2 Big-Name Canadian Stocks With Major Upside Today

Air Canada (TSX:AC) and another stock that could have major upside from here.

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The recent volatility in broader markets is actually a good thing for young investors with cash sitting on the sidelines. Indeed, you want to buy stocks at lower prices, rather than pay up in the midst of a hot bull run. Unquestionably, 2023 has been a hot year for stocks.

What the last quarter holds is a mystery. In any case, investors should be happy that stocks are cooling off, so they’re able to get more for their money. If stocks continue to sag from here through the end of the year, and perhaps into the first few months of 2024, investors should have a plan to take advantage of the lower prices over time.

Today, there are a few Canadian stocks that I view as already battered such that a broader market pullback may be less impactful. We’re talking about companies whose shares have seen the band-aid ripped off already. Though it’s impossible to tell if shares of any firm have bottomed, I do like the risk/reward in the following names for young investors who are looking to achieve solid capital gains over the next 24 months.

Without further ado, let’s take a closer look at Canadian airline Air Canada (TSX:AC) and battered movie theatre firm Cineplex (TSX:CGX) to see which recovery play is the better bet.

Air Canada

Air Canada stock’s descent has been ongoing since the COVID pandemic rattled markets more than three years ago. Indeed, one would have thought Air Canada would have been fully recovered by now. This simply hasn’t been the case. Looking ahead, I think the future looks bright for Canada’s top airline as it moves on from the COVID crisis.

Things have been looking up of late, with shares up more than 17% year to date. What’s been behind the upward move? International air travel is flying higher again. And that’s helped Air Canada’s latest quarterly profits leave the tarmac. Ticket prices have steadily crept higher, and the future finally looks bright for the airline as it makes moves to trim away at various costs. I think AC stock is a bargain at $22 and change. Many analysts covering the name seem to agree. Cameron Doerksen is one of many analysts who view the firm favourably.

Cineplex

Cineplex is another Canadian company that’s still well off its pre-pandemic highs. And though the stock is sagging again as part of an awful August for stocks, I do think the dip is buyable.

Hollywood strikes are another thorn in the side of the cinema giant. But beyond that, I think Cineplex could be in a spot to claw back a bit of market share from streamers. Barbenheimer weekend (the weekend that saw the launch of Oppenheimer and Barbie) showed us that people are still willing to go see a movie. There’s really nothing like getting dressed in pink while going to see a film on the big screen!

For now, CGX stock could wane as Hollywood strikes take a toll. At $8 and change, though, one has to draw the line somewhere.

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 recommends Cineplex. The Motley Fool has a disclosure policy.

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