Year to date, the Canadian stock market might be flat, but it continues to trade below all-time highs. The S&P/TSX Composite Index is down close to 10% from highs set in early 2022. The market has been on several promising runs this year, but each time, it has quickly returned the gains. It’s been yet again another volatile year for investors.
Volatility in the short term can be painful to endure, but it can also create opportunities for the long term. There are plenty of top-quality TSX stocks that are trading far below all-time highs that were set back in 2021.
I’ve reviewed three discounted companies that deserve serious consideration for anyone that’s willing to be patient.
A couple of these picks are already showing signs of momentum. Investors may not want to wait around too long as we might not see discounts like this for a while longer.
Stock #1: Brookfield Renewable Partners
The renewable energy sector has had a rough go for the past year and a half. Leaders across the space have been on a gradual decline since early 2021, including Brookfield Renewable Partners (TSX: BEP.UN).
Shares of Brookfield Renewable Partners started off hot in 2023 but have since dropped back down to close to where they began the year. Today, the energy stock is down more than 30% below all-time highs. Still, shares are up 75% over the past five years, which is good enough for more than doubling the Canadian market’s return. That’s not even including dividends, either.
With today’s reduced price, Brookfield Renewable Partners’s dividend has jumped to more than 5%. At least while investors wait for this discounted energy stock to rebound, there’s a juicy dividend to benefit from.
Stock #2: goeasy
With shares up close to 40% since May, we may have already seen goeasy (TSX: GSY) bottom out. The growth stock still has another 70% to go before returning to all-time highs, but we may see it there sooner rather than later.
The consumer-facing financial services provider has taken a short-term hit during this high-interest-rate environment. Interest rates today are still far higher than pre-pandemic levels, but goesy’s recent push may be driven by the forward-looking stock market thinking that interest rates may have at least peaked.
If your portfolio is in need of growth, now would be a wise time to have this dependable market-beating company on your watch list.
Stock #3: Lightspeed Commerce
The tech sector has been amongst the hardest hit since late 2021. Lightspeed Commerce (TSX: LSPD) is far from the only tech stock on the TSX trading at a massive discount today.
In fairness, Lightspeed’s recent selloff can be at least partly attributed to the tech company’s monster bull run in the early days of the pandemic. By the time the tech stock peaked in late 2021, shares were up more than 300% since the start of 2020.
Putting the extreme levels of volatility aside, the business itself continues to have huge long-term growth potential. Throughout the pandemic, management remained focused on growing both the company’s product offering and international presence.
If you can handle the volatility, this high-growth tech stock has serious multi-bagger growth potential.
