LSPD:CC - June's Hidden Gems: 3 Undervalued Canadian Stocks Ready to Shine
2023-06-20 11:00:00 ET
Canadian investors haven’t fared nearly as well as their southern neighbors have in 2023. The Canadian-based S&P/TSX Composite Index is barely positive on the year while the S&P 500 is up nearly 15%.
On the bright side, at least for long-term investors, the TSX has no shortage of high-quality stocks trading at a discount.
With that in mind, I’ve reviewed three Canadian companies that are currently trading at what I’d argue are bargain prices. If you’re looking to put some money to work in the Canadian stock market this month, I’d strongly suggest looking at these three stocks.
goeasy
Growth investors should have this under-the-radar stock near the top of their watch lists right now.
Shares of goeasy ( TSX:GSY ) are down 50% from all-time highs that were set towards the end of 2021. The high interest rate environment has understandably hurt demand for the consumer-facing financial services provider.
Still, the growth stock has largely outperformed the broader Canadian stock market over the past five years, gaining a market-crushing 150% over that time span.
Long-term investors that are able to wait out this high interest rate environment won’t want to miss this buying opportunity. We may not see goeasy trading at a discount like this again for a long time.
Lightspeed Commerce
After a wild two years following the COVID-19 market crash, shares of Lightspeed Commerce ( TSX:LSPD ) are trading at just about the same price as when the company went public in 2019.
Alongside many other tech stocks, shares surged in 2020 and most of 2021. But today, the tech stock is down more than 80% below all-time highs. It’s been a staggering fall for shareholders that were not long ago treated to multi-bagger returns in a very short period of time.
Despite the massive selloff, the company itself continues to focus on growth. Providing a wide range of solutions to both brick-and-mortar and e-commerce retailers, Lightspeed has grown into a one-stop shop for small- to medium-sized businesses.
In addition, Lightspeed remains focused on expanding its international presence, which is a major reason for the company’s ability to continue growing revenue at a double-digit rate.
It will take time for Lightspeed to return to all-time highs. The stock pulled forward a significant amount of growth during the pandemic, which it is now paying the price for.
Investors that don’t mind the volatility should have this beaten-down tech company on their radar.
WELL Health Technologies
WELL Health Technologies ( TSX:WELL ) has been on a similar ride as Lightspeed over the past couple of years.
After coming off a year in 2020 where the stock returned more than 400%, shares have since dropped close to 50% since all-time highs in early 2021.
A sudden rise in demand for telehealth services led to massive gains in 2020 for WELL Health. But as demand gradually began decreasing, so too did its stock price.
Shares still remain far higher than pre-pandemic levels but at a significant discount from all-time highs.
Those bullish on the long-term rise of the telehealth industry should consider picking up shares before they’re back to all-time highs.
The post June’s Hidden Gems: 3 Undervalued Canadian Stocks Ready to Shine 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 .
2023