Canadian investors who have been fiddling with different stocks on the TSX for a while might be able to point out several names that they missed earlier in their investing careers, only to miss out on what could have been massive investment returns for them.
Sometimes, you might be satisfied with the safer investments that you have made. But it is impossible not to feel bad when you see one asset you missed outperforming the broader market. It can even feel like you are losing money just because you didn’t buy that stock when you had the chance.
If you’re just starting investing, you might want to consider adding more stocks that could provide you with market-beating returns. The TSX boasts several names that have risen consistently for decades. But once a stock reaches a significantly high valuation, it is unlikely for it to provide its investors with returns as substantial as it did for early investors.
Today, I will take a look at two Canadian stocks that you should have on your radar that could be attractive bargains at current levels.
Cargojet
Cargojet (TSX: CJT) is a stock that has grown in popularity in recent years, coinciding with the rise of the e-commerce industry. The company has provided impressive shareholder returns in the last decade. The $2.88 billion market capitalization company is a Mississauga-based scheduled cargo airline that operates cargo services in Canada and abroad.
The company ships small overnight deliveries, in essence, capitalizing on the e-commerce industry’s need for rapid deliveries. Its role in the industry made it one of the rare few airlines that saw revenues grow in 2020 instead of declining to devastating levels. At writing, Cargojet stock is trading for $165.96 per share, and it is down by almost 21% year to date. It could be an excellent buy at current levels.
Toronto-Dominion Bank
Toronto-Dominion Bank (TSX: TD)(NYSE: TD) is a mammoth in Canada’s financial services industry. The $173.25 billion market capitalization bank is headquartered in Toronto, and it is a part of Canada’s Big Six banks. The historical record for the performance of Canada’s Big Six has shown that you cannot go wrong when investing in any of these big names.
TD Bank stock has proven itself as an asset that long-term investors can bank on, despite turbulent operating environments.
The 2008 market crash saw several top global financial institutions crumble. TD Bank stock managed to hit a low of $15 during the worst period of the market crash. At writing, TD Bank stock is trading for $95.09 per share, and it appears strong, despite present challenges. To make things even better, TD Bank stock boasts a juicy 3.74% dividend yield at its current levels.
Foolish takeaway
An overnight transportation company profiting off the rise in the e-commerce industry and a longstanding financial institution with room for further growth are two completely different companies. One stock has risen in popularity in recent years, while the other has provided substantial long-term growth in a well-established industry.
The two companies might be drastically different but have one commonality: the potential to provide you with significant long-term wealth growth. Consider adding Cargojet stock and TD Bank stock to your investment portfolio if you are looking for Canadian stocks for short- and long-term wealth growth.
