Yahoo Finance Got $1,000? 3 Stocks That Are Excellent Value
Written by Christopher Liew, CFA at The Motley Fool Canada
The TSX ended lower week on week (0.4%) on April 8, 2022, although it wasn’t a cause for alarm. Canada’s primary equities benchmark remains in record territory with lots of buying opportunities. A $1,000 seed capital should be enough to scoop up stocks at excellent values.
Wesdome Gold Mines (TSX:WDO) and Ero Copper (TSX:ERO) in the mining sector are awesome picks today. Rogers Sugar (TSX:RSI), a consumer staple stock, is not only budget-friendly, but also an extra generous dividend payer. Their share prices are good entry points today, so you’ll definitely get your money’s worth and more.
TSX30 winner
Wesdome Gold is a perennial TSX30 winner, and one of only four stocks that made the list every year since the launching of the flagship program for growth stocks three years ago. In 2021, this gold stock ranked tenth overall. The total return in the last 5.01 years is 316.76% (33% CAGR).
The $2.08 company that produces doré bars and silver as by-product aims to become Canada’s next intermediate gold producer. Wesdome’s two operating mines, The Eagle River Underground Mine (Ontario) and Kiena Complex (Quebec) combine to produce significant ounces of gold annually.
In 2021, Wesdome reported strong operational and financial performance. About 90.34% of the 41,559 ounces total gold production were sold resulting in a 274% increase in operating cash flows versus 2020. Revenue grew 22% year over year to $262 million, while net income climbed 159% to $131.3 million.
Wesdome trades at $14.67 per share and is up 27.45% year to date. Besides the market analysts’ forecast of a 36.3% gain in 12 months, you have an excellent safety net during this period of uncertainty.
Organic growth plans
Ero Copper (rank 29) is a co-winner of Wesdome in the 2021 version of the TSX30. Performance-wise, the total return of this copper stock in 4.47 years is 325.89% (38.28% CAGR). At $20.23 per share, current investors are ahead by only 4.82%. However, market analysts see a return potential between 24.9% and 73.4% in 12 months.
The $1.82 billion high-growth, clean copper producer from Vancouver operates in Brazil. Besides underground mines and open pit mines, Ero has a development project in the country. Its CEO, David Strang, described 2021 as another exceptional year due to the record copper production and strong financial results.
Last year, Ero’s top and bottom-lines grew 52.1% and 285.9% versus 2020. Notably, cash from operations jumped 124% year over year to $364.6 million. According to Strang, the company made significant progress in solidifying its transformational organic growth plans. Management aims to produce 100,000 and 60,000 ounces of copper and gold, respectively, by 2025.
Pure dividend play
Rogers Sugar is a pure dividend play. At only $6.30 per share (+7.41% year to date), the dividend offer is a juicy 5.71% dividend. While sugar is a low-growth business, would-be investors need not worry about a slowdown because sugar is a consumer staple.
After Q1 2022, Rogers Sugar President and CEO Mike Walton expressed confidence about the financial outlook this year. Management will continue to build on improved gross margin in the sugar segment and expect stable volume, including maple, for the remainder of 2022.
Top picks
Canadians with investment appetites but limited budgets aren’t without profitable prospects on the TSX. Wesdome, Ero Copper, and Rogers Sugar are top picks today for their excellent values.
The post Got $1,000? 3 Stocks That Are Excellent Value appeared first on The Motley Fool Canada.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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