The Canadian stock market had a solid start to the year, but things have since taken a dramatic turn for investors. Within the first three months of the year, the S&P/TSX Composite Index increased by almost 5%, but it has since started to decline. Currently, the market as a whole has lost about 5% so far this year.
This year’s main investing trend has been volatility. There hasn’t been a lack of uncertainty in 2022, whether it’s been due to inflation, rising interest rates, or geopolitical worries. As a result, short-term stock market fluctuations have been totally unpredictable.
Numerous chances for long-term investors have been made possible by the uncertainties this year. Those who are prepared to put up with short-term volatility may be in line for enormous long-term gains.
High-quality equities are currently trading on the TSX for great discounts. I’ve analysed the top three options that long-term investors would do well to add to their watch lists for the upcoming holidays.
Brookfield Renewable Partners Canadian stock
The opportunity to invest has come for anyone who is optimistic about the long-term growth of renewable energy. On the TSX, investors have a selection of cheap green energy equities.
The largest Canadian supplier of renewable energy is Brookfield Renewable Partners (TSX:BEP.UN), with a market capitalization of around $25 billion. The business has a global reach and provides its clients with a variety of green energy options.
The stock price is down about 20% year to date and 40% from its early 2021 peak. For the past two years, the energy stock has been steadily declining. However, during the previous five years, shares have more than twice the returns of the larger Canadian stock market.
In addition to having a lengthy history of outperforming the market, Brookfield Renewable Partners offers a sizable payout. The dividend yield for the corporation is 4.5% at the stock price of the day.
There aren’t many TSX-listed firms with Brookfield Renewable Partner’s market-beating track record and dividend of over 4%.
Air Canada Canadian stock
Considering that the COVID-19 market fall is still having a significant impact, it can be a very good moment to make an investment in Canada’s largest airline.
Early in 2020, Air Canada (TSX:AC) had a sharp decline of more than 70%. Share prices have increased from the 2022 COVID-19 market crash lows, although they are still much below pre-pandemic levels.
In 2022, we’ll start to notice a sharp increase in demand for travel. I am sure that it won’t be long until Air Canada resumes exceeding the market’s returns.
Shopify Canadian stock
Shopify (TSX:SHOP) wasn’t always the most popular stock on the TSX. But the tech stock has long since given up that top rank after falling by nearly 70% in 2022 alone.
Shopify’s performance this year can be somewhat attributed to the tech industry, which had a difficult year in 2022. Even though revenue growth for the company has slowed recently, there is still plenty of room for expansion in the years to come.
Shopify’s high price appears to have finally caught up with the stock after several years of dominating market-crushing gains since it entered the TSX, giving long-term investors a great entry position.
Shopify stock is up close to 40% since early October, though. If you are looking to pick up shares at a discount, you may want to act fast.