The Canadian stock market spent most of 2023 trading sideways, struggling to return to all-time highs that were set in 2022. It’s been a far different story in 2024 so far though.
Canadian investors have had plenty to cheer about this year. The S&P/TSX Composite Index is up nearly 7% on the year and more than 10% over the past 12 months.
Sectors that struggled in 2022 and 2023 have come roaring back this year. The technology and renewable energy spaces are two examples of sectors that have rebounded extremely well in 2024. But despite the recent surge, there are still deals to be had in both sectors.
With that in mind, I’ve reviewed two top Canadian stocks that are well on their way to returning to all-time highs in the near future. Both stocks took a hit in recent years but have shown as of late that they’re ready to return to their market-beating ways.
TSX stock #1: goeasy
At this rate, goeasy (TSX:GSY) won’t be trading at a discount for much longer. The growth stock is up more than 60% over the past year. Even so, shares are still trading close to 20% below all-time highs from late 2021.
Interest rates are partially to blame for goeasy’s 50% pullback in 2022. As interest rates spiked, demand for the company’s products and services unsurprisingly slowed. Growth stocks as a whole also experienced a slowdown in 2022, which was to be expected at some point after such a strong year in 2021.
Even with the selloff in 2022 though, goeasy is still up a market-crushing 260% over the past five years.
With potential rate cuts around the corner, now could be an incredibly opportunistic time to load up on shares of goeasy.
Don’t miss your chance to load up on a top-quality growth stock that rarely goes on sale.
TSX stock #2: Brookfield Renewable Partners
The renewable energy space as a whole has had a tough go since the beginning of 2021. Leaders across the sector are trading far below all-time highs, and that certainly includes Brookfield Renewable Partners (TSX:BEP.UN).
Excluding dividends, shares of the renewable energy stock are down more than 30% since the beginning of 2021. The stock has still managed to outperform the S&P/TSX Composite Index over the past five years though.
One positive of the stock’s recent decline is that the dividend yield has soared. At today’s discounted price, Brookfield Renewable Partners’s dividend yields just shy of 5%.
There aren’t many market-beating stocks on the TSX with a dividend yield that high.
In a sector with strong long-term growth potential, investors would be wise to consider a company like Brookfield Renewable Partners on their watch list right now.
Foolish bottom line
Long-term growth investors with some cash to spare should not be shy today. The TSX has no shortage of high-quality stocks that are trading at rare discounts.
As long as you’re willing to be patient, goeasy and Brookfield Renewable Partners are two stocks that I’d have no hesitation buying shares of today.
