After a rough ending to a forgettable year for investors in 2022, the Canadian stock market got off to a hot start in 2023. The S&P/TSX Composite Index surged more than 5% in January. But since early February, it’s been a gradual decline, returning the majority of the gains earned earlier in the year.
Despite the recent pullback, though, there certainly are reasons for long-term investors to be bullish today. Interest rate hikes are finally beginning to slow down, hinting that the hikes may be doing their job of taming inflation. There’s still a ways to go before returning to pre-pandemic levels, but we can now say that it’s possible that the worst may be behind us.
With a market rebound looming around the corner, now is an excellent time for long-term investors to be putting cash into the stock market. And fortunately, for Canadian investors, the TSX has no shortage of discounted stocks to take advantage of.
Here are two top stocks trading at bargain prices that may not be around for much longer.
Canadian stock #1: goeasy
Not many stocks have been as consistent as goeasy (TSX:GSY) over the past decade when it comes to market-beating returns. Growth has slowed in recent years, but the stock still continues to massively outperform the broader market’s performance.
Today, shares are trading at just about 50% below all-time highs that were sent in late 2021. Still, the stock is up a market-crushing 180% over the past five years.
As a consumer-facing financial lender, high interest rates have understandably hurt demand for goeasy in the short term. But over the long term, it’s only a matter of time before the company begins to see demand ramp back up.
If you’ve got a time horizon that allows you to be patient, you won’t want to miss this buying opportunity.
Canadian stock #2: Northland Power
Renewable energy is one area of the stock market that has been suffering as of late. The sector as a whole has been on the decline since early 2021, presenting a great buying opportunity for long-term investors.
At a market cap of close to $10 billion, Northland Power (TSX:NPI) is a great company to own for instant diversification to the renewable energy space. The company has a global presence with a wide-ranging portfolio of assets.
Shares are down 20% over the past year and more than 35% below all-time highs.
Still, Northland Power has managed to nearly double the returns of the S&P/TSX Composite Index over the past five years. And that’s not even including the energy company’s impressive 3.5% dividend yield, either.
For a sector loaded with long-term growth potential, now would be a wise time to load up on this discounted market leader.
Foolish bottom line
I wouldn’t bank on volatility slowing down just yet. There’s still plenty of uncertainty in the short-term future of the economy. But over the long term, there’s no reason to believe why great companies won’t soon return to their winning ways.
Investors with cash readily available should stay away from trying to time the market’s bottom. Instead, I’d strongly suggest putting that money to work today, while these discounted prices are available. Your future self will thank you before you know it.
