Canadian investors have not had a whole lot to complain about this year. The S&P/TSX Composite Index is sitting at a gain of 5% in 2024 and more than 15% over the past six months.
Despite the broader market’s recent success though, there are still deals to be had today. The TSX is loaded with top-quality stocks that continue to trade far below all-time highs. Many of which date back to 2021.
With that in mind, I’ve put together a basket of three beaten-down Canadian stocks that are worth a look today. All three picks have a history of rewarding shareholders. And with prices where they are today, long-term investors may find lots of upside with these three stocks
goeasy
Investors looking to load up on goeasy (TSX: GSY) at a discount may want to act quickly. At this rate, the growth stock won’t be on sale for much longer.
At one point in 2023, Shares were down more than 50% below all-time highs from late 2021. With shares up 60% over the past six months, goeasy is now down less than 20% from all-time highs.
Even with the stock’s disappointing performance in 2022 and 2023, shares are still up a market-crushing 240% over the past five years.
A slowdown in interest rate hikes is one reason for goeasy’s recent surge. As a consumer-facing financial services provider, lower interest rates tend to lead to higher demand. It’s also fair to at least partially blame the stock’s struggles in 2022 and 2023 on all of the rate hikes.
With rate cuts around the corner, though, now could be a wise time to load up on goeasy.
Lightspeed Commerce
Lightspeed Commerce (TSX: LSPD) shareholders have been on a wild ride over the past three years.
At one point in 2020, the tech stock was up a staggering 400% from its COVID-19 lows from earlier in the year. Today, shares are down close to 90% from all-time highs, which were last set in late 2021.
There’s no denying that Lightspeed, along with many others in the tech sector, sold off in 2022 due to the monster gains earned in 2020 and 2021. Looking back now, it’s easy to say that it was only a matter of time before stock prices in the tech sector came back to reality.
It could take a while for Lightspeed to return to all-time highs. So, if you’re a short-term investor looking to turn a quick profit, this might not be the company for you.
Over the long term though, this is a company poised to continue growing revenue at double-digit rates for many years to come. And if that’s the case, it’s only a matter of time before Lightspeed returns to its market-beating ways.
For investors who are looking for a fire-sale discount, this tech stock is for you.
Brookfield Renewable Partners
If you’ve been thinking about putting some money into the renewable energy space, now could be an excellent time. The sector is loaded with long-term growth potential, yet it has no shortage of deals to take advantage of.
At a market cap just shy of $20 billion, Brookfield Renewable Partners (TSX: BEP.UN) is a global renewable energy leader. Owning shares in this company provides instant exposure to the sector.
The stock is down 50% since the beginning of 2021. Still, shares are just about on par with the Canadian market’s returns over the past five years — and that’s not even including dividends, either.
At today’s discounted stock price, Brookfield Renewable Partners’s dividend is yielding a whopping 6.5%.
