The S&P/TSX Composite Index is up about 5% on the year, with the majority of the gains coming in March. But while the Canadian stock market may be on the rise right now, there are still plenty of deals to be had.
I’ve put together a list of five top Canadian stocks that are all trading at opportunistic discounts.
If you’re looking to put some money to work in the stock market in April, these five companies should be on your watch list.
Stock #1: Air Canada
Canada’s largest airline stock continues to trade far below pre-pandemic levels. Air Canada (TSX:AC) is down more than 50% since it was last at all-time highs in early 2020.
Where Air Canada separates itself from other North American airline stocks is its market-beating track record. The airline space isn’t known for outperforming the market’s returns, but Air Canada is a proven market beater.
While it may take time for Air Canada to recover, who knows when we’ll see it trading at a discount like this again. Patient investors should have this beaten-down airline stock on their radar.
Stock #2: Shopify
At this rate, Shopify (TSX:SHOP) won’t be trading at a discount for much longer. Shares may be down 50% from all-time highs but the tech stock is up a whopping 75% over the past 12 months. And even with the current discount, Shopify is still nearing a market-crushing return of 300% over the past five years.
Even when Shopify returns to its all-time high price, I wouldn’t bank on volatility slowing down all that much. One potential downside of a stock with high growth potential is high volatility.
If you can stomach the price swings, growth investors shouldn’t wait much longer on this sale.
Stock #3: Bank of Nova Scotia
A high-yielding dividend stock is a perfect option to help balance out a portfolio that’s full of high-growth stocks like Shopify. The passive income that’s generated can help soften the short-term impact of volatility.
At today’s stock price, Bank of Nova Scotia (TSX:BNS) is the only Canadian bank yielding above 6%. In addition, shares are also down 25% from all-time highs.
The Canadian banks are a perfect place for passive-income investors to be putting money to work in April.
Stock #4: Fortis
Speaking of dependable dividend stocks, the utility sector is another area of the stock market that growth investors should not neglect.
In addition to passive income, a company like Fortis (TSX:FTS) can provide a portfolio with defensiveness. Due to the steady levels of demand, utility stocks tend to enjoy very low levels of volatility.
Fortis is currently down 20% from all-time highs and yielding above 4%.
There’s not a whole lot to get excited about with this company, but there’s absolutely nothing wrong with being boring when it comes to long-term investing.
Stock #5: Northland Power
Short-term investors may not have much interest in the renewable energy sector, but there could be loads of long-term value here.
Like many of its peers, shares of Northland Power (TSX:NPI) have been on the decline since early 2021. Excluding dividends, the energy stock is trading at a loss over the past five years.
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Prior to peaking in 2021, though, Northland Power had been no stranger to delivering market-beating returns.
One plus side of the recent pullback is that the dividend yield has shot up. At today’s stock price, it’s above 5%.
