The sharp recovery rally in the stock market following the COVID-led plunge lost its steam in 2022. This year has been tough for equity investors, as the selloff led by inflation and interest rate hikes eroded a significant portion of investors’ wealth.
While several top TSX stocks have lost considerable value, the uncertain economic environment indicates that stocks could remain volatile in the coming months.
However, given the plunge in prices of several top-quality TSX stocks, now is an excellent time for long-term investors to start accumulating these shares. Here are some compelling bargains investors could consider investing in at current levels for the long term.
Shopify
Tech stocks have been beaten down badly on growth concerns. Thus, investing in a top-quality tech stock could be a smart move for long-term investors. Within the tech space, Shopify stock offers a good bargain. Despite the recent recovery in its price, Shopify (TSX:SHOP)(NYSE:SHOP) is still down about 79% from its highs, providing an excellent buying opportunity.
The internet commerce platform provider faces easier comparisons in the second half of 2022, which would support its financials and stock price. Furthermore, Shopify would benefit from the traction in its growth initiatives.
The ongoing digital shift, Shopify’s new commercial initiatives, and aggressive investment in e-commerce infrastructure, including POS and Shopify fulfillment network (SFN), augur well for long-term growth.
Moreover, its large addressable market, focus on expanding its products in new geographies, partnerships with social media companies, the rising adoption of its payment offerings, and high-value product launches will likely support its growth.
goeasy
goeasy (TSX:GSY) stock has fallen more than 50% from its highs, despite its strong financial performance for the past several quarters. This leasing and lending services provider has consistently delivered double-digit revenue and earnings growth. Moreover, it has enhanced shareholders’ value through higher dividend payments.
goeasy’s wide range of lending products, higher loan originations, focus on channel and geographic expansion, an increased mix of secured loans, and large addressable market augur well for top-line growth. Also, an increase in loan ticket size, new product launches, and acquisitions could accelerate its growth. Moreover, higher payment volumes and margin expansion will likely cushion its earnings.
Given the steep decline in its stock price, ongoing momentum in the business, and strong growth prospects, the decline in goeasy stock seems unwarranted. Moreover, goeasy stock offers a solid dividend yield of 3.6%.
WELL Health
Like goeasy, WELL Health (TSX:WELL) continues to deliver stellar financial and operating performances. However, its stock has declined nearly 62% from its 52-week high, providing a solid buying opportunity.
WELL Health’s top line continues to grow at a breakneck pace thanks to the higher patient visits. Moreover, it has delivered positive adjusted EBITDA in the past several quarters. Notably, this digital healthcare services provider benefits from the strong growth in omnichannel patient visits.
WELL Health stated that the momentum in its business has sustained in Q2. Moreover, it is well positioned to deliver profitable growth in 2022.
Strong organic sales, strength in the U.S.-focused virtual patient services businesses, benefits from acquisitions, and ramp-up in M&A activities will likely support WELL Health’s growth in the coming years.
Bottom line
These TSX stocks have corrected over 50%, despite their strong fundamentals. Moreover, the momentum in their base business and multiple growth catalysts suggest that these TSX stocks could easily double in the long term.
