Going back to 2022, the Canadian stock market has shown signs of hope. Yet the market as a whole continues to struggle to return to all-time highs. The S&P/TSX Composite Index was last at its peak price in early 2022.
Year to date, the Canadian stock market is just about positive, but up more than 5% since late October. The market is riding a high after many companies across North America announced promising quarterly results over the past couple of weeks.
Long-term mindset
Interest rates and inflation both remain far above pre-pandemic levels, there’s no question there. However, I’d argue that there’s more hope than ever right now that both of those two numbers have peaked.
Even if we’re not out of the woods yet, the beauty of long-term investing is that you don’t need to time the market perfectly. What’s much more important is choosing the right companies to invest in. Companies that you’re willing to hold through thick and thin and that offer a certain amount of growth opportunity.
With that, I’ve reviewed two top Canadian stocks that are trading at must-buy prices. And with both stocks starting to show signs of life as of late, who knows when the next time will be that we’ll see discounts like this.
TSX stock #1: goeasy
goeasy (TSX:GSY) might be one of the more under-the-radar growth stocks on the TSX.
Not many companies can match goeasy’s track record of market-crushing gains in recent years. Even with shares down 40% from all-time highs, the stock is still up more than 200% over the past five years.
As a consumer-facing financial services provider, it hasn’t been surprising to see demand slow in today’s high-interest-rate environment. But that’s exactly what makes goeasy such an intriguing buy today.
Investors have not had many chances to scoop up shares of this top growth stock at a discount over the past decade.
If you’re betting that we’ve seen interest rates peak, now’s the time to load up on shares of goeasy.
TSX stock #2: Shopify
Shopify (TSX:SHOP) has been one of the hottest stocks on the TSX this month. Shares are up a whopping 40% in November alone and close to 100% on the year. Still, the tech stock continues to trade more than 50% below all-time highs that were set in late 2021.
What’s promising to see about Shopify’s stock price is that it’s finally trading above pre-pandemic prices. The stock took a massive hit in 2022, but it was also coming off an incredible surge following the COVID-19 market crash. A significant pullback was going to happen at some point, and that certainly happened last year.
Investors who are interested in owning one world’s top tech companies should act fast. At this rate, we may see a new all-time high sooner than many might have thought.
Foolish bottom line
Don’t let the fact that the market is red hot right now keep you on the sidelines. There are still plenty of top-quality stocks on the TSX trading at rare discounts, such as goeasy and Shopify.
