Interest rates are on the rise again. Markets are battling the highest inflation seen in decades. The post-COVID market recovery is still plagued by supply and global resource shortages. All this adds to the volatility we’re seeing right now and exposes an opportunity. There are great value stocks on the market right now just asking to be bought.
Here are some of those stocks to consider for long-term growth.
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How does a 75% discount sound?
The market hasn’t been kind to Shopify (TSX: SHOP)(NYSE:SHOP) this year. The e-commerce behemoth has seen its stock tumble a whopping 75% this year.
During the pandemic, consumers stuck at home turned to online shopping as a replacement for visiting a brick-and-mortar store. That led to Shopify’s stock soaring to new highs. With stores now fully re-opened, that boost in e-commerce spending has dried up.
Throw in rising inflation, and concerns about the economy teetering towards a recession, and you could see why Shopify’s stock has cooled significantly.
Shopify’s drop doesn’t mean that there isn’t an opportunity to be realized. In fact, it’s the opposite. Shopify still fully expects revenue growth to pick up later this year. The company also continues to carry on with initiatives to further that growth. A prime example of this is the recent acquisition of Deliverrr.
Furthermore, Shopify will complete a 10-for-1 split later this month. Keep in mind that stock splits don’t add any new value, but do attract smaller investors, particularly given the pre-split price of the stock. As of the time of writing, Shopify trades at just over $420, making it a superb option on a list of great value stocks.
An airline with a plan
Airlines were one of the most impacted segments of the market during the pandemic. In fact, Air Canada (TSX: AC), was one of the best-performing stocks on the market pre-COVID.
Now that markets are opening up again, a return to profitability could be sooner than expected. The airline is actively working on several initiatives to ramp up revenue and reduce expenses. Prime examples of this include bolstering cargo capacities and increasing an existing order for more fuel-efficient aircraft.
Results are also improving. In the most recent quarter, Air Canada reported an operating loss of $550 million. That actually pales in comparison to the whopping $1.049 billion operating loss for the same period last year.
Air Canada is set to resume growth and return to profitability. The company also has superb management that has experience dealing with turning the business to profitability.
In short, Air Canada is one of the great value stocks for your portfolio, as long as you can tolerate some risk.
Banking on growth is the way to go
The third option for investors to consider is Canadian Imperial Bank of Commerce (TSX: CM)(NYSE: CM). CIBC is one of Canada’s big banks, boasting a history of juicy dividend payouts as well as solid growth.
The stock is also trading well into the lower portion of its 52-week range, with an incredibly low P/E of just 9.32. CIBC also recently completed a 2-for-1 split, which, as with Shopify’s impending split mentioned above, attracts smaller investors into the pool.
Much of the weakness that drove CIBC’s stock down over 10% this year can be traced back to market weakness and confidence. As interest rates creep up, mortgages become more expensive. Fears of a recession also become louder. Those concerns are priced into the current stock price.
Let’s also take a moment to talk dividends. CIBC’s quarterly dividend currently carries a juicy 5.11% yield, making it one of the better-paying options on the market.
In short, CIBC remains one of the great value stocks to buy now.
