The 3 Best TSX Stocks to Buy Now Before They Bounce

Those looking for long-term value should consider buying these TSX stocks while they’re down for passive income and returns.

Amy Legate-Wolfe

Author Bio

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband.

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Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published February 23, 2023 12:30 pm EST

There are certain companies that are bound to rebound. Not only that, but there are companies that are bound to keep rebounding for years, even decades, to come. And these three TSX stocks could certainly be those to consider buying today.

A person looks at data on a screen — Image source: Getty Images

Nutrien

Nutrien (TSX: NTR) is absolutely one of those TSX stocks you should consider buying while it’s down and holding long term. The crop nutrient company has spent years expanding, even during the pandemic when e-commerce proved invaluable.

The issue for Nutrien stock is that inflation and higher interest rates have hurt the company, just like everyone else. Because of this, it’s had two earnings reports that came in below estimates.

Now, Nutrien stock is far below the share prices of 52-week highs. You can pick it up at just $104 per share as of writing, with a 2.81% dividend yield and trading at 5.46 times earnings.

Lightspeed Commerce

If you’re willing to take on a bit more volatility, then Lightspeed Commerce (TSX: LSPD) is a great choice. Again, e-commerce rebounded during the pandemic in big ways. Now, we’re going through a slump. Among TSX stocks, the e-commerce batch has perhaps been hit the hardest.

That won’t be forever, and in the case of Lightspeed stock may not even be for long. While the company did state it should come in lower than earlier estimates, it has a habit of coming in low so that it can later beat out its own estimates.

You can pick up Lightspeed stock trading down 37% in the last year, though it’s up 9% since the beginning of the year.

NorthWest

We’ve talked about a young stock that should have a stable future and a tech stock with more volatility, so now we need a stable company for long-term income. Among TSX stocks, some of the best options out there are in real estate. However, real estate doesn’t mean stable, as we’ve seen here in Canada.

That’s why NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a fantastic option. NorthWest stock holds a portfolio of real estate properties in the healthcare field across the world. It holds a 97% occupancy rate as of writing as well as an average lease agreement at 14 years for stable revenue.

If you were to pick up NorthWest stock today, it’s a value TSX stock trading at just 8.41 times earnings. Further, it offers a massive 8.26% dividend yield!

Bottom line

You’ll notice all three of these TSX stocks are quite young if you look back on their historical performance. Because of this, that brings on volatility, so make sure you have room for this in your portfolio strategy before going ahead.

That being said, these TSX stocks also have a huge potential for long-term returns, since they’re still babies on the market. As they continue to take on a large part of the market share, investors should continue to see returns rise higher and higher. Meanwhile, you can bring in passive income from two of them and see the likelihood of quick returns in the near future for the other.