As we move closer to the holiday season and the beginning of yet another potential Santa Claus rally, Canadian investors looking to put a bit of extra cash to work on stocks may wish to do so sooner rather than later.

While stocks could easily sink lower after you've purchased a big chunk of shares (remember that the stock market doesn't know when you bought), I'd argue that it makes sense to invest gradually in the bargains you see rather than wait for the lowest possible price and risking staying sidelined, perhaps for a lengthy duration.

While cheap stocks on your watchlist can get much cheaper going into December, I'd argue that today's multiples make enough sense to start doing a bit of buying right here and now. Here are three of my favourite TSX stocks worth buying (or watching) at current levels.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) stock has been really hot following the U.S. presidential election. As the chase to buy 7-Eleven's parent continues, the stock could be a major mover in either direction.

Undoubtedly, at this juncture, it looks like a lack of a deal would be a massive upside catalyst that could take shares back above $86 per share.

At the same time, I do think there's a high chance of a deal being struck. However, how ATD stock will react remains to be seen. Arguably, it's already been penalized for the debt it'll have to take on to fund such a blockbuster. Either way, I believe that investors are discounting the synergies to be had over the next three to four years.

For now, it's all about those looming quarterly numbers. With relatively modest expectations, I do view ATD stock as intriguing ahead of the big reveal. Further, we may get more clarity on progress with the proposed 7-Eleven deal.

Sure, creating value from such a massive deal will take a lot longer. That said, this is Couche-Tard we're talking about, a company that knows how to extract long-term value from almost every move it seeks to make. As such, investor patience, I believe, will be rewarded. Either way, I view the stock as a cheap defensive growth play at 19.9 times trailing price-to-earnings (P/E) going into December.

Magna International

Magna International (TSX:MG) is a riskier deep-value play for investors willing to wait out the current downcycle. The auto-parts maker is in a slump, but as next-generation vehicles look to roll out in a big way over the next five years (think autonomous autos, EVs, and hybrids), I do view Magna as an eventual beneficiary.

The stock has lost just north of 50% of its value and boasts a respectable 4.3% dividend yield. While the firm recently lowered its guidance, I'd not bet against the longer-term trajectory as it looks to move past industry headwinds. Though MG stock could stay a dud for longer, I must say I'm enticed by the 11.6 times trailing P/E ratio.

Nutrien

Nutrien (TSX:NTR) is another battered bargain that's close to multi-year depths. At $63 and change, the agriculutral commodity producer trades at 11.9 times forward P/E to go with a 4.6% dividend yield.

Undoubtedly, you're getting a low price for a solid dividend, but as agriculutre demand continues moving through headwinds, it's tough to tell when the name will reverse course. It's a falling knife that's likely headed lower over the nearer term. With earnings sagging in the third quarter, only strong-stomached contrarians should get behind the name right here.

Of the trio presented in this piece, NTR stock is arguably the riskiest (and perhaps the cheapest) option.