The Canadian stock market rebounded impressively well last week, with the S&P/TSX Composite Index returning close to 5%. Still, the index is down almost 5% since the beginning of April, when the volatility really began hitting the stock market.
I don’t blame short-term investors for standing pat on the sidelines right now. It’s hard enough trying to predict short-term movements in the market in the calmest of conditions, let alone when there is so much uncertainty in the global macroenvironment, like there is today.
Long-term investors, however, should have their watch lists ready to go. Time will tell, but Canadian investors may have just been gifted a buying opportunity. There’s no shortage of top-quality stocks on the TSX trading at bargain prices right now.
With that in mind, I’ve put together a list of four discounted stocks to have on your radar.
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Brookfield
There’s never a bad time to load up on this global asset manager.
Brookfield (TSX: BN) is as well-diversified a stock as you’ll find on the TSX. But even as diversified as it is, the stock hasn’t had any trouble delivering market-beating returns in recent years.
Shares are up 80% over the past five years, compared to the market’s return of less than 5%, excluding dividends.
If you’ve got some cash to spare but are not sure where to spend it, you cannot go wrong with Brookfield.
Shopify
Shopify (TSX: SHOP) has dropped close to 20% since the beginning of April, which could be an opportunistic time to start a position.
The tech stock has been on the rise since bottoming out in late 2022. Shares are up more than 200% since then, yet continue to trade close to 50% below all-time highs from 2021.
It’s likely going to continue to be a bumpy ride for Shopify shareholders, but I’d also bank on many more years of market-beating returns.
If you can handle the volatility, now’s the time to load up.
goeasy
goeasy (TSX: GSY) is another growth stock trying to return to all-time highs.
The consumer-facing financial services provider saw its stock price crater as interest rates skyrocketed. But as we’ve seen rates begin getting cut, the stock has reacted positively.
Shares are down close to 30% from all-time highs, which were last set in late 2021. Even so, goeasy is up a market-crushing 320% over the past five years.
goeasy has a proven track record of delivering market-beating returns. Don’t miss your chance to pick up shares while the growth stock is trading at a rare discount.
Bank of Nova Scotia
During volatile market periods, having a steady stream of passive income could go a long way. And what better way to build a dependable stream of passive income than investing in the major Canadian banks?
The Big Five have some of the highest yields and longest payout streaks you’ll find on the TSX.
At today’s stock price, Bank of Nova Scotia’s (TSX: BNS) 6.4% yield ranks it as the highest amongst the Big Five. In addition, the bank has been paying a dividend to its shareholders for close to 200 consecutive years.
If you plan on owning growth stocks like Shopify and goeasy, you’d be wise to balance out those holdings with a few dependable dividend stocks, like Bank of Nova Scotia.
