The Canadian stock market started the year on a strong note, and it seems that it will end the year the same way. As of this writing, the S&P/TSX Composite Index, which is the benchmark for the Canadian stock market, is up by a massive 41.84% from its 52-week low. The uptick can be attributed to the holiday season and the spending spree that accompanies it, but not every stock is soaring to new all-time highs yet.
The bullish movement of the index shows that share prices are rising across the board, but some TSX stocks are lagging behind the rest of the market. If you are looking for undervalued stocks to buy before prices soar, here are two that you should have on your radar.
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Lightspeed Commerce
Lightspeed Commerce (TSX:LSPD) is a $2.27 billion market-cap tech stock that might be overdue for increased investor attention. The company started by making tech for point-of-sale counters, but has since become an omni-channel, e-commerce-enabling company with a Software-as-a-Service (SaaS) platform. The software it provides lets its consumers get more functionality because it engages end-consumers, and helps them manage operations, accept payments, and grow their businesses.
Shares of Lightspeed Commerce have lost considerable value from peak levels, but the underlying business is strong. Its turnaround plan seems to be working, and the company’s revenue keeps climbing. By leveraging artificial intelligence (AI), the company is also accelerating its growth. The company has strong fundamentals, and it looks too cheaply priced to ignore. As of this writing, LSPD stock trades for $16.71 per share.
Cargojet
Cargojet (TSX:CJT) is a $1.14 billion market capitalization Canadian air cargo company. It boasts a network of domestic air cargo and has several routes transporting cargo to several international destinations. Lower trading volumes worldwide this year saw Cargojet stock take a significant hit in its share price. Even then, the company’s domestic network continued performing well, and the holiday season might give it the boost it needed.
The fourth quarter is typically the busiest for Cargojet, and it is upon us. The surge in shipping volumes has already translated to an uptick in share prices, and there might be more to come. As of this writing, Cargojet stock trades for $75.74 per share. It is up by 3.15% in the last 30 days, and still trails its 52-week high by a massive 40.91%. It might be a good time to invest in its shares.
Foolish takeaway
Despite a strong overall rally in the stock market, several high-quality stocks remain attractively priced. The valuations for many companies have yet to catch up with the strength of their underlying businesses.
There is indeed a window for investors seeking bargains in the stock market right now. If you want to put some fresh capital to work, Lightspeed Commerce stock and Cargojet stock can be good investments to consider.
