Volatile Market? Carpe Diem With These Stock Deals Today

A little volatility is no reason to be on the sidelines. Here are two top TSX stocks that you can feel confident buying right now.

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There was no shortage of volatility in the Canadian stock market last year. And through the first three months of 2023, not much has changed. 

The S&P/TSX Composite Index is positive in 2023, but that’s not without a drop of close to 7% earlier in the year. The index got back on track towards the end of March, but I’m bracing for more volatility, at least in the short term.

Both interest rate hikes and inflation have shown signs of cooling off in recent months, which partially explains the strong start to the year for the stock market. But still, with no clear direction on if we’re headed toward a recession or not, I’m not banking on smooth sailing in the stock market just yet.

Short-term bearish; long-term bullish

Recession or not, it shouldn’t necessarily have an impact on a long-term investor’s strategy. At least it’s certainly not impacting how I’ve been putting my money to work dating back to early 2022. My focus continues to remain on buying top-quality businesses and holding for the long term.

With that, I’ve reviewed two companies that long-term investors would be wise to have on their watch lists today. Both stocks are trading at rare discounts that might not be available to take advantage of for much longer. 

If you’ve got the time horizon that allows you to be patient, these are two solid companies that are worth a look right now.

TSX stock #1: goeasy

At a market cap of not much more than $1 billion, goeasy (TSX:GSY) can easily fly under the radar for growth investors. The stock has been one of the top performers on the TSX over the past decade but receives little fanfare.

goeasy is a consumer-facing financial services provider. The company provides its Canadian customers with all kinds of different loans. 

The high-interest-rate environment has understandably taken a hit on demand for goeasy. As borrowing money has become considerably more expensive compared to pre-pandemic times, goeasy stock has taken a rare hit.

Shares are down more than 50% from all-time highs set in late 2021. Still, the growth stock has returned a market-crushing 150% over the past five years.

This is not a stock that has gone on sale often over the past 10 years, and especially not like this. As interest rates begin to come back down, goeasy should begin seeing demand return, along with market-beating returns.

TSX stock #2: Brookfield Renewable Partners

The entire renewable energy sector has been on the decline going back to early 2021. As a result, it’s not difficult to find a beaten-down green energy stock on the TSX today. And for long-term investors, that’s an opportunity you don’t want to miss out on.

Brookfield Renewable Partners (TSX:BEP.UN) is not only a Canadian leader in the growing space, but a global one, too. The company has operations spread across the globe, including a range of different clean energy solutions.

Shares are down more than 30% since early 2021. However, the energy stock has already returned more than 15% this year, and that’s not even including its impressive dividend that’s yielding more than 4% today.

If you’ve been thinking of adding a renewable energy stock or two to your portfolio, now is the time.

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 Nicholas Dobroruka has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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