3 Absurdly Cheap Canadian Stocks to Buy Today and Hold Until Retirement

Long-term investors won’t want to pass up these buying opportunities. Here are three top Canadian stocks to add to your watch list.

| More on:
Two colleagues working on new global financial strategy plan using tablet and laptop.

Image source: Getty Images

Since the pandemic began, there’s been a heightened amount of volatility in the stock market compared to years prior. In 2022, the narrative in the stock market has largely shifted from COVID-19 concerns to rising interest rates and inflation. And with inflation not looking like it will be under control anytime soon, these dramatic price swings may be something investors will need to live with for a while longer.

The beauty of being a long-term investor is that you don’t need to be overly concerned with how the stock market performs on a day-to-day basis. Even on a month-to-month basis, I’m not letting the stock market’s performance dictate how I invest my money.

As a long-term investor, my focus is on buying high-quality businesses and holding them for the long term. And it just so happens that there are plenty of those types of businesses on the TSX trading at bargain prices right now.

I’ve put together a list of three top Canadian stocks that any long-term investor should have on their radar.

I’m a shareholder of two of these companies already but may need to add to those positions again shortly.

Brookfield Renewable Partners

All long-term investors would be wise to have exposure to the growing renewable energy space. Green energy stocks have been outperforming the market in recent years, and I’m betting we’ll see that trend continue for decades to come.

At a market cap of $30 billion, Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is a global renewable energy leader. The company has operations spread across the globe that include a range of different types of renewable energy facilities. 

Shares are up a market-crushing 110% over the past five years. And that’s not even including the company’s dividend, which is currently yielding more than 3%.

With the energy stock nearing a new 52-week high, Canadians may not have the chance to start a position at a discount for much longer.

Descartes Systems

Compared to many other tech stocks, Descartes Systems (TSX:DSG)(NASDAQ:DSGX) has held up impressively well this year. Shares are down less than 10% in 2022, which is roughly on par with the S&P/TSX Composite Index’s return. 

Similar to Brookfield Renewable Partners, Descartes Systems operates in a market that’s loaded with growth potential. The tech company specializes in designing cloud-based solutions for supply chain management operations.  

Shares are up more than 150% over the past five years. In comparison, the broader market has returned less than 30%.

The company has seen its stock price jump up over the past month but long-term investors can still pick up shares at an opportunistic discount.

Shopify

As a Shopify (TSX:SHOP)(NYSE:SHOP) shareholder, I’ll admit that I might be somewhat biased. But, with shares down close to 80% over the past year, I’d argue that this beaten-down tech stock is one of the top bargains on the TSX today.

Even with the discount, shares are still up 200% over the past five years. Going back to when the company went public in 2015, the stock is now up more than 1,000%.

This isn’t the first major pullback Shopify has gone through, and I don’t expect it to be the last.

If you’re able to withstand the volatility, this is a discount that I’d urge all long-term investors to seriously consider taking advantage of.

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 Nicholas Dobroruka has positions in Brookfield Renewable Partners and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends DESCARTES SYS and Descartes Systems Group.

More on Investing

A worker drinks out of a mug in an office.
Stocks for Beginners

3 Stocks to Buy Today and Hold Forever

Looking for stocks to buy today and hold forever? Here’s a trio of options that offer defensive appeal in a…

Read more »

railroad
Investing

Better Rail Buy: CN Stock or CP Shares?

CP Rail (TSX:CP)(NYSE:CP) looks way too cheap to ignore after the recent bear market turbulence.

Read more »

data analyze research
Investing

3 TSX Small Caps to Buy Right Now

Given their high-growth prospects and cheaper valuation, these three small-cap stocks look attractive.

Read more »

rail train
Dividend Stocks

3 TSX Stocks I Own and Will Buy More of If the Stock Market Crashes

These TSX stocks may be down, but don't count them out. In fact, buy up as much as you can…

Read more »

Upwards momentum
Investing

3 of the Top-Growing Stocks on Earth

Canadian investors may want to branch out and target top-growing stocks like Exxon Mobil Corp. (NYSE:XOM) in the early fall.

Read more »

A worker uses a laptop inside a restaurant.
Investing

3 of the Best Stocks to Buy After Last Week’s Selloff

After many Canadian stocks fell rapidly in price last week, here are three of the best to buy to take…

Read more »

stream movies at home
Dividend Stocks

3 TSX Stocks With High Dividend Yields

As markets continue to sell off, here are three of the best TSX dividend stocks you can buy to earn…

Read more »

A worker gives a business presentation.
Investing

3 TSX Stocks That Are Actually Beating the Market

Dependable TSX stocks like Hydro One Ltd. (TSX:H) and Loblaw Companies Ltd. (TSX:L) have beaten the TSX in a harsh…

Read more »