Throughout the year, stocks have faced several headwinds that caused many to lose value. In addition to supply-chain constraints and surging inflation, many companies have also had to deal with rapidly rising interest rates.
These headwinds not only make it more difficult for many businesses to operate, but they could also impact revenue due to the impact these headwinds have on consumers.
The good news is that these environments create excellent buying opportunities for long-term investors.
Furthermore, many of these headwinds look like they’re about to subside. For example, inflation looks like it may have already peaked, and interest rates may also be reaching their peak soon.
If you’re looking to take advantage of this environment, it’s crucial to do so while these high-quality stocks are still on sale.
And if you’ve got cash to invest today, here are three of the best stocks to buy while they’re still cheap.
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A top Canadian REIT
The real estate sector offers some of the best investments for value investors in this environment, especially high-quality residential and industrial real estate investment trusts (REITs).
Of all the REITs you can buy, one of the best to consider today is InterRent REIT (TSX: IIP.UN), as it still trades roughly 30% off its high.
InterRent is an attractive investment. On top of operating in the highly defensive residential real estate industry, it’s also a high-quality growth stock that’s consistently growing the value for investors.
As of Monday’s close, in just the last decade, InterRent investors have earned a total return of more than 200% compared to the TSX, which has gained just 67% over that stretch.
While this high-quality growth stock trades 30% off its high, it’s one of the top stocks to consider adding to your portfolio today.
Gold stocks look like they could finally begin to rally
All year long, gold stocks have struggled, as the price of gold has fallen substantially. This isn’t surprising, as rapidly rising interest rates have impacted the value of stocks in many different industries, but especially gold.
However, as interest rates appear that they could be peaking soon, the price of gold has already begun to increase. And consequently, many Canadian gold stocks are now trading off their lows.
However, even with a slight rally lately, plenty of attractive gold stocks are still trading undervalued, such as B2Gold (TSX: BTO).
B2Gold is especially impressive, because it’s one of the lowest-cost producers in the industry, a significant advantage for any commodity producer. In addition to its attractive economics, B2Gold has proven for years what a high-quality operator it is.
Furthermore, in addition to low-cost production, B2Gold also has a tonne of cash on its balance sheet and almost no debt. Therefore, it’s well positioned for this environment and could consider an acquisition.
Finally, one of the main reasons investors are hesitant to own gold investments is that the precious metal doesn’t offer a yield, and many gold stocks don’t return much capital to investors.
However, B2Gold pays one of the most attractive dividends in the space. As of Monday’s close, the stock offered investors a more than 4.7% yield.
If you’re looking to take advantage of all the value the market offers in this environment, B2Gold is one of the best stocks you can buy now.
A massive green energy stock to buy and hold for the long haul
Lastly, some of the best long-term investments you can make today are in industries such as green energy, which have a massive decades-long runway for growth. That’s why the largest stock in the sector, Brookfield Renewable Partners (TSX: BEP.UN), is one of the best investments to make while it remains ultra-cheap.
As of Monday’s close, Brookfield was trading less than 2% off its low and more than 25% off its 52-week high. That’s a compelling discount for one of the best renewable energy stocks you can buy.
Brookfield is a top investment due to its massive portfolio, which is diversified all over the world, and its track record of making high-quality investments and consistently increasing the cash flow its business generates.
While it trades at a massive discount, it’s one of the best stocks to buy before the market rallies any further.
