3 Once-in-a-Generation Buying Opportunities in a TSX Bear Market

Are you looking for stocks that could lead to once-in-a-generation buying opportunities during a bear market?

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A bear market is a 20% decline in a major stock index, think of the S&P/TSX for example. When these events occur, many investors become hesitant to buy shares in fears of seeing those positions lose money immediately. However, it’s actually during those times that investors should get excited. During bear markets, excellent companies trade at very attractive prices. This could set investors up for once-in-a-generation buying opportunities.

Over the long run, the shares that investors buy during bear markets could drive portfolio growth. However, it’s essential that investors buy solid companies during bear markets, as subpar companies could falter or see a lot of difficulties during those periods.

In this article, I’ll discuss three stocks investors should consider buying during the next bear market.

Invest in this e-commerce stock

Shopify (TSX:SHOP) is the first stock that I would recommend that investors consider buying during a bear market. This company is widely known for its e-commerce platform that is used by first-time entrepreneurs and large cap enterprises alike. During bear markets, Shopify is likely to see a significant decline in its stock. This is because the company is reliant on consumer spending, which tends to decrease during tougher economic periods.

However, despite any potential slowdowns in its business, I think Shopify is still an excellent stock to hold for the long term. This is because of its leadership positioning within the massive global e-commerce industry. Shopify has managed to attract businesses like Netflix and Pepsi to its platform, which speaks to the value of its services. Shopify also offers merchants the opportunity to take advantage of a tremendous enterprise partnership network, which includes Meta Platforms and YouTube, among many other companies.

A top growth stock for your portfolio

Topicus.com (TSXV:TOI) is the next stock that investors should consider buying during a bear market. This company acquires vertical market software companies. What separates it from its peers is that Topicus focuses solely on the European tech industry.

This is beneficial for two reasons. First, it allows the company to specialize in a space, which could eventually lead to a competitive advantage over its peers. Second, European tech businesses tend to face less pressure from venture capitalists, which could help Topicus acquire businesses at a discount.

Topicus is famously known for its ties to Constellation Software. Although this company now operates on its own, as opposed to a subsidiary of Constellation Software, the two companies maintain a close relationship. Six members of Topicus’s board of directors are executives from Constellation Software. That relationship could help Topicus avoid many of the critical mistakes that plague newer holding companies.

This stock could grow immensely in the future

Finally, investors should consider buying shares of Docebo (TSX:DCBO). This company offers a cloud-based and AI-powered eLearning platform to enterprises. With many businesses now operating remotely, services like the one Docebo offers have become essential.

Docebo has managed to attract many of the world’s largest companies to its platform. This includes Amazon, which has chosen Docebo to power its AWS Training and Certification offerings worldwide. Docebo stock currently trades at a massive discount (-50% this year). Considering the strength of its business, and the continued growth it has shown, I believe this is a tremendous opportunity for investors today.

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.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren has positions in Docebo Inc., Shopify, and Topicus.Com Inc. The Motley Fool has positions in and recommends Shopify and Topicus.Com Inc. The Motley Fool recommends Amazon, Constellation Software, Docebo Inc., Meta Platforms, Inc., and Netflix. The Motley Fool has a disclosure policy.

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