The Canadian stock market has been on an absolute tear as of late. The S&P/TSX Composite Index is up 15% over the past four months and is now nearing a return of close to 25% on the year. And that’s not even including dividends, either.
But as hot as the market is right now, you don’t necessarily need to be on the sidelines, waiting for a pullback to put some money to work. The TSX still has plenty of top stocks trading below all-time highs to take advantage of today.
I’ve put together a well-rounded basket of three discounted stocks that are poised to return to their market-beating ways.
If you’ve got time on your side, these three well-priced companies deserve a spot on your watch list.
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Brookfield Renewable Partners
The renewable energy sector could be an excellent place to be investing today. Despite boasting huge long-term growth opportunities, the sector as a whole has been on the decline since early 2021.
Brookfield Renewable Partners (TSX: BEP.UN) is a global leader in the space, and the stock can offer a whole lot to investors. Excluding dividends, shares are down more than 40% from all-time highs, which were last set in early 2021.
As a proven market-beater in a growth-filled space, this discount alone is enough of a reason to have the company on your radar. Brookfield Renewable Partners had been a consistent market-beater in the years leading up to 2021. And as a long-term shareholder myself, I’m confident it’s only a matter of time before it’s back to outperforming the market.
At today’s stock price, Brookfield Renewable Partners’s dividend is also yielding a whopping 5%.
Air Canada
I’ve got Air Canada (TSX: AC) on my watch list for reasons similar to those that would make someone interested in Brookfield Renewable Partners.
Canada’s largest airline has a proven market-beating track record, yet it continues to trade far below all-time highs. Shares of Air Canada are down about 50% since the beginning of 2020. But from 2010 to 2020, the airline stock put up huge market-crushing numbers.
The airline space certainly isn’t known for monster returns, but don’t let that sway you from investing in Air Canada.
With shares up close to 50% over the past six months, we could be witnessing the start of Air Canada’s steady rise to new all-time highs. Don’t miss your chance to load up while these prices still last.
Lightspeed Commerce
Last on my list is a beaten-down tech stock that could offer investors long-term market-beating growth potential or a short-term pop.
Lightspeed Commerce (TSX: LSPD) announced in September that it was exploring options for a potential sale. Since then, shares are up more than 30%. Short-term investors could get lucky here and load up before a surge from a sale. Long-term investors, though, still have just as much of a reason to have this tech company on their radar.
Shares are down more than 80% from all-time highs in late 2021, providing patient investors with an interesting buying opportunity.
Lightspeed already owns a global presence in the massively opportunistic commerce space. Revenue growth is also not expected to drop below the double-digit range anytime soon.
If you’re looking for a low-risk, high-reward type of growth stock, Lightspeed Commerce is the company for you.
