If investors have learned anything over the past few years, it is that it’s impossible to predict where the economy will be in six months or even a year from now. So although the economic environment continues to see major headwinds, investors need to take advantage of the opportunity to buy top stocks at a bargain today before the next bull run materializes.
The pandemic was one example. Nobody could have predicted the pandemic or how it would impact the economy. Even the rapid rebound from the initial pandemic selloff was somewhat surprising.
Soon after, the economy seemed to be recovering well until inflation started to pick up and surged to nearly 10% in North America. This caused interest rates to rapidly rise from the ultra-low level of 0.5% to 5% or more today.
Yet as the economy has consistently worsened, many expected a recession by now, which has yet to materialize. All of this has happened in such a short period of time, and just a few years ago, would have been impossible to predict.
Therefore, while you have top Canadian stocks trading at a bargain, it’s essential to take advantage of the low prices as nobody knows how soon the next bull market will materialize. So, if you’re looking for top bargain stocks to buy now, here are three of the best to consider.
One of the top recovery stocks on the market that still trades at a bargain
With Cineplex (TSX:CGX) still trading well below its pre-pandemic share price of $34 and now recovering rapidly, it’s easily one of the top bargains stocks to buy now.
Consumers continue to seek out-of-home entertainment post-pandemic, and Cineplex is already seeing a strong rebound in both theatre and entertainment venue attendance.
Furthermore, as Hollywood experiences major delays as a result of the pandemic, a backlog of blockbuster movies being released this year is also driving increased foot traffic and revenues for Cineplex.
For example, Cineplex reported 2023 second quarter (April through June) box office revenue of $164 million, achieving 87% of what it did in the same quarter of 2019, showing a strong recovery.
But in July, box office revenues were more than $86 million, its highest July box office of all time and its second-best month ever. Plus, $86 million in July is more than 12% higher than what Cineplex earned in July of 2019. And neither Barbie nor Oppenheimer were even released until July 21.
Therefore, Cineplex has a tonne of potential to see a significant recovery this year and begin to focus on future growth. So while it trades at at just 9.2 times its estimated 2024 earnings, it’s one of the top bargain stocks to buy now.
A top long-term growth stock
Another stock trading unbelievably cheap to consider buying is Cargojet (TSX:CJT), a top growth stock for years now that continues to offer significant long-term potential thanks to the e-commerce boom.
As an air cargo service provider, Cargojet is well positioned to benefit from the surge in e-commerce. As online shopping continues to grow, the demand for quick and efficient delivery, especially overnight shipping, is likely to increase, benefiting Cargojet’s operations.
Cargojet’s exposure to e-commerce, though, is actually the main reason why Cargojet’s stock has struggled in the near term. With a weakening economy, discretionary e-commerce spending has been slowing down.
Over the medium term, though, as the economy naturally recovers, the popularity of e-commerce will continue to increase, and Cargojet can benefit significantly from the years-long shift in the retail sector.
Therefore, while it trades at the bottom of its 52-week range, it’s one of the top bargain stocks to buy now.
A top Canadian REIT
In addition to Cargojet and Cineplex, Morguard North American Residential REIT (TSX:MRG.UN) is another top bargain stock to buy now.
The REIT owns a diversified portfolio of residential properties across Canada and the United States. This mix helps to mitigate risks in addition to increasing growth potential with different opportunities available in different geographic regions.
Plus, Morguard has been trading ultra-cheap. Right now, it trades at just 0.45 times its estimated net asset value from analysts. Therefore, while it trades at such a significant bargain, it’s one of the best stocks to buy now.
