The Canadian stock market as a whole had a strong year in 2024 but has been hit with a slight pullback as of late. The S&P/TSX Composite Index has dropped roughly 5% since the beginning of December. Even so, the index is still up 15% over the past 12 months. And that’s not including dividends, either.
Short-term investors might be wary of putting their money to work right now. But for those with a long-term time horizon, this could be an excellent buying opportunity.
Even prior to the market’s recent skid, there was still no shortage of discounts available on the TSX. Certain sectors of the market are loaded with screaming deals to take advantage of, including tech and renewable energy.
With that in mind, I’ve reviewed two top growth stocks that are trading at must-buy prices. Both picks are proven market-beaters and happen to be trading far below all-time highs.
Stock #1: Shopify
It’s been a wild ride for Shopify (TSX:SHOP) shareholders over the past five years. The stock might be up a market-crushing 150% since the beginning of 2020 but it hasn’t been without extreme levels of volatility.
The tech stock was last trading at all-time highs in late 2021. Shares shortly after began plummeting until bottoming out in late 2022. Since then, shares have been on the rise, returning an impressive 180% over the past two years. Still, the tech stock is down 30% from all-time highs.
I wouldn’t bank on Shopify being a low-volatile investment anytime soon. That being said, I also wouldn’t bank on revenue growth slowing down anytime soon, either.
Ever since Shopify joined the TSX in 2015, it has been a volatile investment. It does, however, have a rich history of pushing through volatile periods en route to delivering market-beating gains.
If you’re able to remain patient, this is a discount you’ll want to take advantage of.
Stock #2: Brookfield Renewable Partners
Brookfield Renewable Partners (TSX:BEP.UN) might not be able to match Shopfiy’s growth rates, but there’s a lot to like about this beaten-down renewable energy stock.
Like many of its peers, shares of Brookfield Renewable Partners have been largely on the decline since early 2021. The stock is just about flat over the past five years, excluding dividends, and is currently down 50% from all-time highs.
In the short term, this may be a tough sell for investors. It’s anybody’s guess as to when the renewable energy sector will end this downward spiral. Over the long term, though, it’s hard to argue against the growth potential here.
Brookfield Renewable Partners is a global leader in the space. This means that when the sector does finally rebound, the company will be in a prime position to return to its market-beating ways. And while investors patiently wait for this rebound to happen, there’s a 6% dividend yield to enjoy.
Foolish bottom line
Unfortunately, there’s no shortcut to making money in the stock market. Time and patience are two key ingredients to a winning portfolio. Fortunately, however, the TSX is loaded with top-quality stocks to choose from.
If you’re ready to put some money to work in the stock market, Shopify and Brookfield Renewable Partners are two companies that should be at the top of your watch list right now.
