The stock market selloff continues in 2023, as fears about rapidly rising interest rates and high inflation leading to a recession in the short term are keeping investors on their toes. As a result, many TSX stocks with solid long-term growth potential have also seen sharp declines in recent months. While the ongoing market selloff may look worrisome at first glance, buying some beaten-down, fundamentally strong stocks amid this selloff can minimize your overall portfolio risk and increase your chances of receiving greater returns in the long run.
In this article, I’ll highlight two of the best TSX stocks you can buy today with an investment of as little as $2,000.
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BlackBerry stock
Although BlackBerry (TSX: BB) stock, with its nearly 11% year-to-date gains, continues to outperform the broader market by a good margin, it has seen big declines in the latest round of selloffs in growth stocks. After witnessing 31% value erosion in the last month, BB stock currently trades at $4.89 per share and has a market capitalization of $2.9 billion.
BlackBerry’s business can primarily be divided into two major operating segments: cybersecurity and IoT (Internet of Things). While the company still makes most of its revenue from its cybersecurity segment, the contribution of its IoT segment in its financial growth is expected to surge significantly in the coming years as it continues to focus on developing advanced technological solutions for the automotive industry.
In the last year, its cybersecurity segment revenue growth has been disappointing due mainly to temporary macroeconomic challenges, which are forcing organizations globally to minimize their expenditure. Nonetheless, the demand for quality enterprise cybersecurity solutions is still expected to rocket in the long run with the help of the ongoing digital transformation trend. Considering that, you can expect the financial growth in both BlackBerry’s business segments to accelerate in the long run.
Interestingly, on October 4, BlackBerry announced its intentions to split its business segments into two separate business entities and pursue a subsidiary initial public offering for its IoT business unit. While further details about its impact on BB’s existing shareholders’ holdings are still awaited, you can consider buying BlackBerry stock ahead of the planned separation to take advantage of recent declines in its share prices.
Lightspeed stock
Lightspeed Commerce (TSX: LSPD) is another attractive stock to consider on the TSX today, especially after its recent big losses. LSPD stock has seen an 11% value erosion in the last month to currently trade at $19.60 per share with a market cap of $3 billion. This Montréal-based tech company offers a one-stop commerce platform to merchants worldwide. Besides other benefits, its platform helps merchants unify their online and physical operations.
Despite the challenging macroeconomic environment, Lightspeed is continuing to maintain a strong top-line growth. In the last two quarters combined, its total revenue rose 22.7% year over year to US$393.3 million. The company’s continued focus on product innovation to simplify complex business processes for merchants on its platform could be one of the key factors keeping the demand for its services high, despite adverse economic conditions.
As Lightspeed continues to expand its international market presence, you can expect its financial growth trends to improve further in the years to come, which should help its share prices soar.
