2 Cheap Stocks That Could Make You Rich in 2022

These two discounted stocks have the potential to be top performers not only in 2022 but for many years to come.

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The Canadian stock market is coming off an incredibly strong year, despite the global pandemic continuing to run rampant. The S&P/TSX Composite Index ended 2021 up over 20%, a significant improvement from the year prior.

With the market soaring near all-time highs, now is not the time that I’d necessarily suggest taking profits. There are plenty of top TSX stocks trading at bargain prices and in prime positions to rebound this year. 

If you’ve got cash readily available, I’d recommend putting that money to work fairly soon — especially if you’re looking to take advantage of some of the major sales on the TSX today.

Investing in oversold stocks

Even with the stock market’s strong performance last year, plenty of individual industries did not fare nearly as well. Travel and telemedicine are just two examples. 

But with plenty of optimism to kick off this new year, now is an opportunistic time to go bargain hunting. I’ve reviewed two Canadian stocks that I believe are in oversold territory. If you can stomach the volatility, there’s plenty of upside for these two companies in 2022 and beyond. 

Air Canada

Canada’s largest airline, Air Canada (TSX:AC) had been a consistent market-beating stock before the world was hit with COVID. Shares were up close to a whopping 300% in the five years prior to the pandemic.

The airline stock understandably plummeted in early 2020 and is now trading more than 50% below all-time highs.   

In the early days of the pandemic, air travel was full of uncertainties, which is exactly what investors dislike most. But I believe we’ve now been living with this pandemic long enough to have a much clearer idea of what the future of air travel looks like. And it doesn’t look a whole lot different than it did before COVID came long. 

Air Canada stock dropped 70% in less than one month in early 2020. I’m not predicting we will see shares spike back up as quickly, but the airline stock is certainly no stranger to delivering multi-bagger gains within a year.

WELL Health Technologies

Telemedicine stocks had somewhat of an opposite reaction to the pandemic compared to the airlines. Companies offering virtual healthcare services, such as WELL Health Technologies (TSX:WELL), saw demand explode at the beginning of the pandemic. As a result, shares of many of those telemedicine stocks surged in 2020.

WELL Health ended 2020 up 400%. In 2021, though, along with many of its competitors, WELL Health trailed the market’s returns. Shares ended last year down more than 30% and are currently trading close to 50% below all-time highs.

With telemedicine stocks now in what I believe is oversold territory, I’ve got WELL Health at the top of my watch list. 

Not only do I think the stock has the potential to rebound this year but I’m also a huge bull on the long-term growth potential of the telemedicine industry. And at a market cap of only $1 billion still, there’s plenty of multi-bagger growth left in the tank for WELL Health.

If you’re looking for market-beating returns in both 2022 and many years to come, I’d strongly suggest putting this telemedicine stock on your watch list.

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 Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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