It’s not difficult to find discounted stocks on the S&P/TSX Composite Index right now. The TSX may be positive on the year, but there’s still no shortage of high-quality companies trading far below all-time highs.
If you’ve got a long-term time horizon, here are five top stocks that you can pick up at a discount today.
Canada’s largest airline has put together a strong start to the year but continues to trade below pre-pandemic levels. Shares are up close to 15% year to date but remain down more than 50% since the start of 2020.
Air Canada (TSX:AC) is one of the few airline stocks in North America that does have a history of outperforming the market’s returns. Even with the significant pullback in 2020, shares are still largely outperforming the market’s returns over the past decade.
Speaking of market-beating stocks, not many companies on the TSX can match goeasy’s (TSX:GSY) track record of growth returns over the past two decades.
The consumer-facing financial services provider has been hit with a slowdown in demand due to the increase in interest rates. That slowdown is partially to blame for the growth stock trading 50% below all-time highs that were set in late 2021.
WELL Health Technologies
WELL Health Technologies (TSX:WELL) shareholders have been on a wild ride since early 2020. As demand for the company’s telehealth services skyrocketed in the early days of the pandemic, so did the stock price. Shares went on to return more than 400% by the end of 2020.
The stock has jumped more than 60% this year but is still trading close to 50% below all-time highs set in 2021.
If you’re bullish on the long-term rise of telehealth, this is a bargain you won’t want to miss.
The sudden rise in remote work led to a massive increase in dependence on learning management software, which Docebo is a global provider of. As employees have since slowly returned to shared office spaces though, the stock has largely cooled off.
Those that believe remote work is here to stay should strongly consider picking up shares of Docebo while they remain more than 50% below all-time highs.
Last on my list is the stock trading at the largest discount of the five picks. Shares of the tech company Lightspeed Commerce (TSX:LSPD) are down close to 50% over the past 12 months and more than 80% below all-time highs from 2021.
After returning multi-bagger gains in the second half of 2020, shares are now back to just about the same price as they were when the company went public in 2019.
While the stock has been on a wild ride over the past three years, the business itself continues to move forward and grow. Lightspeed continues to expand both its product offering in the commerce space, as well as its international presence.
There’s a lot of growth potential in the coming decades for this still-young tech company. For investors that are willing to be patient, this is a high-growth company that’s worth taking a risk on.