The Canadian stock market has been on fire as of late. Following a sudden pullback in early April, the S&P/TSX Composite Index has surged an impressive 20% in less than four months. The recent swing has the previously mentioned index now up 10% on the year, not even including dividends.
As hot as the market is right now, though, there are still deals out there for a patient investor. The market as a whole may be at an all-time high, but many individual stocks are trading at massive discounts today.
With that in mind, I’ve reviewed two beaten-down TSX stocks that are no strangers to delivering market-beating returns.
If you’ve got time on your side, these two companies are worth a serious look.
Lightspeed Commerce
It’s been a rollercoaster of a ride for anyone who has been a long-term Lightspeed Commerce (TSX:LSPD) shareholder, including myself.
The tech stock finds itself today down close to 90% below all-time highs from 2021. In addition, shares are currently trading at just about the same price that they went public at in 2019.
In the short term, I wouldn’t expect Lightspeed to return to its market-beating ways just yet. The company is still largely figuring out its presence in the global commerce ecosystem. As with any turnaround story, it will not happen overnight.
The long-term bull case is that Lightspeed has built a global presence in the continuously growing commerce space, offering its customers a wide range of products and services to choose from. A wide-spanning presence has been a key reason for the company being able to continue delivering revenue growth in the double-digit range.
If you’re looking for a low-risk, high-reward type of investment, this would be my choice.
Brookfield Renewable Partners
Similar to the Canadian stock market, Brookfield Renewable Partners (TSX:BEP.UN) has been on a promising run as of late.
The renewable energy stock is up more than 20% over the past six months. Even so, shares continue to trade 40% below all-time highs from 2021, excluding dividends.
Like many others in the renewable energy space, Brookfield Renewable Partners has seen its stock price largely struggle since late 2021. The sector as a whole exploded in 2019 and 2020, which perhaps at least partially explains the decline in the years that followed.
For long-term investors, the renewable energy space may be a cyclical one, but it’s hard to argue against the growth opportunity. Clean energy consumption is only expected to continue growing, which I’m betting will at some point lead to Brookfield Renewable Partners’s return to its market-beating ways.
And in the short term, there’s a high-yielding dividend to enjoy. At today’s stock price, Brookfield Renewable Partners’s dividend is yielding a whopping 5%.
Foolish bottom line
There’s no need to contemplate investing while the market as a whole is trading at all-time highs. As you can tell from the two companies I reviewed, there are high-quality TSX stocks that are trading at opportunistic discounts today.
Don’t miss your chance to load up on shares while these discounted prices last.
