3 shares to buy before the end of the discount

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The S&P/TSX Composite Index is still down 9% from its yearly high, and its latest bout of recovery is already out of steam. It can be just a temporary pause before the market turns bullish again, or the market can fluctuate for a while before going up or down in a set trend.

Either way, there are still plenty of discount stocks in the market, and you might want to consider buying three before they fully recover.

An EV company

Electric vehicles (EVs) are the next big thing in the automotive industry, and they are already a mature product competing with conventional vehicles in different segments, including mass transportation.

This is an exciting and potentially promising investment avenue you can get into with companies like Electric Lion (TSX:LEV)(NYSE:LEV). School buses are the company’s specialty, and it is the only such manufacturer (in this particular vehicle segment) in North America.

It also manufactures all-electric commercial trucks. Another feather in the company’s hat is that it’s more prevalent in the EV “ecosystem” than an automaker. Its business divisions include Electric Vehicle Financing Solutions, Charging Infrastructure and Telematics.

The stock has only gone down since its inception, but that’s partly down to timing. It joined the market in May 2021, and after a brief upward move, it started to decline and is currently trading at a 72% discount to its day one closing price.

A real estate and technology company

Real Questions (TSX: REAL) offer the overlap of two sectors: real estate and technology. However, in its performance so far (or at least over the past five years), the title hasn’t kept up faithfully either. But the stock has shown robust growth potential under good market conditions. It grew by more than 250% in 2019 alone, and post-pandemic growth has been even more phenomenal.

The fall was equally impressive, and it is still trading at an 81% discount from its 2020 peak. And while it has shown signs of recovery, you can take this market optimism with a grain of salt. salt.

As a platform for mortgage and insurance field agents, its business could suffer due to the housing crisis in Canada. But the financial blow could be mitigated by its activities in the United States. And once the stock finally begins to recover, the gains from the current discounted price could be substantial.

An e-commerce giant

Shopify (TSX:SHOP)(NYSE:SHOP) is one of the most heavily discounted stocks currently trading on the TSX. The e-commerce giant that once eclipsed Royal Bank of Canada as the market’s biggest stock is trading at a 79% discount to its 2021 high. And if you consider its current trajectory, the stock may fall further.

The company faced a harsh reality in recent quarters as pandemic revenue spikes began to decline.

But now that the e-commerce market is normalizing again and may start growing again at its usual pre-pandemic rate, Shopify’s stock may rise again at its previous rate. So, buying now at the current discounted price and taking advantage of the next long-term upswing can result in windfall gains.

Insane takeaways

These three may not make the cut if you’re looking exclusively undervalued stocks. But if you’re happy with discount stocks that can have fantastic growth potential under the right circumstances, all three stocks should be on your radar.

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