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the TSX Composite The benchmark index has erased around 8.3% of its value in June so far, extending its quarter-to-date losses to more than 13%. Consistently high inflationary pressures and fears of a near-term recession are haunting investors and fueling the market clearing. However, it is almost impossible for anyone to predict a recession and future market trends. That is why no one can say with certainty that the stock market will continue to fall in the coming months.
Invest $5,000 in stocks amid market sell-off
While the current market sell-off has wiped out billions of dollars in market value for several companies, it could be an opportunity for new stock investors to enter the market to build their long-term wealth. If you don’t have lots of extra money to invest in stocks right now, that’s totally fine. It’s not a bad idea to start your investment journey with as little as $5,000 if you don’t want to regret later that you didn’t buy fundamentally sound stocks at a great bargain. Let’s look at two of the best Canadian stocks to buy now that look really cheap and can deliver excellent returns over the long term.
A massive growth stock to buy amid market correction
While the general market sell-off started recently, a collapse of the tech sector started months ago. That’s why it makes sense for investors to buy some high-growth tech stocks with strong fundamentals amid this market correction. Trading at the speed of light (TSX:LSPD)(New York Stock Exchange: LSPD) is a Montreal-based software company that is primarily focused on providing its innovative omnichannel commerce platform to merchants. Its shares have plunged 82% in the past nine months to $29 a share.
In its fiscal year 2022 (ending March), Lightspeed registered a solid 147% year-over-year jump in total revenue to $548.4 million. During the fiscal year, its subscription revenue increased 108% year over year, while its transaction-based revenue saw massive positive growth of approximately 218% year over year. As businesses around the world continue to reopen in the post-pandemic world, demand for Lightspeed’s trading platform is likely to increase further. That’s why I expect this Canadian growth stock to continue to report strong sales growth, which should help its stock recover considerably.
Another stock with solid growth prospects
The second growth stock that I think is worth buying amid the ongoing market sell-off is Blackberry (TSX:BB)(New York Stock Exchange: BB). While its recent sales growth trend may not seem very impressive, I expect BlackBerry’s finances to start growing at an exponential rate in the next few years. Let me explain why.
BlackBerry provides enterprise cybersecurity software solutions to organizations around the world. In recent years, however, the technology company’s interest in developing advanced technological solutions for futuristic vehicles has increased significantly. Its developing platform IVY has the potential to make it one of the most prominent providers for manufacturers of electric and autonomous vehicles. The platform aims to enable automakers to securely collect real-time data from vehicle sensors and use it to provide better functionality and features to vehicle drivers and passengers.
Despite its strong fundamental outlook, BlackBerry shares have plunged more than 58% in the past year to $6.89 a share as the market sell-off continues. That’s why long-term investors may want to consider buying it right now.
silly end result
If you want to build up your hard-earned savings, this could be the perfect time to start investing in stocks, as the market sell-off continues to drive stocks lower. Investing $5,000 or more in these fundamentally strong stocks after their big correction could prove to be a wonderful strategy for long-term investors to grow wealth quickly.