3 Undervalued TSX Stocks You Can Buy at a Screaming Discount

The Canadian stock market might be on the rise, but there are still deals to be had. Here are three discounted TSX stocks to put on your watch list.

| More on:
edit Sale sign, value, discount

Image source: Getty Images

Investors have been able to breathe a sigh of relief recently after what’s been an incredibly volatile year. After a strong push over the past two months, the S&P/TSX Composite Index is now nearing positive territory in 2022.

Despite the recent gains, there’s still no shortage of uncertainty in the stock market today. Whether it’s from rising interest rates or inflation or geopolitical concerns, it’s incredibly difficult to predict how the stock market will perform in the short term. 

As a long-term investor, I’ve embraced the volatility this year. Canadians have been presented with rare buying opportunities that may not come along again for years. 

I’ve put together a basket of three top TSX stocks that are all trading at massive discounts right now. All three companies are also very different from one another, providing diversification for anyone interested in owning all three. 

If you’re a long-term investor with some cash to spare, I’d seriously consider starting positions in these three companies.


Canadians haven’t had many opportunities over the past decade to invest in goeasy (TSX:GSY) while it’s been on sale. The $2 billion company has quietly been one of the top-performing TSX stocks over the past 10 years. Shares are up nearly 250% over the past five years and over 1,000% going back a decade.

The high-interest-rate environment has taken a short-term hit on the company. As interest rates have spiked, demand for the company’s consumer-facing loans has unsurprisingly slowed. 

Shares are down close to 50% from all-time highs set in late 2021.

Long-term investors looking to add a well-priced growth stock to their portfolio should have this under-the-radar company on their watch list.

Lightspeed Commerce

Alongside many other high-flying tech stocks, shares of Lightspeed Commerce (TSX:LSPD) have come crashing down in 2022. 

The Montreal-headquartered tech company enjoyed monster gains for roughly a year and a half following the COVID-19 market crash. But since late 2021, it’s been nothing but downhill for Lightspeed.

Recent stock performance aside, this is still a young company that’s loaded with market-beating growth potential. Lightspeed continues to reinvest aggressively back into the business to both grow its product offering and international presence in the commerce space.

Growth investors comfortable with volatility should seriously consider taking advantage of Lightspeed being down 50% this year.

Algonquin Power

The last pick on my list is a slow-growing dividend stock. While it’s not the most exciting company to own, if you’re going to invest in high-priced growth companies, you’d be wise to own a few shares of a high-yielding utility company like Algonquin Power (TSX:AQN).

The stock is coming off an unusually steep selloff after the market was underwhelmed by the company’s most recent quarterly earnings. While revenue growth was positive, net income growth was not, which the company attributed to the high-interest-rate environment.

With interest rates not looking like they’ll cool off anytime soon, I wouldn’t blame short-term investors for passing on this discounted utility stock. But over the long term, this is a proven company that can offer investors a whole lot.

At today’s discounted stock price, the company’s dividend yields a whopping 9%. Good luck trying to find another high-quality dividend stock on the TSX with a yield anywhere close to that.

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 Lightspeed Commerce. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

More on Investing

sale discount best price
Energy Stocks

Time to Pounce: 1 Phenomenal TSX Stock That Hasn’t Been This Cheap in a While

Now could be the time to get into Cameco (TSX:CCO) stock, which is up 81% in the last year but…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

3 Millionaire-Maker Tech Stocks That Should Be on Your Radar

These three tech stocks have already proven themselves worthy, but have a lot more to prove in the near future.…

Read more »

A close up image of Canadian $20 Dollar bills
Tech Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

These three stocks are easy buys for those who don't have all that much to spend, and want long-term growth…

Read more »

calculate and analyze stock
Dividend Stocks

4 Fabulous Dividend Stocks to Buy in July

Are you looking for long-term income? These four dividend stocks should not only provide you with value in July but…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Stocks for Beginners

The Top 3 Long-Term TSX Growth Stocks to Buy Today

These three growth stocks might be some of the best-performing stocks of the last year, but according to analysts so…

Read more »

financial freedom sign
Dividend Stocks

5 Steps to Financial Freedom for Canadian Millennials

Follow these steps and nothing can stop Canadian millennials from achieving their early retirement dreams.

Read more »

top TSX stocks to buy

3 Top Canadian Growth Stocks That Could Make You Rich in 10 Years

Given their healthy growth prospects and attractive valuation, these three growth stocks could create superior wealth in the next 10…

Read more »

edit Sale sign, value, discount

Couche-Tard Stock is a Tremendous Bargain Today

Alimentation Couche-Tard (TSX:ATD) stock looks like a great bargain ahead of its coming earnings report.

Read more »