Canadian investors have been enjoying plenty of gains as of late. The S&P/TSX Composite Index is up more than 10% since the beginning of August. The index is nearing an incredible 20% return on the year. And that’s not even including dividends.
But with the market as hot as it is today, there are still deals to be found on the TSX. Lots of top-quality stocks continue to trade below all-time highs.
Don’t let the market’s recent surge keep you from investing. I’ve reviewed three stocks that have been rallying as of late yet continue to trade at bargain prices.
If you’ve got some cash to spare in the coming months, these three companies should be on your radar.
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Stock #1: Brookfield Renewable Partners
It’s been a while since shareholders have seen Brookfield Renewable Partners (TSX: BEP.UN) perform like it has over the past couple of weeks.
The renewable energy stock has sky-rocketed more than 30% over the past six months. And that’s in addition to the company’s dividend, which is currently yielding just shy of 5%.
The renewable energy sector as a whole has been on the decline since early 2021, which is when Brookfield Renewable Partners was last trading at all-time highs.
With shares on the rise but still down 30% from all-time highs, now could be an incredibly opportunistic time to load up. The company is a market leader in a space that’s loaded with long-term growth potential.
If you’re bullish on the renewable energy space, I’d strongly consider picking up some shares of Brookfield Renewable Partners soon. At this rate, this discounted price won’t be around for much longer.
Stock #2: Shopify
Shopify (TSX: SHOP) has seen its stock price jump nearly 50% since the beginning of August, putting shares in positive territory on the year.
It’s been an incredibly volatile past several years but the tech stock has been making strong progress inching its way back to all-time highs, which were last set in late 2021. Shares are down close to 50% since late 2021. Still, Shopify has returned a market-crushing 175% to its shareholders over the past five years.
I wouldn’t bank on Shopify not being a volatile stock anytime soon. That being said, I also wouldn’t bet against the stock to continue outperforming the market’s returns for years to come.
If you can handle the volatility, you won’t want to miss this buying opportunity. Shopify might not be this cheap again for a long time.
Stock #3: Air Canada
Air Canada (TSX: AC) has struggled mightily to return to anywhere close to its all-time highs, which we set in pre-COVID time.
Contrary to many of its peers, Air Canada does own a track record of delivering market-beating returns. Prior to 2020, the airline stock had been on an impressive run for much of the previous 10 years. Today, shares are down more than 50% since early 2020.
There’s no question that the airline industry is a cyclical one. It can, however, reward opportunistic investors.
You may need to be more patient with this pick but there could be some serious long-term value here.
