After a rough ending to a forgettable year for investors in 2022, the Canadian stock market got off to a hot start in 2023. The S&P/TSX Composite Index surged more than 5% in January. But since early February, itâs been a gradual decline, returning the majority of the gains earned earlier in the year.
Despite the recent pullback, though, there certainly are reasons for long-term investors to be bullish today. Interest rate hikes are finally beginning to slow down, hinting that the hikes may be doing their job of taming inflation. Thereâs still a ways to go before returning to pre-pandemic levels, but we can now say that itâs possible that the worst may be behind us.
With a market rebound looming around the corner, now is an excellent time for long-term investors to be putting cash into the stock market. And fortunately, for Canadian investors, the TSX has no shortage of discounted stocks to take advantage of.Â
Here are two top stocks trading at bargain prices that may not be around for much longer.
Canadian stock #1: goeasy
Not many stocks have been as consistent as goeasy (TSX:GSY) over the past decade when it comes to market-beating returns. Growth has slowed in recent years, but the stock still continues to massively outperform the broader marketâs performance.
Today, shares are trading at just about 50% below all-time highs that were sent in late 2021. Still, the stock is up a market-crushing 180% over the past five years.
As a consumer-facing financial lender, high interest rates have understandably hurt demand for goeasy in the short term. But over the long term, itâs only a matter of time before the company begins to see demand ramp back up.
If youâve got a time horizon that allows you to be patient, you wonât want to miss this buying opportunity.
Canadian stock #2: Northland Power
Renewable energy is one area of the stock market that has been suffering as of late. The sector as a whole has been on the decline since early 2021, presenting a great buying opportunity for long-term investors.
At a market cap of close to $10 billion, Northland Power (TSX:NPI) is a great company to own for instant diversification to the renewable energy space. The company has a global presence with a wide-ranging portfolio of assets.
Shares are down 20% over the past year and more than 35% below all-time highs.
Still, Northland Power has managed to nearly double the returns of the S&P/TSX Composite Index over the past five years. And thatâs not even including the energy companyâs impressive 3.5% dividend yield, either.
For a sector loaded with long-term growth potential, now would be a wise time to load up on this discounted market leader.
Foolish bottom line
I wouldnât bank on volatility slowing down just yet. Thereâs still plenty of uncertainty in the short-term future of the economy. But over the long term, thereâs no reason to believe why great companies won’t soon return to their winning ways.
Investors with cash readily available should stay away from trying to time the marketâs bottom. Instead, Iâd strongly suggest putting that money to work today, while these discounted prices are available. Your future self will thank you before you know it.
The post 2 Undervalued Canadian Stocks to Buy in March 2023 appeared first on The Motley Fool Canada.
Should You Invest $1,000 In goeasy?
Before you consider goeasy, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in March 2023… and goeasy wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 22 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks
* Returns as of 3/7/23
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Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.