The Canadian stock market has been on a strong run over the past several weeks. The recent surge now has the S&P/TSX Composite Index up about 8% on the year, without even including dividends.
Despite the bullishness that many investors might be feeling, there are still plenty of deals on the TSX to take advantage of right now.
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Long-term investing for the win
Psychologically, it’s not easy to invest in a stock that’s spiralling downward when seemingly the rest of the market is surging upwards.
If you’re having a difficult time doing exactly that, I’d encourage you to look past any type of short-term volatility and instead look at the business itself.
Investors who are solely focused on chasing the hottest stock will miss out on screaming deals that are right in front of you.
With that in mind, I’ve reviewed two discounted TSX stocks that offer loads of long-term upside.
Canadians can own this duo of stocks for less than $100 right now.
Stock #1: Toronto-Dominion Bank
Not many stocks on the TSX can rival the track record of the major Canadian banks. They might not be the most exciting stocks to own but they sure are dependable.
Steady returns and passive income are what make bank stocks such a great cornerstone to a long-term investment portfolio. They can help balance out any high-growth stocks that you’re taking a chance on.
You can’t go wrong with owning any of the Big Five today. Toronto-Dominion Bank (TSX:TD), though, is hard to compete with.
It’s the bank’s U.S. exposure that sets it apart from its peers. Yes, TD Bank can provide steady returns and pays a juicy dividend, which is currently yielding above 5%. But with all of the growth potential from its U.S. operations, TD Bank is well-positioned to strive toward being Canada’s top-performing bank in the coming years.
With shares down nearly 30% from all-time highs, this could be an excellent time for a long-term investor to start a position.
Stock #2: Lightspeed Commerce
Lightspeed Commerce (TSX:LSPD) has had its share of struggles over the past couple of years. At one point, the stock was up a whopping 400% from its pandemic lows. Today, shares are trading at just about the same place they were at the beginning of 2020.
As a high-growth tech stock, volatility is to be expected. But when many others in the sector have sky-rocketed to new all-time highs in 2024, as a Lightspeed shareholder myself, I can say that it’s been a disappointing year so far.
While the business itself has gone through some turbulence, I’d argue that it is in a far healthier shape than what the stock price may reflect. Revenue growth continues to soar in the double-digit range and the company has already established an international presence in a growing market.
Shares surged close to 20% when the company presented its fourth-quarter report in May.
If you’re looking to take a chance on a low-risk, high-reward growth stock, Lightspeed is the company for you.
