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3 Remarkably Cheap TSX Stocks to Buy Right Now

edit Sale sign, value, discount
Image source: Getty Images

Written by Amy Legate-Wolfe at The Motley Fool Canada

The market continues to recover this month, and we’re still heading towards the holiday season. Some stocks saw an increase over the weekend as the market responded to Black Friday and Cyber Monday sales. However, others still offer quite the opportunity as cheap TSX stocks to consider buying today.

So today, let’s look at some recovering cheap TSX stocks that investors can buy right now.

goeasy

One of the best options for investors to consider right now is goeasy (TSX:GSY). The loan provider has been making a massive comeback over the last few months, receiving “buy” recommendations from analysts across the board.

Goeasy stock reported record earnings quarter after quarter, but the latest third quarter results surged past estimates. Loan originations rose 13% to $722 million for the quarter, with the loan portfolio up 33% to $3.4 billion as well. Revenue increased 23%, reaching $322 million, with its diluted earnings per share (EPS) up 35% to $3.87.

Yet right now, shares trade at just 11.1 times earnings, and 1.9 times sales. Further, GSY trades at just a 6.9 times enterprise value over earnings before interest, taxes, depreciation and amortization (EV/EBITDA), a huge deal in this case. Finally, it offers a 2.95% dividend yield, which remains higher than its five-year average of 2.91%. So now is certainly the time to consider cheap TSX stocks like goeasy stock.

Canadian Tire

Another of the cheap TSX stocks I would consider is Canadian Tire Corporation (TSX:CTC.A). This stock fell dramatically recently as the company announced lay offs to help with the missed earnings. Yet in this case, there is now a huge opportunity. Perhaps more so than for goeasy stock.

While goeasy stock is still trading up, Canadian Tire stock is down. This comes after a third quarter that saw sales drop year over year across the board. However, the company continues to expand its Triangle Rewards program. Further, the holiday season is upon us. Black Friday likely saw a major increase in spending, and there is more coming as Canadians seek out items for themselves and others.

So right now you can get a deal while shares trade at just 14.4 times earnings, and 0.45 times sales. It also offers a significant 8.2 EV/EBITDA! And yet with shares down 7% in the last year, you can grab a dividend yield at 5.09%, which was recently increased as it is far higher than the 3.16% five-year average.

Lightspeed stock

Finally, Lightspeed Commerce (TSX:LSPD) is a tech stock that remains incredibly undervalued based on its performance. The company continues to put out profitable earnings reports, and yet investors aren’t quite convinced enough to latch on. At least, not yet. That’s why now is a great time to consider this among other cheap TSX stocks.

The company also had an incredible third quarter that soared past earnings estimates. In fact, the company saw a 25% increase in total revenue to $230.3 million year over year and improved its net loss to a positive adjusted EBITDA in the quarter. Furthermore, its gross payment volume (GPV) and gross transaction volume (GTV) increased to $5.9 billion (up 59%) and $23.5 billion respectively.

Lightspeed stock went on to increase its outlook for 2024. It now hopes to achieve revenue between $232 and $237 million in the third quarter, with adjusted EBITDA at $2 million. Further, for 2024, forecasts are to hit revenue between $890 and $905 million, and break even or outperform adjusted EBITDA. In fact, it wouldn’t be unheard of for the company to break $1 billion in revenue for the year. And once that headline hits, you’ll have wished you bought at these levels.

The post 3 Remarkably Cheap TSX Stocks to Buy Right Now appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Canadian Tire?

Before you consider Canadian Tire, you'll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in November 2023... and Canadian Tire wasn't on the list.

The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 24 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 11/14/23

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Fool contributor Amy Legate-Wolfe has positions in Goeasy and Lightspeed Commerce. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

2023