3 Stocks to Buy While They Are on Sale

Looking for value on the TSX? Here are three Canadian stocks trading at discounted prices.

| More on:
edit Sale sign, value, discount

Image source: Getty Images

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.

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 and Lightspeed Commerce. The Motley Fool recommends Brookfield Renewable Partners and Lightspeed Commerce. The Motley Fool has a disclosure policy.

More on Investing

bulb idea thinking
Stocks for Beginners

3 No-Brainer Stocks to Buy Now for Less Than $1,000

If you're looking for companies bound for more greatness, these three no-brainer stocks are easy buys, no matter what the…

Read more »

Target. Stand out from the crowd
Investing

Finning International: A Reasonable Buy Here

Finning International is a cyclical dividend stock that offers decent long-term returns potential of north of 10%.

Read more »

Dollar symbol and Canadian flag on keyboard
Stocks for Beginners

TFSA: 4 Canadian Stocks to Buy and Hold Forever

Here are four stocks that you can buy and hold for decades in your TFSA.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Tuesday, April 23

Important economic data from the United States could keep TSX stocks volatile this morning as falling metal prices pressure the…

Read more »

Dividend Stocks

Buy 3,000 Shares of This Super Dividend Stock For $3,300/Year in Passive Income

Are you looking for a super dividend stock to buy now and generate a whopping passive-income stream? Here's an option…

Read more »

Question marks in a pile
Dividend Stocks

Where Will Brookfield Infrastructure Partners Stock Be in 5 Years?

BIP (TSX:BIP) stock fell dramatically after year-end earnings, but there could be momentum in the future with more acquisitions on…

Read more »

Utility, wind power
Dividend Stocks

So You Own Algonquin Stock: Is It Still a Good Investment?

Should you buy Algonquin for its big dividend? Looking forward, the utility is making a lot of changes.

Read more »

Big Bitcoin logo.
Investing

2 Cheap Stocks to Add to Your TFSA Before They Get Expensive

If you want to buy the dip and sell the rally, these two TSX stocks are a bargain you don’t…

Read more »