Spring Sale
The high levels of volatility in 2022 continued right into 2023. The S&P/TSX Composite Index may be trading just shy of all-time highs today, but the recent gains haven’t been without extreme volatility. After a drop of more than 5% during February and March earlier this year, the Canadian stock market quickly rebounded, showing much-welcomed signs of strength to investors.
But despite the market’s impressive resilience this year, plenty of top TSX stocks continue to trade at discounted prices. In fact, there’s no shortage of high-flying growth stocks on the TSX that have yet to return to all-time highs set in late 2021.
It’s extremely difficult to predict how the S&P/TSX Composite Index will fare through the remainder of the year. Instead, I’d prefer to focus my time researching undervalued companies that I believe have long-term growth potential.
With that, I’ve put together a list of three well-priced TSX stocks at the top of my own watch list right now. Whether you’re looking for a dependable dividend yield or multi-bagger growth potential, this list should have you covered.
goeasy
Shares of goeasy (TSX:GSY) have shot up in May, putting the stock in positive territory for the year. Still, goeasy is trading at roughly half the price that it was in late 2021.
Alongside many other growth stocks, shares of goeasy surged in the second half of 2020 and most of 2021. But since then, it’s been mostly downhill for the consumer-facing financial services company.
From a valuation perspective, there are cheaper stocks on the TSX than goeasy. But with a discount of 50% from all-time highs, this market-beating performer deserves serious attention for growth investors looking for a bargain.
Lightspeed Commerce
Speaking of beaten-down growth stocks, Lightspeed Commerce (TSX:LSPD) has entered value territory, in my books. The tech stock is down close to 90% from late 2021. That puts shares at just about the same price as they were trading when the company went public in 2019.
The stock price may have been slashed, but I’m still a bullish shareholder of this tech company. Like many other companies in the tech sector, Lightspeed hasn’t been immune to layoffs. But even with a reduced workforce, management continues to remain as focused as ever on long-term growth.
Lightspeed has built itself into a robust cloud-based commerce platform. It provides both small- and medium-sized businesses with a wide range of products and services. Not to mention, the company also continues to expand its international presence.
For value investors that don’t mind the volatility and are willing to be patient, now could be an incredibly opportunistic time to start a position in this beaten-down tech stock.
Sun Life
The last pick on my list of value stocks is a dependable dividend-paying company.
At a market cap of close to $40 billion, Sun Life (TSX:SLF) provides its shareholders with broad international exposure to the financial space.
While growth rates may not be able to compare with the first two companies I reviewed, Sun Life has other selling points. The insurance stock can add stability and defensiveness to an investment portfolio. In addition to that, the company pays a top dividend that’s currently yielding above 4%.
Shares may be trading near all-time highs but it’s still far from an expensive stock when comparing valuation levels to both goeasy and Lightspeed.
Investors that feel over-indexed toward high-volatile growth stocks would be wise to have this dependable dividend stock on their watch list.
