With the broader stock markets coming off their new highs, many new investors may be wondering if this is the beginning of that much-awaited correction. Undoubtedly, it’s been many months since we’ve gotten one. And at some point or another, we’ll be overdue for that dreaded 10% decline.
In any case, I’d encourage investors to stay the course rather than seek to sell stocks before the beginning of a potential drawdown. Indeed, sell-offs can be difficult to time, and with the rise of the AI and GLP-1 trends, there’s a good chance the latest dip may just be another bump in the road that doesn’t end in correction territory.
In this piece, we’ll look at two stocks that I’ve been pursuing and plan to add to on any further dips between now and year’s end. Undoubtedly, each name stands out as a great long-term hold for any portfolio that aims to top the TSX Index over a span of many years.
So, without further ado, let’s get right into the names that are at the very top of my radar this year.
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Alimentation Couche-Tard
There’s no need to wait around for the next TSX Index market correction while you have wonderful earnings growth gems like Alimentation Couche-Tard (TSX: ATD) that have already fallen by more than 10%. Today, shares are down nearly 12% from their highs but may already be in the process of recovering after a swift nosedive on the back of no real negative news. The long-term growth thesis is still very much intact.
The only thing that’s changed, in my personal opinion, is the valuation. At writing, the stock goes for 18.3 times trailing price-to-earnings (P/E), well below the 20 times trailing P/E the convenience store giant traded at around its peak just a few months ago.
As the firm looks to grow same-store sales while exploring potential M&A opportunities, I find that ATD stock will only be kept down for so long. Either way, after its latest, likely unwarranted spill, ATD stock is a great buy in my books. Of course, there’s the nice 0.93% dividend yield, which could grow to become so much more the longer you hold the stock.
Apple
Apple (NASDAQ: AAPL) stock is another dipped play that I’d not hesitate to buy on its latest slump. Today, the stock goes for $172 and change after giving up a big chunk of the AI-fuelled Mac rally it enjoyed around a week ago. Undoubtedly, the latest news surrounding the consumer hardware giant was not good.
iPhone sales have been slipping again as of the first quarter, with Apple no longer commanding the top spot in the smartphone market. Blame Chinese rivals, if you will, but I think Apple will pick up where it left off once the dust settles and the firm looks to roll out some pretty intriguing software changes due later this year.
At 26.8 times trailing P/E, AAPL stock stands out as a glorious buy despite being down 13% from its peak. Once the tides turn over in China, I have a feeling AAPL stock will really have a chance to heat up again.
