LSPD:CC - 3 Struggling Stocks to Buy at a Discount
2024-01-03 09:30:00 ET
The Canadian stock market closed out the 2023 year with a bang. The S&P/TSX Composite Index skyrocketed more than 10% from late October through the end of the year. The late surge put the index up about 8% on the year. While that may have trailed the U.S. stock market’s return in 2023, a nearly 10% gain is certainly a welcomed rebound from the loss-filled year of 2022.
As the Canadian stock market continues its rise to return to all-time highs, the TSX remains loaded with buying opportunities. Investors may need to be patient, but there’s plenty of value to take advantage of right now.
With that in mind, here’s a list of three top stocks that are all trading at bargain prices today.
WELL Health Technologies
Not many TSX stocks outperformed WELL Health Technologies ( TSX:WELL ) in 2020. The sudden rise in demand for the company’s services sent the stock soaring more than 400% in 2020 alone. After peaking in early 2021, though, the stock has struggled to return to all-time highs. Shares were up close to 40% in 2023 but have still been down more than 50% since the beginning of 2021.
As a virtual health services provider, it wasn’t surprising to see the stock pullback after the pandemic ended. That doesn’t mean, though, that there’s not a long-term growth play here.
If you’re bullish on the long-term rise in telemedicine, this is a discount you’ll want to take advantage of.
Air Canada
Shares of Air Canada ( TSX:AC ) went in the opposite direction, as WELL Health during the early days of the pandemic. The airline stock plummeted in early 2020 and continues to trade more than 60% below pre-pandemic levels. That puts shares at a loss of 30% over the past five years. In comparison, the broader Canadian stock market has returned 45%, excluding dividends.
The airline industry is a cyclical one; there’s no question about it. It’s worth noting, though, that Air Canada is one of the few North American airlines that has been a consistent market beater in the past.
If you’re willing to be patient, there could be a serious value play here to load up on Canada’s largest airline at a major discount.
Lightspeed Commerce
Lightspeed Commerce ( TSX:LSPD ) started 2023 out slowly but made up for lost time in the last two months of the year. A 60% return from late October to the end of December put the tech stock up close to 45% on the year. Even so, shares are still down a whopping 80% from all-time highs.
Like many of its tech peers, Lightspeed has dealt with its share of headwinds since late 2021. After such a sudden run-up following the COVID-19 market crash, a significant pullback at some point was inevitable.
Putting the short-term headwinds aside, the long-term growth opportunity for Lightspeed remains as present as ever. Two key reasons why the company has been able to continue driving double-digit revenue growth rates, despite the challenging environment are its robust cloud-based offering and growing international presence.
Risk-averse investors should proceed with caution. I wouldn’t bank on the volatility slowing down anytime soon. The upside is multi-bagger growth potential.
The post 3 Struggling Stocks to Buy at a Discount appeared first on The Motley Fool Canada .
Fool contributor Nicholas Dobroruka has positions in Lightspeed Commerce. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy .
2024