Yahoo Finance Volatile Market? Carpe Diem With These Stock Deals Today
Written by Jitendra Parashar at The Motley Fool Canada
Growing macroeconomic concerns are keeping the stock market volatile in the post-pandemic era. And if you’re a new investor, it’s natural to be afraid of high volatility. While a turbulent market could be a concerning factor for short-term traders, successful long-term investors often wait for a correction in share prices amid volatility to buy they’re some fundamentally strong companies at a bargain. That’s one of the reasons why temporary market uncertainty could be an opportunity in disguise, especially if you remain focused on growing your wealth in the long term.
In this article, I’ll highlight two of the best TSX stocks you can buy today to expect outstanding returns on your investments in the long run without worrying about near-term volatility.
My first TSX stock pick for May 2023
Aritzia (TSX:ATZ) is one of my favourite TSX stock picks you can consider right now, as it looks cheap after a recent correction in its share prices. It’s a Vancouver-based design house and apparel retailer with a market cap of $4.1 billion, which trades at $35.97 per share with 24% year-to-date losses.
Its consistently expanding presence in the United States market and growing e-commerce business have helped Aritzia post strong financial growth in recent years. In the fiscal year ended in February 2023, the everyday luxury clothing company’s sales jumped 46.9% YoY (year over year) to a record $2.2 billion with the help of a solid 65.8% jump in its U.S. market revenue. In addition, ATZ also registered a strong 54% increase in its active users in the U.S., growing its footprint in the strategically important geography.
Although foreign exchange headwinds and high inflation pressurized Aritzia’s profit margins last year, these temporary negative factors are unlikely to have a major impact on its long-term financial growth trends. That’s why the recent dip in this TSX stock could be an opportunity for long-term investors to buy it at a bargain.
And a TSX stock that could fly high in the long term
The second TSX stock you may want to buy right now is Air Canada (TSX:AC). After losing 60% of its value in the previous three years, AC stock currently has a market cap of $7.7 billion, as it trades at $21.46 per share with slightly more than 10% year-to-date gains.
The Canadian flag carrier’s share prices have been under pressure since the COVID-19-related shutdowns and restrictions badly affected air travel demand. However, you can expect to see a notable recovery in Air Canada’s financials in the coming quarters, as the demand continues to improve.
In the first quarter of 2023, Air Canada registered a solid 89.9% YoY growth in its total revenue to $4.9 billion, and its adjusted quarterly losses reduced to $0.53 per share from $2.51 per share a year ago. As the summer travel season has just begun, the airline company’s operational performance has already showcased significant movements. Moreover, strong advance bookings and recent declines in fuel prices could help Air Canada post stronger-than-expected results in the coming quarters and drive its stock higher.
The post Volatile Market? Carpe Diem With These Stock Deals Today appeared first on The Motley Fool Canada.
Should You Invest $1,000 In Air Canada?
Before you consider Air Canada, you'll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in May 2023... and Air Canada wasn't on the list.
The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 23 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks * Returns as of 5/24/23
More reading
The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.
2023
