Canadian blue-chip stocks are a staple in many investor portfolios due to the long-term reliability they offer as investments. Among them, the top Canadian bank stocks are considered investments you can almost never go wrong with. Despite being prone to the impact of broader market movements, Canadian bank stocks belong to a resilient financial services sector. The top players have the kind of economic moats to weather the storm of short-term volatility and deliver substantial long-term growth.
This is why many investors wait on the sidelines for Canadian bank stocks to see a pullback in share prices so they can buy at a discount. For the last few months, Canadian bank stocks have been on a bull run. However, there are opportunities to be had for those who know where to look.
Today, I will quickly discuss two Canadian bank stocks to buy at a discount.
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National Bank of Canada
National Bank of Canada (TSX: NA) is the sixth largest of Canada’s Big Six banks, and it trails its closest peers in market cap by a significant margin. As of this writing, National Bank of Canada stock trades for $165.87 per share. The stock is up by 27.50% from this point 12 months ago. However, it trades at a 6.57% discount from its 52-week high.
While the discounted share prices might seem barely significant, it isn’t something to disregard. The NA is a well-run Canadian bank with earnings tied to lending, capital markets, and wealth management. The stock has exhibited growth even through periods of economic turmoil. Its fourth-quarter earnings for fiscal 2025 saw it report $1.06 billion in net income, and its adjusted net income was $1.16 billion.
Despite the attractive share price, the risk of the housing market should keep you feeling cautious about investing too much in the stock. However, it is too cheap to ignore if you want to capture long-term gains.
Toronto-Dominion Bank
Toronto-Dominion Bank (TSX: TD) is one of the Big Six banks that has been a compelling investment for Canadians for around two centuries. The bank has paid dividends for almost 170 consecutive years, growing its payouts by around 8% per year in the last decade. The bank stock trades for $130.37 per share at writing. Up by around 67% from its 52-week low, TD Bank stock trades at a 1.77% discount from its 52-week high.
The $222.57 billion market-cap Canadian bank stock is a giant in the industry with a diversified revenue base and consistent growth in deposits and loans. The bank has a robust balance sheet and prioritizes operational efficiency. In turn, it protects profitability across economic cycles, delivering substantial returns to investors in the process.
The bank’s strategy of pursuing strategic acquisitions to strengthen its financials should make investors hopeful about its future prospects. It might not be too far discounted from its all-time highs, but it seems too well-priced to ignore.
Foolish takeaway
Before you dive in and spend whatever investable cash you have on buying Canadian bank stocks, a bit of patience might be useful. There is a chance we might see further declines in share prices across the board if the market goes through a downturn. While awaiting a drastic pullback, nibbling away at current levels might not be a bad idea.
