Advertisement
Canada markets open in 5 hours 15 minutes
  • S&P/TSX

    21,837.18
    -12.02 (-0.06%)
     
  • S&P 500

    5,149.42
    +32.33 (+0.63%)
     
  • DOW

    38,790.43
    +75.63 (+0.20%)
     
  • CAD/USD

    0.7369
    -0.0020 (-0.27%)
     
  • CRUDE OIL

    82.54
    -0.18 (-0.22%)
     
  • Bitcoin CAD

    87,427.00
    -4,799.11 (-5.20%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,158.20
    -6.10 (-0.28%)
     
  • RUSSELL 2000

    2,024.74
    -14.58 (-0.72%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • NASDAQ futures

    18,188.00
    -43.50 (-0.24%)
     
  • VOLATILITY

    14.52
    +0.19 (+1.33%)
     
  • FTSE

    7,722.55
    0.00 (0.00%)
     
  • NIKKEI 225

    40,003.60
    +263.20 (+0.66%)
     
  • CAD/EUR

    0.6789
    -0.0003 (-0.04%)
     

3 Undervalued Stocks to Buy Before it’s Too Late

Hand writing Time for Action concept with red marker on transparent wipe board.

As the economic recovery comes into question via the rise of the Delta variant, investors may be on edge. And rightly so. Looking for undervalued stocks is one such way to gain an edge on the market as well as gain defensiveness.

These three stocks are some of the best value picks on the TSX today. Let’s dive in!

Top undervalued stocks: Alimentation Couche-Tard

I’ve been pounding the table for some time on Alimentation Couche-Tard (TSX:ATD.B) as a top value pick. The company’s valuation multiple of only 16 times earnings certainly makes this company look like one of the best undervalued stocks on the market. Indeed, relative to Couche-Tard’s growth potential, this is even more true.

ADVERTISEMENT

The company’s continued consolidation of the gas station and convenience store sector has turned Couche-Tard into a $54 billion company. This is no small Canadian company. Rather, Couche-Tard is a global player in this space.

I think the company’s strong fundamentals and balance sheet room for more acquisitions should bode well for investors over the long term. Accordingly, this is a company I’ll continue to have on my radar moving forward.

Manulife

As far as undervalued stocks in the insurance sector go, Manulife (TSX:MFC)(NYSE:MFC) is one of the best.

This company’s profits have been rising at a time when many investors were questioning the impact of lower-for-longer interest rates. Indeed, headwinds related to slower economic activity and higher claims may persist. However, given the risk higher interest rates present to the broader market (and growth stocks in particular), Manulife is an excellent portfolio hedge.

This is also a stock with a tremendous valuation. Currently, investors can pick up shares of Manulife for only nine times earnings. That’s dirt cheap compared to the company’s peers and the overall market.

Kirkland Lake Gold

For those seeking defensive exposure to undervalued stocks, Kirkland Lake Gold (TSX:KL)(NYSE:KL) is a great pick. As a gold miner that’s essentially debt-free and spewing out cash flow at an incredible rate, investors really don’t have a reason not to load up on this gem.

It’s my view that Kirkland Lake is one of the best gold miners in the world right now. The company’s balance sheet is pristine, with essentially no debt. And the company expects to invest in production increases using existing operating cash flow to do so. That’s a win-win for investors.

It think Kirkland Lake’s defensive orientation provides one of the best risk-return prospects for long-term investors. Accordingly, those looking for an undervalued stock with tonnes of upside potential can’t go wrong owning Kirkland Lake shares at these levels.

The post 3 Undervalued Stocks to Buy Before it’s Too Late appeared first on The Motley Fool Canada.

Free 5G stock picks from The Motley Fool

Invest in 5G Stocks for the Long Term

Our Stock Advisor Canada analysts have put together a special report with 5 of our favorite 5G stocks. Get the report today for free!

Get Your Free Report!

More reading

Fool contributor Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC.

2021