The recent stock market correction has created great opportunities to buy amazing stocks on sale! These opportunities do not come often. If you are looking to pick up some bargains, here are five amazing stocks to consider today.
A top payments stock
It provides integrated payments services to merchants across the world. Last year, it grew revenues, EBITDA, and earnings per share by over 90%. This year, it is targeting around 30% growth. This still a very healthy rate.
After its shares collapsed, it trades for only 14 times EBITDA and 20 times earnings. Less-profitable peers, like Lightspeed and Shopify, still trade at many times that. Given its solid growth rate and positive mid-term outlook, this is a reasonable price to pay.
A top Canadian retailer
Another stock that has recently pulled back is Aritzia (TSX:ATZ). It is down 30% this year. This is a bit shocking, considering that Aritzia has been delivering incredibly solid earnings.
In its most recent quarter, net revenues and net income increased 66% and 113%, respectively. Aritzia is gaining strong traction in the United States, where it has a large market to expand into.
Today, the stock is the cheapest it has been in a year. The market is worried about supply chain issues and a recessionary slowdown in consumer spending.
Despite that, Aritzia still expects 20% revenue growth this year. It has a history of underpromising and overdelivering, so chances are good that management is being conservative.
A top software stock
Another very interesting growth stock is Topicus.com (TSXV:TOI). This $5 billion company is not well known by the market. It was spun out of Constellation Software early last year. The stock soared to $140 per share but trades for around $68. This looks like a very attractive opportunity.
If you know anything about Constellation Software, it is one of the most successful stocks on the Toronto Stock Exchange. Over the past 10 years, it has delivered a 2,000% total return. Topicus is essentially replicating the same software consolidation strategy as Constellation, but with a focus in Europe.
Management is very focused on the long term, so it may take a while for this investment thesis to roll out. However, if it can do even half what Constellation did in its early years, investors will be very happy.
Two transport businesses with great long-term returns
If you are looking for two well-established businesses, then you may want to consider buying TFI International and Cargojet (TSX:CJT). Both are leaders in the transport industry — one on the road and one in the sky.
Despite delivering great first-quarter earnings, TFI stock has pulled back by 28% this year. The company has a great balance sheet. A recession could open up opportunities to acquire discounted transport businesses to its portfolio. Today, it only trades for 11 times earnings — far below its average of 13.
Cargojet is leader in overnight air freight transportation in Canada. However, it is expanding services internationally. This could be a major growth opportunity over the long term.
This stock trades with an enterprise value-to-EBITDA ratio of eight. It hasn’t been this cheap since 2017. Cargojet has a history of very strong returns. Investors should enjoy ample upside ahead, but they may have to be patient in the current volatile stock market.