It’s not difficult to find a top-quality TSX stock trading at a discount today. The volatility in the stock market this year has created all kinds of opportunities for long-term investors.
In the short term, it’s anybody’s guess as to how the stock market will fare. At this rate, ending the year positive is certainly a possibility. But with all of the market swings we’ve witnessed in 2023, good luck trying to predict where the S&P/TSX Composite Index will be trading on December 31.
Despite the volatile market conditions, now is not necessarily the time to be on the sidelines. If you’ve got a time horizon that will allow you to be patient, now could be an excellent time to be putting money into the Canadian stock market.
I’ve put together a basket of three TSX stocks that all have something a little different to offer investors. Whether you’re looking for growth, dependability, or passive income, this basket has you covered.
Growth investors in search of multi-bagger gains should have this beaten-down tech stock on their radar.
Shares of Lightspeed Commerce (TSX:LSPD) are down a whopping 85% from all-time highs set in late 2021. The stock has rallied this year, up 15% year to date, but continues to trade well below pre-pandemic levels.
Alongside many of its peers, Lightspeed has been hit with slowing revenue growth and employee layoffs over the past couple of years. Those two factors can at least partially explain the stock’s poor performance since late 2021. There’s also a strong case to be made that the stock got far too ahead of itself following the COVID-19 market crash.
Shares may still be down significantly from all-time highs but at least we have seen them stabilize, and even perhaps bottom out.
If you’re looking for growth, there’s plenty of long-term upside here.
Descartes Systems (TSX:DSG) is another high-growth tech stock to consider, but this pick may offer investors a little more peace of mind. The stock has endured far less volatility than Lightspeed in recent years and is trading at just about all-time highs right now.
Shares are up a market-crushing 200% over the past five years. In comparison, the broader Canadian stock market is up less than 40%, excluding dividends.
You could argue that Lightspeed offers more long-term growth potential, but there’s no denying Descartes Systems’s ability to consistently deliver market-beating returns.
Bank of Nova Scotia
Investors who plan on loading up on stocks like Lightspeed and Descartes Systems would be wise to think about how they’ll balance out the risk and volatility that come from owning high-growth companies. A Canadian bank is a perfect way to do exactly that.
At today’s stock price, Bank of Nova Scotia’s (TSX:BNS) 7% dividend yield ranks it as the highest amongst the Big Five. A yield that high can be a huge passive-income generator, which can go a long way during volatile market conditions.
There’s no question that owning shares of Bank of Nova Scotia will be far less exciting than owning high-growth tech companies. When it comes to long-term investing, though, there’s absolutely nothing wrong with boring.