There are always opportunities in the market for investors, assuming you know where to look. Right now, there are plenty of great options to buy at a discount. Here are just two of the many to choose from.
Shopify: Down nearly 50%!
Up until recently, Shopify (TSX: SHOP)(NYSE:SHOP) was the growth stock for your portfolio. That view is disputed by some, as the stock has shed nearly 50% of its value this year.
That drop can be attributed to a few different reasons. First, let’s remember that Shopify is a growth stock. That growth has been incredible over the past few years. Late last year, that growth began to slow, leading some investors to take profits and jump ship. Keep in mind this followed an expected surge in online shopping during the pandemic.
To be clear, that slowing revenue growth was only 41% growth in the quarter.
There’s also inflation and, by extension, interest rates to deal with. Prices are increasing on everything at near-record levels. The perception here is that consumers are directing their funds towards getting the essentials and not necessarily from the niche Shopify storefront.
Furthermore, as interest rates increase, investors will continue to shift away from more volatile growth-focused investments like Shopify to other areas of the market.
Do both these factors combined make Shopify any less of a stellar investment? No, not really. If anything, it’s a unique moment to buy at a discount. Shopify’s growth may slow, but that was always expected.
Bombardier: Down nearly 15%!
Bombardier (TSX: BBD.B) is another unique stock to buy at a discount. The business jet maker has dropped nearly 15% year to date, despite some impressive improvements to its bottom line.
As a reminder, Bombardier shed its other business units, which included its rail unit and commercial aviation business. The remaining segment provides an array of business jets to a niche market.
The jets also underwent a substantial revamp recently to raving reviews. In fact, its improved flagship Global Express line broke several records for distance, size, and speed. Bombardier’s smaller Challenger jet also saw renewed interest after its revamp.
To put it another way, the jets have a nearly full order book in excess of $12 billion, and Bombardier can expect years of solid growth.
So, then why is the stock down year to date?
Part of that stems from Bombardier’s business with Russia. The company severed all business with Russian clients earlier this year due to the crisis in Ukraine. This uncertainty may have pushed the stock lower, but the long-term prospects remain strong for this stock to buy at a discount.
The stocks to buy at a discount are available now
Finding the right mix of growth and income investments takes time. Fortunately, the two stocks noted above are great growth stocks to consider adding as part of your portfolio. The fact that they are stocks to buy at a discount right now is icing on the cake.
In other words, buy them, hold them, and watch them grow.
