Yahoo Finance 2 of the Best Value Stocks to Buy and Hold Until 2030
Written by Daniel Da Costa at The Motley Fool Canada
We all know that it’s crucial to buy low and sell high, and that these market environments are the best opportunities to do so. However, sometimes that can be easier said than done. It’s crucial to keep a long-term outlook, though, and look at the big picture, which is why now is a perfect time to buy some of the best value stocks on the market.
We all want to buy stocks with the best discounts today. However, because we’re planning to hold for the long run, while the discount is important, it’s even more important to find a high-quality business that can continue to grow its operations rapidly over the coming years.
With that in mind, if you’re looking to take advantage of this environment and buy stocks that you can hold for years to come, here are two of the best value stocks on the market today.
A top Canadian retail stock
If you’re looking to buy some of the best stocks in Canada that can grow for years to come but also offer attractive value today, then Aritzia (TSX:ATZ) is one you’ll surely want to consider.
Aritzia is a vertically integrated women’s fashion retailer that has been rapidly growing its sales for years now. The stock even managed to grow through the pandemic, even after the initial lockdowns impacted its business significantly.
In fact, in the five years from the end of its fiscal 2017 to the end of its fiscal 2022 year (which ended in February), Aritzia’s sales grew by roughly 124%. Furthermore, over that stretch, its gross profit increased by nearly 150%, and its net income swung from a loss in 2017 to a gain of more than $150 million in 2022.
Aritzia has an insane runway for growth south of the border, as roughly two-thirds of its locations are located in Canada. However, it also has significant growth potential due to its impressive e-commerce platform.
Therefore, while Aritzia trades well off its highs and at a discounted price, there’s no question it’s one of the best value stocks to buy now. At the start of the year, Aritzia was trading at a forward price-to-earnings (P/E) ratio of more than 42 times.
And even after its expected forward earnings have been increased since it reported solid first-quarter earnings for fiscal 2023, the stock has still lost value, as it now trades at a forward P/E ratio of just 27.8 times.
Therefore, while Aritzia offers such tremendous value, it’s undoubtedly one of the best stocks to buy now.
One of the best growth stocks to buy while it offers tremendous value
Another high-quality stock that trades at an appealing discount, especially considering its long-term growth potential, is Jamieson Wellness (TSX:JWEL).
Jamieson has been one of the best stocks in Canada to buy for a while, so the fact that it offers such impressive value today makes it one of the top stocks to add to your watch list.
Jamison is a manufacturer, wholesaler, and retailer of vitamins, minerals supplements, and other health products. This makes its core business highly defensive, which is another reason it’s such a top stock to buy today.
Furthermore, Jamieson has proven for years that it can constantly find organic growth, and now after making a crucial acquisition earlier this year, it has even more organic growth potential over the coming years.
So, not only is Jamieson one of the best value stocks to buy in general, but it’s the perfect defensive growth stock to consider in this economic and market environment.
Plus, it isn’t just the share price trading at a discount. As of Wednesday’s close, Jamieson was trading at an enterprise value to earnings before interest, taxes, depreciation, and amortization ratio of just 11.9 times. That’s well below its three-year average of 16 times.
So, while this high-quality stock trades at a noticeable discount, it’s easily one of the best value stocks to buy now.
The post 2 of the Best Value Stocks to Buy and Hold Until 2030 appeared first on The Motley Fool Canada.
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Fool contributor Daniel Da Costa has positions in ARITZIA INC. The Motley Fool has positions in and recommends ARITZIA INC.
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