After a year that was full of losses for investors in 2022, there are high hopes for a strong rebound in 2023. The Canadian stock market got off to a hot start in January but has largely cooled off since then.
Interest rates and inflation continue to remain high, but that might slowly be about to change. After eight consecutive rate increases, the Bank of Canada announced earlier this month that it would be keeping interest rates as is for now. While there’s still a way to go before both interest rates and inflation return to pre-pandemic levels, there is now a reason to believe that we may be nearing the start of a new bull run.
With potentially more bullish times ahead, I’m making sure my watch list is loaded with top-quality companies. Here are four TSX stocks that I’ve got on my radar right now.
Shopify
Not that long ago, Shopify (TSX: SHOP) was not only the largest tech stock in Canada but the largest company on the TSX. But after dropping more than 70% in 2022 alone, Shopify has long given up the number one spot.
The tech sector as a whole got crushed last year, which wasn’t all that surprising to see after the massive bull run that followed the COVID-19 market crash.
Shares may be trading at a serious discount, but that’s not because of the health of the business. Shopify continues to grow its global market position in the e-commerce space, rivaling the tech giants of the world.
This is a buying opportunity that you’ll be seriously thanking yourself in a decade for taking advantage of.
goeasy
Prior to 2020, there weren’t many more consistent market-beaters on the TSX than goeasy (TSX: GSY). Even with shares trading close to 50% below all-time highs today, the growth stock is still up a market-crushing 200% over the past five years.
This is not a growth stock that goes on sale often, so I’d urge long-term investors to not miss out on this discount.
As interest rates slowly begin to drop back down, demand for the consumer-facing financial lender should start ramping back up.
Brookfield Renewable Partners
If you’re bullish on the long-term rise of renewable energy, now is the time to invest. Canadians have a few options to choose from on the TSX when it comes to discounted clean energy stocks.
At a market cap of $25 billion, Brookfield Renewable Partners (TSX: BEP.UN) is a global leader in the space. The company has operations spread across the globe, offering customers a range of different renewable energy solutions to choose from.
Down more than 30% from all-time highs, I don’t think it will be long before this energy stock is back to outperforming the market.
Sun Life
To balance out the first three growth-oriented companies on this list, I’ve included a dependable insurance leader. Growth investors may not get overly excited about this pick, but it’s one you’ll be glad to own if we’re headed for more volatility.
In addition to providing defensiveness to a portfolio, Sun Life can also be a meaningful passive-income generator.
At today’s stock price, Sun Life’s dividend is yielding just about 4.5%.
