The new year has come and it’s time to start looking for some deals. Those deals consider the safest, best stocks on the TSX today, with a practically guaranteed method of climbing back to superior status.
One such place to look is oversold stocks. These are companies that investors have dropped like a hot potato. Ones that also then have a chance to come soaring back up. Not all are equal however, which is why today I’m going to focus on the three best options this new year.
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Kinaxis
Software-as-a-Service (SaaS) company Kinaxis (TSX: KXS) has to be one of the best options out there for those seeking an oversold stock. The company trades at just 24 on the relative strength index, putting it well within oversold territory.
What’s more, the company is a strong supply-chain management company, which focuses on enterprise-level companies. It also uses a Rapid Response platform to help companies identify problems before they arise, including artificial intelligence use.
Yet shares are still down 6% in the last year, sinking by a large amount in the last six months. Yet now, this could be one of the best long-term opportunities for those willing to wait it out. Kinaxis stock will come back, it will just be a matter of when.
WSP Global
Another company that’s shrunk in the last few months is WSP Global (TSX: WSP). The consulting firm has seen lower investment likely because of higher inflation and interest rates creating less opportunity for investment. However, the company has remained quite strong.
In fact, it has managed to increase earnings each quarter, beating out estimates over and over. Yet shares have dropped by 5% over the last three months. There has been some up-and-down movement, but overall the stock has remained quite stable over a long period of time.
Therefore, now could be the best time to pick up the stock for long-term growth. Especially as we enter a bull market in the future. After all, lower interest rates will lead to higher investment by the company. This should certainly provide higher returns for today’s investor.
Hydro One
Last but not least, I would also consider a utility stock. Now, on the one hand, Hydro One (TSX: H) has been trading near 52-week highs. But I would still consider this a stock that’s really only in the beginning phase of its lifelong investment strategy.
Consider other utility stocks and you’ll see many have been on the market for decades, some for over 50 years! Which is why Hydro One stock could certainly have even more growth in the future, and now is the time to buy before it gets there.
So despite trading at 21.8 times earnings, a little higher than its peers, I would still consider it an excellent long-term buy. One that really should only rise higher as we continue through 2024. Plus, you can still grab a 3% dividend yield, which could end up being yet another Dividend King, as is the case with two other utility peers.
