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Canadian Value Investors: Don’t Overlook These 4 TSX Hidden Gems

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Image source: Getty Images.

Written by Amy Legate-Wolfe at The Motley Fool Canada

What if I told you there were value stocks on the TSX today that only the best in the finance biz have discovered? There are certainly many, with most average investors seeking out what’s trending again and again.

Yet this only causes share prices to surge, providing you with more of a chance at loses rather than gains. Today, I’m going to look at four stocks on the TSX today that offer strong value and are just getting started.

Great-West Lifeco

While you might have heard about investing in Great-West Lifeco (TSX:GWO), have you actually invested in it? Honestly, this company is doing great. Shares continue to climb higher, with the stock up 14% in the last year and 26% year to date.

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Great-West stock is also a strong choice, as it continues to expand both through acquisitions as well as through organic means. The company has a number of insurance and investment companies under its umbrella. And while shares are up, it still offers a substantial dividend yield at 5.3%.

What’s more, even after all this growth shares still trade at just 14.58 times earnings as of writing. So, it’s definitely a valuable stock to consider on the TSX today.

GFL

Another hidden gem for value that you might not have heard of is GFL Environmental (TSX:GFL). This company provides environmental services, including waste management, infrastructure, soil remediation, and more. Not only then do you get exposure to a clean-energy infrastructure company but waste management as well.

The company has locations across North America, with shares up 26% in the last year and up 25% year to date alone. Yet it remains reasonably priced, with shares trading at 2.92 times book value as of writing. It also has a small if still existent dividend yield at 0.14%.

So, again, this is a great choice if you want more growth — especially if you want growth that’s likely to surge in the next several years.

Lundin

Mining stocks in general have been up and down lately. This comes with rising interest rates, inflation, and a potential recession putting pressure on the economy. So, where do investors run? They run to gold stocks.

But there’s something different about Lundin Mining (TSX:LUN). Sure, it invests in gold. It’s a diversified company after all. But it also produce zinc, nickel, and copper. These are all to be used in products that the world uses on a daily basis.

Lundin stock also surged, as it announced the acquisition of a copper producer, along with earnings that beat out estimates. Shares are actually down 10% in the last year but up 19% year to date as of writing. And if offers a 3.54% dividend yield as well as trades at 1.55 times book value.

Cameco

Similar to Great-West Lifeco on the TSX today, I wouldn’t necessarily call this a hidden gem. It’s more of a forgotten one. Cameco (TSX:CCO) stock surged when there was moves on renewable energy. Uranium stocks in general climbed higher, and Cameco stock was at the lead.

However, reality and the economy put a damper on things. Now, Cameco stock is down from all-time highs but still climbing after the drop with renewed investor interest. Earnings continue to beat out estimates, with shares up 13% in the last year and up 16% year to date as of writing.

Now, in terms of earnings, Cameco stock still looks expensive. But, on the books, it remains at a valuable 2.63 times book value. So, if you’re looking for growth, especially in the expanding nuclear space, then I would certainly consider Cameco stock on the TSX today.

The post Canadian Value Investors: Don’t Overlook These 4 TSX Hidden Gems appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2023