WELL:CC - 2 Unbelievably Cheap Canadian Stocks to Buy Before the Market Recovers
2023-07-15 10:15:00 ET
In theory, investing seems like it should be easy. You buy Canadian stocks when they’re low or cheap and sell them when they are high after they have recovered or become overvalued.
In reality, though, investing can be a lot more difficult, especially when you factor in the need for patience and the impact emotions can have on decision-making.
We all know many stocks are cheap today, and we all know that the market will recover at some point. However, many investors continue to put off buying stocks if the market continues to sell off further before it recovers.
That might make sense, but it’s not a sure bet, and if the market recovers sooner than expected, these investors could miss out on unbelievable stocks trading at once-in-a-decade discounts.
Therefore, when you identify a high-quality stock to own for years that is trading at a significant discount, it’s far better to take advantage immediately.
And if you have cash today, here are two unbelievably cheap Canadian stocks you’ll certainly want to consider buying before the market recovers.
One of the best Canadian stocks to buy while it’s unbelievably cheap
One of the very best Canadian stocks to buy now, both for its long-term growth potential and its shocking discount, is WELL Health Technologies ( TSX:WELL ).
WELL Health Technologies has a rapidly growing business that owns both physical clinics in Canada as well as several digital health apps and telehealth businesses that operate across North America.
Therefore, considering WELL Health operates in the healthcare sector and considering its portfolio of businesses all have different operations, it’s a well-diversified company and lower risk than many other tech stock peers that also have market caps of just $1 billion or less.
The Canadian healthcare tech stock has become noticeably cheaper since the pandemic ended, which is one of the main reasons it’s a top stock to buy now. However, it also continues to grow at an exceptional pace and, time after time, it’s exceeded analyst estimates.
While much of WELL’s initial growth came from making attractive acquisitions, recently, much of its growth has come organically from these high-potential companies that WELL has recently acquired.
Therefore, WELL continues to have a tonne of growth potential, especially as the healthcare industry continues to see more innovation and a shift to more efficient technology.
So, with WELL Health trading at a forward price-to-sales (P/S) ratio of just 1.4 times, it’s extremely undervalued. For comparison, its three-year average forward P/S ratio is 4.95 times.
Furthermore, with WELL now reporting a profit, it trades at a forward price-to-earnings ratio of just 14.2 times. That’s relatively cheap for many stocks but especially a rapidly growing healthcare tech stock.
If you’re looking to buy Canadian stocks that have years of long-term potential and are trading unbelievably cheap, WELL is certainly one of the best stocks you can consider today.
A top Canadian REIT trading well undervalued
In addition to WELL, another high-quality Canadian stock to buy now that has years of growth potential and is trading well off its highs is Granite REIT ( TSX:GRT.UN ).
Granite is an industrial real estate investment trust (REIT) with warehouses and other industrial properties located across the United States, as well as in Canada, Austria, Germany and the Netherlands.
Industrial REITs like Granite have continued to see an increase in demand in recent years, which has helped Granite to grow rapidly in addition to giving it a tonne of long-term growth potential.
Plus, on top of the growth that the industry has naturally been seeing, Granite is also consistently expanding its portfolio, giving the REIT a tonne of growth potential over the coming years.
Moreover, in addition to the long-term growth potential it offers, Granite is also a Canadian Dividend Aristocrat, as it continues to increase its distribution each year.
Furthermore, with the REIT trading over 25% below its all-time high of more than $105 per unit, the yield has continued to rise and is now upwards of 4%.
Considering what a reliable stock Granite is, as well as its long-term growth potential and attractive yield, while the stock trades unbelievably cheap, it’s easily one of the best Canadian stocks to buy now.
The post 2 Unbelievably Cheap Canadian Stocks to Buy Before the Market Recovers appeared first on The Motley Fool Canada .
Fool contributor Daniel Da Costa has positions in Well Health Technologies. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy .
2023