2 Canadian Stocks at the Top of My Buy List

Here are two of the top Canadian stocks on my buy list, as the market uncertainty continues to plague Canadian investors.

| More on:
analyze data

Image source: Getty Images

The massive selloff triggered by the recent-most aggressive interest rate hikes by central banks in Canada and the U.S. has seen plenty of top TSX stocks trading for discounted valuations. Several of the best businesses to buy and hold long term are trading for heavily discounted prices.

Many risk-averse investors tend to take their money and run away from equity markets during bear market environments. However, the more opportunistic investors look at the same situation as a chance to enjoy investing in the market at a bargain. Investing in undervalued stocks during uncertain market environments can be an excellent way to take advantage of the situation.

Investors can enjoy significant wealth growth by purchasing shares in companies at discounted prices. Once the situation eventually stabilizes, high-quality companies will likely regain momentum and deliver stellar returns to value-seeking investors savvy enough to identify and invest in undervalued stocks.

It is important to take your time to conduct due research and invest in companies likelier to deliver strong returns in the coming years. If you have some cash set aside to invest in discounted stocks today, I will discuss two Canadian stocks that have been on my radar in the last few weeks.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) is a $738.01 million market capitalization multichannel digital health technology company. It is also Canada’s most significant owner and operator of outpatient health clinics. The company is one of the biggest providers of telehealth services in the country.

WELL Health Technologies went through a boom during the pandemic, owing to the innovative solutions it offered amid pandemic-induced restrictions.

WELL Health Technologies stock trades for $3.32 per share at writing. It is down by a massive 62.52% from its 52-week high. It saw most of its pandemic gains wiped off due to the tech-sector meltdown. Despite its troubled performance on the stock market, the company’s sales keep rapidly rising.

Its profitability has been improving in recent months, and it could be a bargain for Canadians with a long investment horizon.

Jamieson Wellness

Jamieson Wellness (TSX:JWEL) is a $1.40 billion market capitalization company engaged in manufacturing, distributing, and marketing branded natural health products. The company’s products include vitamins, minerals, and supplements. It rose to popularity amid the pandemic, as the demand for wellness businesses soared.

Jamieson Wellness stock trades for $34.52 per share at writing. It is down by 17.29% from its 52-week high. The company’s highly defensive operations and ability to deliver stellar growth could make it an attractive asset for investors to consider for the long haul.

Foolish takeaway

It is important to remember that stock market investing is inherently risky. The risk becomes even more significant during uncertain market environments, which is why many investors tend to offload their holdings in equity markets for “safer” asset classes.

However, making calculated investment decisions during volatile market environments can help you leverage the risk for stellar returns when markets stabilize. Investing in companies with the potential to deliver exceptional returns, in the long run, can provide you with a good opportunity to enjoy long-term wealth growth.

Jamieson Wellness stock and WELL Health Technologies stock could be excellent investments to consider for this purpose.

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.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »