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the S&P/TSX Composite Index, Canada’s benchmark equity index, broke above the 22,000 mark on March 22, 2022, hitting a new all-time high before stabilizing again. The benchmark stands at 21,977.83 at the time of writing, just within the range of its last all-time high.
Its current levels translate to gains of 3.49% year-to-date and 17.41% YoY, driven by growth in the energy and materials sectors.
Discovery undervalued stocks in a market environment that could arguably be overbought seems like a tough proposition. However, all TSX shares are trading at record valuations. Value-seeking investors can find high-quality stocks trading at a discount in the stock market today, provided they know where to look.
Today I’m going to discuss two TSX stocks that are trading at a discount that you might consider adding to your self-directed portfolio if you’re looking for value stocks that can rise to generate growth. of wealth.
Shopify Inc. (TSX:SHOP)(NYSE:SHOP) is a $110.74 billion market capitalization e-commerce giant headquartered in Ottawa. The Canadian company has been one of the biggest success stories among Canadian growth stocks since its stock market debut.
It provides crucial e-commerce services to merchants around the world. The pandemic has seen a massive boom in the e-commerce industry, and Shopify stock was well positioned to capitalize on the tailwinds.
The tech meltdown combined with the company’s announcement of lower expected revenue in February 2022 to send its stock price plummeting. Although the slowdown was justified due to the lack of a pandemic-induced increase in its earnings, it hurt investor sentiment.
Shares of Shopify are trading at $878.67 per share at the time of writing, and they are down 58.94% from their all-time high. Tech stocks could be on the road to recovery as momentum in the broader sector picks up. Now could be a good time to invest in its stocks to capitalize on its long-term growth.
Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is a $117.52 billion market capitalization titan among global alternative investment management firms. Toronto-based Brookfield Asset Management has a portfolio that includes infrastructure, renewable energy, real estate and private equity assets.
It generates strong cash flow from its diversified assets and has strong long-term growth prospects.
Shares of Brookfield Asset Management are trading at $71.60 per share at the time of writing, and they are down 8.19% from their all-time high in December 2021. That may not be a big discount compared to Shopify stock. However, BAM stock is more undervalued than beaten like Shopify stock. That could be a steal at its current valuation, given its long-term growth prospects.
Shopify stock made for one riskier investment due to its high growth and high risk nature. You can invest in its stock if you are prepared to bear short-term losses for the long-term gradual gains it can bring.
Shares of Brookfield Asset Management could be a more viable investment for risk-averse Canadians who prefer a safer method of capturing long-term wealth growth.