Got $1,000? A Stock to Buy Now While It’s on Sale

If you’ve got an extra $1,000 or so that you’ve been meaning to put to work but just haven’t got around to it, maybe due to the recent spike in volatility, AI unknowns, or the crisis going on in the Middle East, perhaps it’s time to give some of the recently corrected names a closer look. Of course, it’s so incredibly easy to tell yourself you’ll wait for a dip before putting new money into the markets. When that dip actually arrives, though, suddenly it becomes hard to actually follow through and hit that buy button.

Have the circumstances changed? At the macro level? Perhaps. The big thing that’s changed is investor willingness to buy, and that alone might cause you to second-guess yourself. If most others around you are running for the hills, perhaps it’s the prudent move to hold off and wait things out, especially if correction calls grow louder. Indeed, it’s easy to think you might be missing something when the market goes upside-down.

That said, I still think that long-term investors shouldn’t get dragged into the game of near-term trading. At the end of the day, it’s your estimate of a company’s intrinsic value that matters most. Even the smart folks you heard on a Podcast do not have a crystal ball.

So, with that, you should put in the homework rather than copying someone else’s, especially when the market seems to be in the earlier stages of cratering. Either way, in this piece, we’ll look at two stocks that look to be on sale and might be worth buying with an extra $1,000 in a TFSA or elsewhere. Of course, it could be scary to buy now, but sometimes, you just have to pick up something while the sale is on and fear is rampant.

Dollarama

Dollarama (TSX:DOL) was built to win in an environment like this, where everything is getting ridiculously expensive and inflationary pressures could move higher again. While not much has changed about the value proposition, I do think that the overbought stock was overdue for a correction. And after Tuesday’s sell-off, that correction has finally arrived, with shares down 9.6% in a single session.

Of course, it’s hard to jump into the deep end after such a vicious implosion following a quarterly report that clearly disappointed. And while another brutal day or two could follow, I think it’s time to think about nibbling into the name now that it is off more than 18% from its all-time high. 2026 has been terrible so far, but the long-term roadmap is intact. Management really does sound like they’ll only raise prices as a last resort. And if they can make it work, they’re a prime share-taker.

Could the rising energy prices cause even more pressure on Dollarama’s bottom line? Possibly. But the retailer’s rivals will probably feel it even more. Either way, I think Dollarama has exceptional cost managers, and until that changes, customers will still get some of the best deals in town. And that is bound to keep customers moving through its doors.

At 35.8 times trailing price-to-earnings (P/E), shares of the defensive growth darling are finally on sale. And they might not stay marked down forever.

The post Got $1,000? A Stock to Buy Now While It’s on Sale appeared first on The Motley Fool Canada.

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More reading

• 3 TSX Dividend Stocks for Investors Who Want to Stop Watching the Market
• 3 Stocks to Buy and Hold Forever: A Long-Term Play for Your Portfolio
• How to Turn the 2026 TFSA Contribution Into $70,000 (or More)
• 3 Stocks I’d Confidently Buy and Hold Well Into 2031
• Oil Prices Are Rewriting Canada’s Inflation Outlook: Here’s How to Adjust Your Portfolio

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama. The Motley Fool has a disclosure policy.