The Canadian stock market is doing all it can to end the year in positive territory. Despite three 5% runs in 2023, the S&P/TSX Composite Index is barely positive for the year. The index continues to trade below all-time highs that were set in 2022.
While the market as a whole has struggled to maintain momentum this year, many individual stocks have come roaring back in 2023. But that’s also after a year where the market was full of double-digit losses. So, even with the huge individual gains this year, there are still discounts to be had on the Canadian stock market.
I’ve reviewed two beaten-down TSX stocks that can offer investors loads of long-term value. We may not see discounts like these for a while longer, so I’d act fast if you’re interested in either one of these two companies.
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TSX stock #1: Brookfield Renewable Partners
There’s no question that the renewable energy sector has struggled since early 2021. The sector rebounded well from the pandemic-induced market crash in 2020, but it’s been mostly downhill since then.
At a market cap of $22 billion, Brookfield Renewable Partners (TSX: BEP.UN) is a Canadian leader in the renewable energy space. The company also boasts an international presence, which includes a wide-ranging portfolio of renewable energy assets.
If you’re looking for one all-around green energy stock to own, this should be it. Brookfield Renewable Partners provides instant, well-diversified exposure to the sector.
The stock has struggled as of late, presenting long-term investors with a great buying opportunity.
Excluding dividends, Shares are down more than 40% since the beginning of 2021. Still, the energy stock has just about doubled the returns of the Canadian stock market over the past five years.
One silver lining of the recent slide is that the dividend yield has shot up. At today’s stock price, the company’s dividend is yielding above 5%. Not bad for a dividend stock that owns a market-beating track record like that of Brookfield Renewable Partners.
TSX stock #2: Shopify
It’s been a wild ride over the past couple of years for the Canadian tech giant Shopify (TSX: SHOP). Shares are up just about 100% on the year, yet are still down more than 50% from all-time highs. That just goes to show how high the stock ran up in 2020 and 2021.
Despite the incredibly volatile price action as of late, the business itself remains strong. Shopify wasn’t immune to layoffs in 2023 but the business remains as focused as ever on continuing to drive growth. Profitability will eventually become a larger focus. But for the time being, this tech stock remains largely in growth mode.
With growth being a main focus for Shopify, I’d be prepared for more volatility. The upside there is the ability to earn market-crushing returns, which is exactly what Shopify has been doing in recent years. The stock is up a market-crushing 400% over the past five years.
Foolish bottom line
Don’t let the short-term noise keep you on the sidelines today. As long as you’re willing to be patient and hold for the long term, there’s no reason to keep you from investing — especially not with all of the bargains on the TSX right now.
