At this rate, it won’t be long until the Canadian stock market is back to all-time highs. The S&P/TSX Composite Index is up more than 15% since late October. The index is now less than 5% below all-time highs, which were last set just about two years ago.
The Canadian stock market as a whole has been on the rise for the past four months and so have many individual stocks. While there’s still no shortage of discounted stocks for Canadian investors to choose from today, those discounts are shrinking by the week.
With that in mind, I’ve put together a well-diversified basket of three Canadian stocks that are all trading below all-time highs.
If you’re looking to add some growth to your portfolio this year, I’d suggest having these three companies on your watch list right now.
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Stock #1: Brookfield Renewable Partners
It’s been a tough go for renewable energy investors over the past three years. Leaders across the sector have seen share prices on the decline going back to the beginning of 2021.
One silver lining is that lots of renewable energy stocks have seen dividend yields shoot up with the pullback in prices. However, those dividend gains are a far cry from the market-beating returns that many renewable energy investors have been accustomed to.
At a $20 billion market cap, Brookfield Renewable Partners (TSX: BEP.UN) is a Canadian leader in the space. The company also boasts an international presence, providing plenty of exposure to the sector for its shareholders.
Even with shares down nearly 50% from all-time highs, Brookfield Renewable Partners is still a market-beater over the past five years. And that’s not even including the company’s dividend either, which is currently yielding just shy of 6%.
Stock #2: goeasy
Canadian investors have not had many opportunities to load up on this top growth stock at discounted prices like these.
goeasy (TSX: GSY) has had a resurgence over the past 12 months yet remains 20% below all-time highs.
The high-interest-rate environment has taken a short-term hit on the consumer-facing financial provider. But with potential rate cuts around the corner, investors should act quickly if they’re hoping to take advantage of these discounted prices.
Even with the pullback, goeasy is up a market-crushing 200% over the past five years.
Don’t miss your chance to load up on a dependable growth stock that rarely goes on sale.
Stock #3: Lightspeed Commerce
Of the three stocks in this basket, Lightspeed Commerce (TSX: LSPD) is by far the largest bargain. The tech stock is down close to 90% from all-time highs that were set in late 2021. That puts shares below the price that they were trading at when Lightspeed joined the TSX in 2019.
It’s been a wild ride for the company over the past several years. But with shares trading where they are today, long-term investors may see some value here.
The business itself has taken a hit as of late but I’d strongly argue not enough to warrant a 90% pullback. Year-over-year revenue growth continues to come in at double-digit rates, as Lightspeed has been able to maintain its strong market position in the commerce space.
Patient investors in search of multi-bagger returns should have this beaten-down tech stock on their radar.
