It’s been a bumpy ride for investors in 2023. Despite the S&P/TSX Composite Index being close to flat on the year, there have been three 5% surges by the index in 2023. Each time, though, the market has quickly returned the gains.
Investors with short-term time horizons understandably may be hesitant to invest today. After the volatility we’ve seen over the past 12 months, it’s incredibly difficult to predict where the market will be at the end of this year.
Long-term investors, on the other hand, have the luxury of having time on their side. And with the TSX full of top-quality stocks trading at bargain prices, now could be an incredibly opportunistic time to be putting money in the stock market, as long as you’re willing to be patient.
With that in mind, I’ve reviewed three very different companies that are worth a hard look at. One of the few things that all three stocks have in common is that they’re trading at discounts.
Descartes Systems
Of the three companies on this list, Descartes Systems (TSX:DSG) is trading closest to all-time highs. Shares are currently down just over 10% from all-time highs that were set in late 2021.
In comparison to many of its tech peers, Descartes Systems has been incredibly resilient over the past couple of years. Shares may be down 10% since late 2021, but they are also up 10% over the past 12 months and up more than 150% over the past five years.
If you’re looking for an under-the-radar tech stock, Descartes Systems is the perfect choice. The company is primed for many more years of market-beating returns.
Air Canada
Canada’s largest airline has had lots of trouble returning anywhere close to pre-pandemic prices. Shares of Air Canada (TSX:AC) are down close to 70% since the beginning of 2020, which puts the stock at a loss of 30% over the past five years.
One reason to have Air Canada on your watch list right now is that it is one of the few airline stocks that has been a consistent market beater in the past. Admittedly, Air Canada has a very cyclical track record. However, those who have been patient over the past couple of decades have been well rewarded.
Investors who are in it for the long haul won’t want to miss out on this buying opportunity.
Bank of Nova Scotia
Growth investors may want to consider loading up on one of the major Canadian banks at today’s prices. The high yields could help balance out some of the potential volatility in the coming months.
At today’s stock price, Bank of Nova Scotia (TSX:BNS) is the highest-yielding Canadian bank and one of only two banks yielding above a whopping 7%.
The dividend alone is certainly enough of a reason to have Bank of Nova Scotia on your watch list. Another reason would be the bank’s international presence. With a growing footprint in the U.S. and already a considerable market position in Latin America, Bank of Nova Scotia offers its shareholders far more than just Canadian exposure.
At a dividend yield above 7%, it’s hard to make a case against having this bank stock on your watch list.
