Despite the fact that inflation has come under control in North America and interest rates are looking like they’ve peaked, there is still a tonne of uncertainty in the markets today, creating several opportunities for long-term investors to buy high-quality stocks right now while they are so cheap.
Although some stocks have begun to recover, which is a good sign, the uncertainty amongst investors, analysts and even policymakers continues to remain elevated.
The main stocks that have already recovered meaningfully, or the ones which were hardly impacted at all over the last years are the companies that are proving they can continue to execute despite the macroeconomic headwinds.
However, while you may have missed out on some opportunities already, there are still plenty of high-quality stocks for long-term investors to buy right now that are unbelievably cheap.
Typically, if you want to buy stocks that are absurdly cheap, you need to look for lesser-known stocks or higher-risk companies. It’s not often that two high-quality and well-known businesses in Canada are trading well undervalued.
So, if you’ve got cash you’re looking to invest, here are two of the best long-term stocks to buy right now.
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A top Canadian telecom stock
Rogers Communications (TSX: RCI.B) is one of the best-known companies in Canada. And because it’s a massive telecom stock, it’s also a popular investment for Canadians.
After its acquisition of Shaw Communications which closed less than a year ago, Rogers has a tonne of potential both to expand its operations and find cost savings — two things it’s already begun to do.
Yet despite this potential, Rogers continues to be unbelievably cheap, making it one of the best stocks long-term investors can buy right now.
In 2023, its revenue already jumped by over 25%, and its normalized earnings per share (EPS) increased by more than 21% year over year. And over each of the next two years, investors expect Rogers’s normalized EPS to increase by another 6.6% and 11.9%, respectively.
Despite this impressive growth already and its potential going forward, the stock has continued to trade range-bound, between $50 and $70, for essentially the last five years.
So, as the acquisition of Shaw unlocks growth opportunities and Rogers continues to boost its profitability in the coming quarters, the stock should start to see a meaningful rally.
Therefore, while you can still buy the stock absurdly cheap, it’s certainly one of the best long-term investments to consider right now.
Currently, all 10 analysts that cover Rogers give it a buy rating. And on top of that, its average analyst target price of nearly $78 is more than 25% higher than where Rogers trades today.
That’s a massive discount for a $32 billion company, especially one like Rogers, which is a dominant player in such an essential industry like telecommunications.
One of the best defensive growth stocks for long-term investors to buy now
In addition to Rogers, another high-quality stock to buy right now that’s unbelievably cheap is Jamieson Wellness (TSX: JWEL).
Jamieson develops, manufactures and distributes a variety of natural health products, such as vitamins and supplements. This is a business that’s certainly recession-resistant. However, Jamieson is also an impressive long-term growth stock.
In addition to growing organically, the stock also makes value-accretive acquisitions to expand its operations and find synergies to save on costs. Furthermore, it has also been expanding its operations rapidly in international markets, giving the $1.3 billion stock a tonne of long-term growth potential.
So, it’s not surprising that ever since going public in July 2017, Jamieson has grown its normalized EPS every year. And in 2024, analysts are estimating that Jamieson’s normalized EPS will grow another 17.3% to $1.89.
Despite its impressive, albeit short track record and its exciting potential going forward, right now, the stock is certainly cheap, making it one of the best stocks for long-term investors to buy.
Jamieson currently trades at just 16.7 times its forward earnings. That’s not just ultra-cheap for a high-quality, defensive growth stock; it’s also well below its all-time average of 23.6 times and only slightly above its all-time low of 13.5 times.
So, if you have cash you’re looking to invest today, Jamieson is certainly an absurdly cheap stock you’ll want to consider.
