Forget Shopify Stock: 3 Other Cheap Canadian Stocks to Buy Now

Shopify (TSX:SHOP)(NYSE:SHOP) stock looks cheap, but so do many other TSX stocks. Spread your money around!

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The Shopify stock price crash is making the growth stock look super cheap from the standpoint of long-term growth in the e-commerce space. However, if you already hold a position in SHOP stock, it would be smart to diversify into other Canadian stocks that also have strong growth potential.

Investing is about managing risks, spreading your money around, and getting a satisfactory return in the long run. Now’s a good time to forget about Shopify and consider these other cheap Canadian stocks.

Manulife stock: A cheap dividend stock

Multiple pundits believe that value stocks can outperform growth stocks over the next few years. Manulife (TSX:MFC)(NYSE:MFC) Is easily one of the cheapest Canadian dividend stocks with a big dividend. If you’re looking for passive income or the chance to beat the market over the next five years, you should look more closely at Manulife.

Here’s Ross Healy’s comment on Manulife stock last week on BNN:

“Likes it still, especially with rising interest rates. Lifecos will earn more on their spreads. Still on the cheap side.”

Ross Healy, chairman of the Strategic Analysis Corporation

Just how cheap is the stock? At $26.90 per share at writing, it trades at only about 8.2 times earnings. The analyst consensus is expecting the life and health insurance company to grow its earnings per share by about 9% per year over the next few years. Moreover, MFC stock pays a yield of almost 5% to wait.

There’s no reason not to buy some shares. Even if no valuation expansion occurs, investors can still pocket annualized returns of about 13% over the period.

Chorus Aviation could double your money!

Shopify stock isn’t the only stock that has the potential to double your money. Chorus Aviation (TSX:CHR) could, too! They’re totally different businesses, and that’s where the diversification comes in and makes investing interesting.

Cyclical stocks like Chorus Aviation can grow rapidly on a turn of events. Chorus Aviation provides regional aviation services and regional aircraft leasing, which is why it was depressed due to the COVID-19 pandemic. Investors group the stock along with the likes of Air Canada. However, it is in a much better financial position.

Chorus Aviation stock also used to pay a dividend. If it restarts its dividend, which yielded roughly 6% pre-pandemic, the stock is surely to trade much higher. Expect volatility along the way of the stock recovery, though.

Gold stocks

Many gold stocks are also very cheap. In particular, Equinox Gold (TSX:EQX)(NYSE:EQX) trades at about 6.8 times cash flow. According to Yahoo Finance, 12 analysts have a consensus price target that suggests the gold stock could appreciate 49% over the next 12 months.

The mid-cap gold miner is on its way to producing a million ounces of gold per year. Right now, it’s about 67% there. It has seven producing mines and five growth projects across the U.S., Canada, Mexico, and Brazil with reserves of 16 million ounces. Furthermore, it has a strong balance sheet and cash flows to fund its growth. At the end of 2021, it had total liquidity of about US$510 million.

The Foolish investor takeaway

If you have some extra cash to invest, on top of Shopify, also consider cheap Canadian stocks like Manulife, Chorus Aviation, or Equinox Gold. Good stocks take turns outperforming. So, it’s a good idea to diversify your capital across a basket of stocks with good potential for appreciation.

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.

The Motley Fool owns and recommends CHORUS AVIATION INC and Shopify. Fool contributor Kay Ng owns shares of CHORUS AVIATION INC, Equinox Gold, Manuife, and Shopify

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