The Canadian stock market’s impressive bull run last year didn’t keep me from adding to some of my long-term positions.
Some investors, likely those with short-term time horizons, may be waiting on the sidelines for the market to pull back before putting their money to work. While the market will inevitably enter a bear run at some point, having a long-term time horizon allows me to not stress about trying to time the market.
Rather than focus on timing the market, I prefer to spend my time researching companies. Once you’ve found a quality company that you believe in for the long term, it makes it a lot easier to add to that position when the market is going through a rough patch.
With that in mind, I’ve reviewed two companies that I currently have positions in. Not only did I add to my positions in these companies last year, but both are also trading at opportunistic discounts right now. While these discounted prices last, I’ll likely be adding to my positions again in 2025.
If you’re looking to take advantage of some discounted prices, I’d have these three TSX stocks on your watch list today.
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Stock #1: Brookfield Renewable Partners
Long-term investors would be wise to keep an eye on the beaten-down renewable energy sector. The space is full of high-quality stocks that are trading at must-buy prices.
At a market cap of $20 billion, Brookfield Renewable Partners (TSX: BEP.UN) is a global renewable energy leader. The company’s well-diversified portfolio of assets provides its shareholders with broad exposure to the sector.
Like many others in the space, shares of Brookfield Renewable Partners have been on the decline since early 2021. The energy stock is now trading at a loss over the past five years, excluding dividends. It’s worth noting, though, that the company’s dividend is currently yielding a whopping 6.5%.
Short-term investors may not have much interest in this pick. But for those who are willing to be patient, now could be an excellent time to start a position in Brookfield Renewable Partners.
Stock #2: Lightspeed Commerce
Lightspeed Commerce (TSX: LSPD) presents an interesting buying opportunity for potentially both long- and short-term investors.
There’s no getting around the fact that the tech stock has been a disappointing investment over the past several years. Shares are down more than 80% from all-time highs, which were last set in late 2021.
Despite the stock’s recent performance, the company continues to see strong double-digit revenue growth each quarter, which I believe is fueled by two key reasons. First, Lightspeed has a growing international presence. Second, the company offers a wide range of solutions to both e-commerce and brick-and-mortar customers.
The long-term growth potential is certainly there. But the question is, how long will it take for the stock to return to its market-beating ways?
Short-term investors could be interested in Lightspeed due to a potential sale, to which management announced they were recently exploring options for. The news alone sent the stock soaring, which could be a preview to what an actual sale could lead to.
A potential buy-out isn’t always the smartest investment thesis to chase. But when it’s paired with possible long-term growth potential, it creates an interesting buying opportunity.
At such a discounted price, I see Lightspeed as a low-risk, high-reward type of investment.
