2 Bargain-Bin Stocks That Could Light Up Your Retirement Savings

Consider Canada Goose (TSX:GOOS) and another Canadian retail value play going into August 2023.

| More on:
sale discount best price

Image source: Getty Images

The TSX Index has really heated up for the summer, with the broader TSX Index now up around 6% from its June 2023 lows. Indeed, there are few, if any, signs of froth on this side of the border, even as the artificial intelligence (AI) rally down south begins to broaden out a bit. Just because the bull seems to be back in charge does not mean it’s reckless to be a buyer for stocks right here.

Have stocks become just a tad overbought over the near term? Definitely. However, if you pick and choose your spots carefully, I do not think long-term investors need to worry about the next market correction. At the end of the day, market corrections are natural, and they should be viewed not only as great buying opportunities but as part of a healthy bull market. Indeed, I’d be more afraid to buy stocks if a market rally has gone on more than a year without so much as a 10% pullback!

Sure, you could wait for the next inevitable pullback. But there’s always a risk of missing out on the market’s next leg higher, which may be far larger than the magnitude of the next correction. That’s why I’d play both sides of the coin as markets continue to rally. Perhaps buying value plays today is a wise move, as long as you have the liquidity to buy more at a later date, potentially after the next market correction.

In this piece, we’ll check out two intriguing value stocks that could act as great bets for your long-term retirement. The following names have fallen under quite a bit of pressure of late. Even as the U.S. bull market roared out of the gate, the following names have still been in the hands of the bear.

Both firms have endured tough times, but with solid long-term fundamentals, I think each name could be positioned for an epic rally at some point down the road.


Aritzia (TSX:ATZ) stock’s chart went from ugly to downright hideous following the latest post-earnings plunge. Shares of the women’s fashion retailer are fresh off multi-year lows and are down more than 55% from their all-time highs. Indeed, the spending boom of 2021 helped propel Aritzia to new heights. With a recession staring down the Canadian economy, and with inflation and other pressures hurting demand for discretionary goods, it shouldn’t be such a shocker to see Aritzia down and out at this juncture.

The bust has been painful, but little has changed about the long-term story. I still like the growth story and think it can recover from this turbulent macro environment. At 16.69 times trailing price to earnings (29.6 times forward), Aritzia certainly looks cheap as a growth play. With lower expectations in place, and mounting negative momentum, I view ATZ as a value play that may be worth nibbling on the way down.

Canada Goose

Canada Goose (TSX:GOOS) is another retailer that’s flying lower amid a challenging macro environment. The brand remains impressive, but with few major catalysts in sight, GOOS stock could remain at these depths (low $20 levels) for a longer duration.

Now, Canada Goose has pushed into new product categories. But new offerings or not, the luxury parka maker is still a discretionary stock and will feel the cool breeze of economic sluggishness.

Down nearly 75% from its high, I view GOOS stock as a deep-value option for fans of the brand.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy.

More on Investing

A person builds a rock tower on a beach.
Stocks for Beginners

Here Is the Best Way to Start Investing With $1,000 Right Now

Let's get beyond the basics with these tips on how to turn your basic portfolio into booming with even just…

Read more »

Hand arranging wood block stacking as step stair with arrow up.

1 Ridiculously Undervalued Growth Stock Down 23% to Buy Hand Over Fist

OpenText (TSX:OTEX) stock could be one of the best buys out there, with the company down 23% in the last…

Read more »

Hands holding trophy cup on sky background
Dividend Stocks

3 of the Top Dividend Stocks in Canada

Top TSX dividend stocks are still on sale.

Read more »

Index funds

Got $500 to Invest in Stocks? Put it in This Index Fund

Here's why I like this index fund.

Read more »

A colourful firework display
Tech Stocks

3 TFSA Stock Picks With Explosive Potential

Want some explosive growth in your TFSA. These small-cap stocks have risks, but they could also have some massive reward.

Read more »

Dollar symbol and Canadian flag on keyboard

1 Canadian Stock to Buy and Hold Forever in Your TFSA

Shopify (TSX:SHOP) stock is back on the retreat, but it's still a top tech buy for TFSA investors seeking value…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Thursday, July 25

The U.S. GDP quarterly growth numbers will remain on TSX investors’ radar today as they continue to assess the Bank…

Read more »

Family relationship with bond and care

Retiring Soon? Add These Dividend-Paying Stocks to Your Portfolio

Here are two of the best TSX dividend stocks you can add to your retirement portfolio today and hold for…

Read more »