Although on the surface 2022 has been a poor year for stock performance, savvy investors know that these markets create some of the best opportunities to buy high-quality stocks that you can hold for the long run while they trade ultra-cheap today.
And since there’s no telling how long this down market may last, it’s essential that investors take advantage and buy these high-quality stocks while they offer tremendous value.
So if you’ve got cash that you’re looking to invest but don’t know where to start, here are three of the best Canadian stocks that I’m buying while the uncertain market environment persists.
Source: Getty Images
One of the top Canadian growth stocks I’m buying on the dip
One of the top growth stocks in Canada that’s become ultra-cheap this year yet still offers years of rapid growth potential is goeasy (TSX: GSY). Without hesitation, while this specialty finance company trades undervalued, it’s one of the top stocks I’m buying for my portfolio.
goeasy’s an appealing investment, of course, for its rapid growth potential. In just the last five years, its revenue has grown by over 107% or a compounded annual growth rate of 15.7%. However, it’s also a high-quality company due to its impressive financial strength. goeasy consistently earns adjusted returns on equity of roughly 25%.
Furthermore, because of this enviable performance and its rapid growth, over the last five years, goeasy has increased its dividend by over 400%. And today, the stock offers investors a yield of 3.2%, not bad for a rapid-growth stock.
Therefore, while goeasy continues to trade off its highs and at a forward price-to-earnings ratio of just 8.6 times, it’s one of the top Canadian stocks I’m buying in this environment.
A top healthcare tech stock
Another high-quality stock that’s too cheap to pass up is WELL Health Technologies (TSX: WELL). WELL is a fantastic business that owns both digital health and telehealth apps while also having exposure to physical clinics. In fact, WELL is the largest owner/operator of outpatient medical clinics in Canada.
This makes WELL’s business highly defensive in addition to having so much growth potential. It’s also why the stock has become so cheap, especially when you consider that WELL is actually growing faster than many analysts expected.
Therefore, with WELL trading at below $3 a share, it’s a stock I’m buying till I’m blue in the face. At this price, WELL trades at a forward enterprise value-to-sales ratio of just 1.8 times. Furthermore, with WELL on the verge of profitability, it’s trading at a forward price-to-earnings ratio of just 10.7 times.
So if you’re looking for high-potential growth stocks to buy today and hold for years, WELL is one of my top recommendations.
One of the best blue-chip stocks I’m buying for the core of my portfolio
In addition to high-potential growth stocks trading undervalued, like WELL and goeasy, there are also highly reliable blue-chip stocks that I’m buying on the dip as well, such as BCE (TSX: BCE).
Because BCE is a massive telecommunications stock, much of its operations are highly resilient. Furthermore, many of the assets it owns are long-life assets. These assets help BCE to be a major cash cow.
Undoubtedly, in this environment with a potential recession on the horizon, BCE is one of the best stocks you can buy. It’s fallen in value as interest rates have been rising. But interest rates will soon peak, as many investors and analysts expect in the coming months. In this case, BCE should start to bottom. Undervalued, it could be one of the best stocks you hold through this uncertain investing environment.
Therefore, BCE and its 6% dividend yield is one of the top stocks I’m buying today, while it trades just off its 52-week low and well below its fair value.
