2 Cheap TSX Stocks That Could Make You Rich

Keep these two cheap TSX stocks on your radar if you seek immense wealth growth potential for your self-directed portfolio.

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After a strong start to 2023, the S&P/TSX Composite Index rose by almost 7% by the end of January before volatility struck the market again. As of this writing, the Canadian benchmark index is down by 6.30% from its January 2023 high.

Most of the massive gains after the COVID-19 crash in 2020 were wiped out in 2022. Several TSX stocks soared to double-digit returns in January before declining well below all-time highs.

While the market continues to face headwinds, a few TSX stocks trading for deep discounts from historical highs can be excellent investments for immense growth potential. Arguably on the cusp of a strong rebound despite short-term market volatility anticipated ahead, a few growth stocks might be worth keeping on your radar right now.

Today, I will discuss two such stocks to add to your radar as potential investments for your self-directed portfolio.

Lightspeed Commerce

Lightspeed Commerce (TSX:LSPD) has fallen far from grace. The $3.19 billion market capitalization stock once looked like it would deliver stellar and rapid growth like Shopify stock. However, the tech sector meltdown did not spare the high-flying e-commerce and point-of-sale software provider giant.

As of this writing, Lightspeed Commerce stock trades for $21.07 per share — down by around 86% from its September 2021 all-time high.

After its impressive run in the first two years of joining the TSX in 2019, the tech stock’s massive gains until September 2021 have been wiped out. Despite trading for a deep discount on the stock market compared to its historical highs, Lightspeed has a solid business that remains in excellent shape.

While there may be more volatility in the short term, it has the potential to be a consistent, market-beating stock. Trading close to the price it debuted the TSX with, it might be a great deal for investors with a long investment horizon.

goeasy

goeasy (TSX:GSY) is, in relative terms, an under-the-radar stock that has not seen massive discounts like many others on the TSX over the last few years. Still, the $1.80 billion market capitalization alternative financial services company might be a great deal to consider for your self-directed portfolio right now. As of this writing, goeasy trades for $108.48 per share.

As a business, the specialty finance stock has delivered a stellar performance. Between 2017 and 2022, it more than doubled its revenue. In those five years, its normalized earnings per share increased by an impressive 285%. Down by almost 50% from its September 2021 all-time high, its deeply discounted valuation alone makes it an attractive investment to consider.

It has already grown rapidly in the past. Analysts anticipate more growth in the coming years, predicting a 20% revenue growth in 2023 and 15% in 2024. Boasting a 3.54% dividend yield at writing, it can be an excellent asset to consider adding to your portfolio.

Foolish takeaway

It is essential to remember that stock market investing is inherently risky, especially in growth stocks, during volatile market conditions.

If you have a well-balanced portfolio boasting plenty of defensive assets, investing in stocks facing short-term volatility but boasting long-term growth might be a good decision. Lightspeed Commerce stock and goeasy stock can be excellent assets to consider for this purpose.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

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