The opportunity to buy TSX stocks while they are dirt cheap isn’t one that happens very often. Although the market has been struggling for over a year now, and the economic environment continues to remain uncertain, there’s no telling when stocks could begin to recover.
Therefore, it’s essential that when these opportunities arise, investors take full advantage. Every now and then, a handful of stocks will trade cheaply. However, when stocks trade below their historic values during a bull market, there are often reasons why they are so cheap.
It’s not until the entire market has been selling off that investors have the opportunity to buy the very best stocks in Canada while they offer a significant discount. Therefore, while TSX stocks are still dirt cheap, and investors have the opportunity to buy stocks now that they can hold for years to come, here are three of the best bargains to consider today.
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A top healthcare tech stock
So far, in 2022 alone, WELL Health Technologies (TSX:WELL) has already gained an incredible 70% as it’s begun to recover, compared to the TSX, which is up less than 5% since the start of the year. Despite this impressive recovery rally, though, the high-potential growth stock is still trading dirt cheap, making it one of the best stocks to buy on the TSX today.
WELL is not only a high-quality investment because of its significant growth potential and track record of consistently beating expectations. The fact that in this uncertain economy it operates in the healthcare sector makes it considerably defensive.
WELL is known for its high-potential and high-growth portfolio of tech businesses that operate in the healthcare sector. They include telehealth businesses and digital health apps, as well as its electronic medical records business. However, it’s also the largest owner-operator of medical outpatient clinics across Canada.
Therefore, it’s well-diversified but still has tremendous growth potential. So, it’s no surprise that the stock has been rallying so consistently to start the year.
Even after its rally of over 70% to start the year, though, WELL still trades at a forward price-to-sales ratio of just 1.7 times, which is well below its three-year average of 5.6 times.
Therefore, while you can buy this high-quality TSX stock at such a cheap valuation, it’s one of the best investments to consider making today.
A dirt-cheap entertainment stock that’s beginning to rally
In addition to WELL, another high-potential TSX stock you’ll want to buy now while it’s still cheap is Cineplex (TSX:CGX).
Cineplex stock is still trying to recover from the pandemic, which began to impact it more than three years ago. And while almost every other stock has seen a recovery, Cineplex now finally looks like it’s on the brink of a significant rally. The current price is giving investors one last opportunity to buy the TSX stock while it’s this cheap.
With no restrictions on capacity anymore, and 2023 expected to be a year when Hollywood production recovers, there’s a tonne of opportunity for Cineplex’s box office numbers to return to 2019 capacity levels.
Furthermore, considering that Cineplex stock still trades roughly 70% lower than where it was before the pandemic, the stock is unbelievably cheap, showing why it has so much potential to rally.
A top TSX retail stock to buy while it’s still cheap
Lastly, Canadian Tire (TSX:CTC.A) is a business that’s shown just how impressive it is over the last few years. Yet, despite this strong performance, the TSX stock has been ultra-cheap as of late.
Like WELL and Cineplex, it has outperformed the TSX to start the year, yet still trades cheap enough to offer an excellent buying opportunity for investors today.
Even with a potential recession on the horizon, though, Canadian Tire has proven it can continue to drive sales growth at its locations. This growth is aided by its impressive loyalty program and use of data analytics.
Today, the TSX stock trades at a forward price-to-earnings ratio of just 10.1 times, below its five-year average of 11.2 times, showing just how cheap it really is.
Therefore, if you’re looking for a high-quality stock to buy undervalued that you can hold for years, Canadian Tire is one of the best investments to consider now.
