CGX:CC - 3 Stocks to Buy Today and Hold for the Next 5 Years
2023-07-06 15:00:00 ET
After the market sell-off over the last few years and considering all the uncertainty that still exists today, there are many high-quality stocks to buy now that have significant long-term growth potential. What’s more, they continue to trade ultra-cheap.
Therefore, while these stocks continue to offer investors so much value, now is the time to take advantage of the discounts and buy stocks that you can hold for years.
Not only do investors have the potential to earn substantial gains as these stocks eventually recover and rally back to fair value. If you can focus on buying stocks with attractive growth potential as well, the total returns on investment could be astronomical.
So if you’re looking for some of the top Canadian stocks that you can buy today and hold for at least the next five years, here are three of the best to consider.
A top healthcare tech stock with massive growth potential
One of the best companies to buy in Canada, regardless of its market price today, is WELL Health Technologies ( TSX:WELL ), the rapidly growing healthcare tech stock.
WELL has already proven for years what an incredible investment it can be. It has been growing rapidly by acquisition, as well as generating attractive organic growth. However, it’s also consistently outpacing analyst expectations as it expands its business rapidly.
So the fact that this top growth stock also trades considerably undervalued makes it one of the best stocks you can buy today.
After growing its revenue by over 88% last year, analysts still expect WELL to increase sales by 23% this year. Furthermore, as it continues to expand and scale its business WELL’s profitability is constantly improving.
Therefore, with the stock trading at a price-to-sales ratio of just 1.5 times, well below its three-year average of 5 times, and with WELL only trading at 14.8 times its expected earnings over the next four quarters, it’s easily one of the best stocks you can buy today.
An impressive growth stock you’ll want to buy today
In addition to WELL, another impressive growth stock that also trades unbelievably cheap is goeasy ( TSX:GSY ), the specialty finance stock.
goeasy’s business has been growing at an unbelievable pace over the last few years, and on top of this rapid growth, the stock has been highly profitable.
This impressive performance has led to its revenue increasing by 67% in just the last three years and its normalized earnings per share (EPS) growing by over 123% during that stretch.
With goeasy, though, it’s somewhat understandable that the stock has been impacted and sold off in the current environment. With a potential recession on the horizon, investors are concerned about how goeasy could be impacted.
However, with that being said, for years, goeasy has managed its loan book well and kept charge-off rates low. Therefore, considering how well it manages its business and how much long-term growth potential it continues to offer, it’s certainly one of the best stocks you can buy today.
In fact, goeasy currently trades at a forward price-to-earnings (P/E) ratio of just 7.9 times, well below its three- and five-year averages of 11.4 and 10.5 times, respectively.
So if you’re looking for a high-potential stock that you can buy today and hold for years, goeasy is certainly one you’ll want to consider.
A top Canadian stock with significant recovery potential
Lastly, if you’re looking for top stocks to buy today and hold for years, Cineplex ( TSX:CGX ) is another high-quality candidate.
Cineplex stock is still trading ultra-cheap after the impacts on the company as a result of the pandemic. However, 2023 is the year when the film industry is finally recovering, giving Cineplex tremendous potential to recover in the short term and continue growing its business over the longer term.
In fact, with Cineplex trading below $9 a share, it’s trading at just 8.9 times its expected earnings in 2024. That’s much cheaper than the 26.3 times forward P/E ratio it averaged through 2019, the last full year of the pandemic.
So while this high-potential recovery stock continues to trade so cheaply, it’s easily one of the best Canadian stocks that you can buy now and hold for years.
The post 3 Stocks to Buy Today and Hold for the Next 5 Years appeared first on The Motley Fool Canada .
Fool contributor Daniel Da Costa has positions in Goeasy and Well Health Technologies. The Motley Fool recommends Cineplex. The Motley Fool has a disclosure policy .
2023