The volatility from 2022 hasnât slowed all that much in 2023 but at least the S&P/TSX Composite Index is positive year to date. Itâs been a slow grind attempting to return to all-time highs, but the Canadian stock market has been making progress over the past 12 months.
Thereâs no denying the uncertainty that investors are faced with today. Inflation and interest rates both remain far higher than pre-pandemic levels. In addition, a recession occurring in 2023 is still not out of the question.
Despite the short-term uncertainty, though, now is not the time for investors to be on the sidelines — at least not those with long-term time horizons.Â
The recent volatility has created plenty of great buying opportunities for Canadian investors.
Iâve put together a list of three top TSX stocks to add to your watch list this month.Â
TSX stock #1: goeasy
The high-interest-rate environment has taken a massive blow on what has been an incredibly dependable growth stock over the past decade.
Shares of goeasy (TSX:GSY), the consumer-facing financial services provider, have been cut in half from all-time highs set in late 2021. Still, the growth stock is up a market-crushing 160% over the past five years.
Itâs only a matter of time before goeasy sees demand return. Interest rates will normalize, as will inflation, ultimately leading to an increase in discretionary spending. It may take time, but thereâs no reason to believe that goeasy won’t eventually be back to its market-beating ways.
Patient investors looking to add some growth to their portfolios should seriously consider taking advantage of this bargain price.
TSX stock #2: Northland Power
goeasy isnât the only stock thatâs had a rough past couple of years. The renewable energy sector as a whole has been on the decline since early 2021.
Shares of Northland Power (TSX:NPI) are down more than 30% since the beginning of 2021. Excluding dividends, the renewable energy stock has returned just about the same amount of growth as the S&P/TSX Composite Index over the past five years.
As a huge bull on the renewable energy space, Iâve got a few discounted stocks on my watch list, including Northland Power.
Similar to with goeasy, it may take time for Northland Power to return to delivering market-beating gains. But at least in the meantime, shareholders can benefit from a high-yielding 4% dividend at todayâs stock price.
TSX stock #3: Descartes Systems
The last pick on my list isnât trading at a discount like the first two companies. Instead, shares of Descartes Systems (TSX:DSG) are trading close to all-time highs today.
The tech stock has been on a steady rise over the past year. Shares are up close to 30% over the past 12 months and more than 150% over the past five years.
As a logistics and supply chain solutions provider, itâs understandable why Descartes Systems may not be a household name for all investors. But when you zoom out and look at the growth stockâs performance over the past two decades, not many TSX stocks can compete with Descartes Systemsâs track record.
If youâre willing to hold for the long term, thereâs absolutely nothing wrong with buying a top-quality business while itâs trading at all-time highs. Descartes Systems is in a prime position to continue delivering market-beating gains for many more years.
The post Ready to Invest With $5,000? 3 Stocks for June 2023 appeared first on The Motley Fool Canada.
Before you consider Descartes Systems Group, 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 May 2023… and Descartes Systems Group 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 23 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks
* Returns as of 5/24/23
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- 5 Stocks You Can Confidently Invest $500 in Right Now
- My Top 5 Stock Picks for June 2023
- How Much to Invest to Get $3,000 in Dividend Payouts Every Year
- Is goeasy Stock a Buy After its Q1 Earnings?
- The 2 TSX Stocks Iâd Buy With $1,000 Today
Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends Descartes Systems Group. The Motley Fool has a disclosure policy.