The Canadian stock market as a whole has been having an incredible year in 2024. The S&P/TSX Composite Index is up more than 20% year to date, not even including dividends. Despite the strong bull run this year, opportunistic investors still have deals to make on the TSX.
Not all stocks skyrocketed to new all-time highs this year. With that in mind, I’ve put together a basket of three Canadian stocks that investors can load up on at a discount today. All three stocks have a proven track record of delivering market-beating returns.
If you still have some holiday shopping to do, these three companies should be at the top of your list.
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Brookfield Renewable Partners
The renewable energy sector has largely unperformed in comparison to the broader Canadian stock market this year. In fact, the sector has been underperforming since early 2021. Green energy stocks soared in 2019 and 2020 but have been paying the price for that surge ever since.
Short-term investors may not be overly excited to dive into the struggling renewable energy space. But investors who have long-term time horizons should not be shy about loading up on a beaten-down green energy stock today.
Brookfield Renewable Partners (TSX: BEP.UN) is a global leader in the space and can offer a whole lot to investors.
First off, shares are priced at a serious discount. The stock is trading close to 50% below all-time highs, which were last set in early 2021. One silver lining of the stock’s pullback is that the dividend yield has shot to above 5%.
The company is also no stranger to outperforming the market’s returns. And with the demand for renewable energy not looking like it will be slowing down anytime soon, this could be an incredibly wise time to load up on a company like Brookfield Renewable Partners.
goeasy
Alongside many other growth stocks, goeasy (TSX: GSY) is trading today below all-time highs that were last set in late 2021.
goeasy has done an admirable job trying to return to all-time highs yet remains 25% away still. But at this rate, it’s only a matter of time before the consumer-facing financial services provider is setting new highs.
Even with the 25% discount, goeasy has still returned 130% over the past five years. In comparison, the broader Canadian stock market has returned just 50%, excluding dividends.
If you’re interested in this under-the-radar growth stock, you’ll want to act quickly. This discount might not be around for much longer.
Air Canada
The airline space is certainly a cyclical one. It’s also one that’s not typically known for delivering market-beating returns. But for the right company, at the right price, an airline stock could be a great last-minute gift for your portfolio this year.
Canada’s largest airline, Air Canada (TSX: AC), does have a market-beating track record. However, shares have struggled to return anywhere near pre-pandemic prices. The stock is currently down 50% since the beginning of 2020.
The airline stock has been gaining momentum lately, though, with shares up more than 40% over the past six months.
If you’re a patient investor who can handle volatility, taking a chance on this discounted airline stock could be a great long-term addition to your portfolio.
