandemic. The stock ended 2020 up an incredible 400%.
Fast forward to today, and shares are down more than 30% from all-time highs. The TSX stock is still up a market-beating 300% since the beginning of 2020, but it’s been almost nothing but downhill for the past half-year.
In the short term, telemedicine is not an area of the market I’d be particularly interested in. Over the long term, though, telemedicine is a growing sector that I’m certainly looking to gain exposure to.
WELL Health may continue to slide for a while longer, but the company’s long-term growth potential is why it’s at the top of my shopping list this holiday season.
