With several Canadian stocks trading cheaply today, these are the opportunities investors can wait years for. Nobody’s going to complain about a multi-year bull run. The one downside to lengthy bull runs, though, is that there are very few opportunities to buy top Canadian stocks while they’re undervalued.
So, when you get the opportunity to find high-quality long-term investments, it’s essential to take advantage. The only problem with the environment today is that with so many stocks trading cheaply, investors can be overwhelmed with choices.
So, if you’ve got cash that you’re looking to invest but want to ensure the Canadian stocks you buy are the best of the best, here are three of the top stocks trading at the most significant discounts today.
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A top retailer that’s been temporarily impacted by the economy
There’s no question that Canadian Tire (TSX:CTC.A) is one of the best-known retailers in Canada and one of the best stocks to buy now.
For years, the retailer has been growing its business both organically and through value-accretive acquisitions. And prior to the weakening economic environment, Canadian Tire was in the midst of a multi-year growth plan.
Therefore, while the stock is undervalued and while it’s temporarily seeing an impact on its operations, it’s certainly one of the best stocks to buy now.
Not only is it cheap compared to the expected earnings analysts anticipate it can generate over the next four quarters, but it’s also exceptionally cheap when you consider its potential after it recovers.
In fact, today, Canadian Tire trades at a forward price-to-earnings ratio of just 12 times. However, with analysts expecting Canadian Tire’s earnings per share to grow by over 26% next year, Canadian Tire currently trades at just 9.5 times its expected earnings in 2025.
Finally, in addition to the ultra-cheap valuation Canadian Tire trades at, it also pays an impressive dividend with a current yield of just over 5%. So, if you’re looking for top stocks to buy in this environment, Canadian Tire is certainly an excellent choice.
One of the best long-term Canadian growth stocks to buy now
Another ultra-cheap stock to consider today is Cargojet (TSX:CJT), especially when you factor in its long-term growth potential.
As the popularity of e-commerce has consistently increased in the last few years, so too has the demand for overnight, time-sensitive shipping methods. And when you consider that Cargojet is responsible for roughly 90% of all domestic overnight air cargo services available in Canada, it’s clear that it has a tonne of growth potential due to its dominant market position.
As the economy has worsened, though, there’s been a drop in e-commerce sales and, consequently, the demand for Cargojet’s services, which has led to the stock selling off significantly.
Therefore, while this high-potential Canadian growth stock trades roughly 50% off its all-time high, there’s no question it’s one of the best investments to consider now.
A top Canadian stock to buy while it’s dirt-cheap
Finally, although Cineplex (TSX:CGX) has yet to recover from the pandemic nearly four years after it was initially impacted, the stock is still ultra-cheap today and has significant growth potential in the coming months.
Not only should Cineplex continue to see an uptick in attendance and a recovery in its operations, but with patrons spending record amounts during visits to Cineplex’s theatres, the media company’s profitability is rapidly recovering as well.
Furthermore, while its cinema business has struggled to fully recover, in part due to a lack of consistent and quality content coming from Hollywood, it continues to earn record revenue from its location-based entertainment businesses such as Playdium and The Rec Room.
Not to mention, with its loyalty program that boasts more than 14 million members, management has options to get creative and attempt to drive attendance higher in its theatres.
Therefore, while Cineplex stock trades just off its 52-week low, at roughly $8 a share, it’s exceptionally cheap and one of the best Canadian stocks to buy now.
