Ready to Invest With $5,000? 2 Stocks for January 2024

Canadian investors looking to put some money to work in the stock market next year should have these two stocks on their watch lists.

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After a strong push over the last two months of the year, the Canadian stock market has managed to end 2023 in positive territory. 

At many times throughout this year, it was anybody’s guess as to where the S&P/TSX Composite Index would be trading by late December. The constant volatility made it harder than it already is to predict any sort of short-term movements in the stock market. 

Fortunately, at least for the bulls, Canadian investors were able to head into the holidays with lots to cheer about.

Planning for 2024

With the year just about done with, it’s time to think about companies that you’d like to be buying in 2024. Even with a bounce-back year in 2023, there’s still no shortage of discounted stocks to choose from on the TSX today.

With that in mind, I’ve reviewed two top-quality companies that should be on your radar. Both picks also happen to be trading at discounted prices, too.

TSX stock #1: Shopify

Shopify (TSX:SHOP) shareholders were able to breathe a sigh of relief in 2023. Shares of the tech stock dropped more than 70% in 2022. However, they came roaring back this year with a return of more than 100%. Even with the surge this year, though, the stock continues to trade close to 50% below all-time highs.

Prospective Shopify investors should brace themselves for more volatility. That being said, there’s no denying this company’s long-term growth potential. 

If growth is what you’re after, Shopify should certainly be on your watch list next year. And with shares still trading at a significant discount, investors may want to act quickly in 2024 if they’re interested in loading up.

TSX stock #2: goeasy

goeasy (TSX:GSY) is another beaten-down growth stock that rebounded impressively well in 2023. 

Shares managed to sky-rocket 50% this year. But, similar to Shopify, goeasy continues to trade far below all-time highs.

As a consumer-facing financial services provider, it wasn’t all that surprising when goeasy saw demand take a hit as interest rates spiked. In the short term, as interest rates remain far higher than pre-pandemic prices, I’d bank on more volatility. But over the long term, there’s a serious value play here.

Shares of goeasy are down close to 30% from all-time highs set in late 2021. Still, the growth stock is up a market-crushing 350% over the past five years.

If you’ve got the time horizon that allows you to patiently wait for interest rates to begin decreasing, this is a discount you’ll want to take advantage of.

Foolish bottom line

Just because the S&P/TSX Composite Index is up more than 10% over the past two months doesn’t mean you should be waiting for the next pullback to be investing. The TSX continues to be loaded with top stocks trading at opportunistically discounted prices.

Shopify and goeasy are two companies that own market-beating track records that not many other Canadian stocks can compete with. 

As long as you can handle the volatility and are willing to be patient, these are two growth stocks you’d be wise to consider buying next year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nicholas Dobroruka has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

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