It’s been a wild ride for Canadian investors this year. The S&P/TSX Composite Index has had no shortage of volatility in 2023. However, the index is positive for the year.
In the short term, some investors may understandably be hesitant to put money into the stock market today. Those with a long-term time horizon, though, should be on the lookout. The volatility this year has created a ton of buying opportunities for investors who are willing to be patient.
With that in mind, I’ve reviewed two TSX stocks that are trading at must-buy prices. Both companies are loaded with long-term growth potential but have struggled as of late.
If you’re willing to be patient, these two picks could offer up some serious value over the long term.
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TSX stock #1: goeasy
This consumer-facing financial services provider has taken a massive hit from the spike in interest rates. goeasy (TSX:GSY) has seen demand slow, as interest rates have shot up, which, unsurprisingly, has negatively impacted the stock price.
Shares are down 40% from all-time highs that were set in late 2021. Still, the growth stock’s return of 215% over the past five years is good enough to smash the returns of the broader Canadian stock market, which, excluding dividends, has returned less than 40% in the same time span.
This is a rare buying opportunity for a growth stock that has a good of a market-beating track record as you’ll find on the TSX. Don’t miss your chance to load up at these discounted prices.
TSX stock #2: Northland Power
It’s not hard to find a discounted stock in the renewable energy space right now. The sector as a whole has been on the decline since early 2021.
Shares of Northland Power (TSX:NPI) are down 40% in 2023 alone and are currently trading more than 50% below all-time highs. Excluding dividends, the recent decline has the energy stock just about flat over the past five years.
The long-term growth potential of the renewable energy sector is clearly there. What investors are trying to figure out now is when that will translate into actual stock growth again.
Following the COVID-19 market crash, renewable energy stocks soared. And perhaps too high, too quickly. You could certainly argue that the sudden surge in the back half of 2020 is at least partially to blame for the sector-wide decline that began in early 2021.
If you’ve got a long-term time horizon and are bullish on the rise of renewable energy, now is the time to be loading up. And while you wait for Northland Power to get back to all-time highs, there’s a juicy 5% dividend yield to enjoy.
Foolish bottom line
While many stocks have rebounded well in 2023, there are still plenty of undervalued companies to take advantage of on the TSX.
goeasy and Northland Power are two perfect examples of companies that own impressive market-beating track records and that have recently been hit with a short-term headwind. It may take some time for the two stocks to return to all-time highs, but there shouldn’t be much doubt in their ability to do so.
