It’s been a wild ride for investors across the globe over the past month. In Canada, specifically, the S&P/TSX Composite Index dropped more than 10% in less than a week earlier this month. Impressively, though, the index is up close to 10% since bottoming out on April 8 and is now about flat on the year, excluding dividends.
The Canadian market as a whole may have rebounded well, but there’s still no shortage of uncertainty in the macro-environment, at least in the short term. If the market took another 10% plunge in May, I wouldn’t think many investors would be surprised.
The reality is that we’re going through an extremely volatile market period. As a result, it’s anybody’s guess as to how the Canadian stock market is going to perform in the coming weeks.
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Investing during volatile market periods
As volatile as the market is today, that’s not necessarily a reason to be on the sidelines. For investors with long-term time horizons, now could be a great time to put some money to work. There’s no shortage of deals to take advantage of on the TSX today.
I’ve reviewed two beaten-down stocks on the TSX that are trading at opportunistic discounts. Both companies are trading far below all-time highs yet remain loaded with long-term growth potential. Don’t miss your chance to load up on shares while these discounted prices last.
Stock #1: Brookfield Renewable Partners
It’s been a rough go for renewable energy investors over the past few years. Since 2021, leaders across the space have seen stock prices on the decline. One silver lining, though, is that dividend yields have been on the rise with all of the steep sell-offs.
Excluding dividends, shares of Brookfield Renewable Partners (TSX: BEP.UN) are down about 50% from all-time highs, which were last set in early 2021. That puts the renewable energy stock barely in positive territory over the past five years.
Short-term investors might not see much upside here. But for the patient, renewable energy bulls, or passive-income investors, for that matter, now’s the time you want to be investing.
Brookfield Renewable Partners has a proven track record of delivering market-beating returns. I’d strongly argue that it’s the perfect option for investors who are looking to put some money to work in the renewable energy sector.
At today’s stock price, the company’s dividend is yielding more than 6%.
Stock #2: goeasy
goeasy (TSX: GSY) might not offer as much of a discount as Brookfield Renewable Partners, but there’s still lots of potential value here to capture.
Shares of goeasy are down close to 30% from all-time highs. Even so, the growth stock is up a market-crushing 275% over the past five years.
There’s no denying that the high-interest-rate environment took a short-term hit on the company. As interest rates rose, it wasn’t surprising to see the consumer-facing financial services provider experience a slowdown in demand.
With more interest rate cuts potentially around the corner, investors won’t want to wait too long before picking up shares of goeasy. At this rate, the company will be back to all-time highs before we know it.
