Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

5 Cheap Canadian Stocks to Buy Now!

Stock MarketsAug 27, 2021 17:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
5 Cheap Canadian Stocks to Buy Now!

Motley Fool investors are on the hunt these days for cheap Canadian stocks to buy. But what makes a stock cheap? For me, it means a company’s fundamentals are strong, but the share price doesn’t reflect the past or future performance of the stock. On the TSX today, there are plenty of companies for investors to consider. But these five are my favourites.

Royal Bank Royal Bank of Canada (TSX:RY)(NYSE:RY) recently smashed analyst estimates. The Big Six banks reported 34% growth in net income to $4.3 billion, with profit at $3 per share, far above $2.72 estimates. This quarter also saw a “surge” in deal-making for the bank, as well as mortgages as Canada’s largest mortgage lender.

It’s clear why Royal Bank remains the largest of the Big Six banks — and why it’s one of the Canadian stocks to buy today. Motley Fool investors can still get a deal, even at all-time highs! Shares currently trade at a P/E ratio of 13.6, well within value territory, and a 3.27% dividend yield as of writing.

BMO While it may not be the largest of the Big Six Banks, the Bank of Montreal (TSX:BMO)(NYSE:BMO) still garnered plenty of attention off strong earnings. It was in line with a bank that has been consistently ahead of its peers, with all operating segments beat estimates. With adjusted EPS at $3.44, it was well above the consensus of $2.93.

The recovering economy will only continue to do well for BMO and the other Big Six Banks. Yet again, it remains a steal on the TSX today. And that’s what makes it one of the Canadian stocks to buy, with a P/E ratio of 14.52, and a dividend yield of 3.29% as of writing. Both of these banks would be perfect for the long-term investor.

Imperial Oil Commodity companies are coming up with new and often strange ways of getting clean. That now includes Imperial Oil (TSX:IMO)(NYSE:IMO), one of Canada’s largest oil producers. The energy company announced it would begin processing vegetable oil into renewable diesel. While the project still needs approval, it certainly helps achieve the aim of low-emissions fuels for 2025.

Yet it’s one of the Canadian stocks to buy for how cheap its price to book (P/B) ratio is, at just 1.12 as of writing. Meanwhile, you can pick up a 2.98% dividend yield! And what’s more, this stock isn’t trading at all-time highs. So you may indeed get a boost of 30% to reach 52-week highs.

Dream REIT Dream Office REIT (TSX:D.UN) is a strong post-pandemic purchase these days. The company has seen revenue start to rise as companies begin going back into the office. Given that its focus is on downtown Toronto, this could be massive news for investors looking for at least a short-term boost.

Yet again, this is one of the Canadian stocks on the TSX today that Motley Fool investors can buy on the cheap. It remains at a share price trading at a P/E ratio of 12.84. And you can take on a 4.44% dividend yield! What’s more, there is another potential upside of 43% to reach pre-pandemic levels.

Aurinia A vaccine has been created and even has FDA approval, so it’s time to start looking at what’s the next big therapy. That’s exactly what Big Pharma has been doing while looking at Aurinia Pharmaceuticals (TSX:AUP)(NASDAQ:AUPH). The pharmaceutical company has upped the production of its lupus nephritis oral therapy drug. Revenue is already increasing, leading analysts to believe that a major share boost is on the way.

Analysts currently believe the stock has an average potential upside of 120%, as of writing. Meanwhile, shares are still down year to date by 5%, but up 17% in the last month. So now might be a great time for Motley Fool investors to jump on one of these Canadian stocks to buy before a boost!

The post 5 Cheap Canadian Stocks to Buy Now! appeared first on The Motley Fool Canada.

Fool contributor Amy Legate-Wolfe owns shares of Aurinia Pharmaceuticals Inc and ROYAL BANK OF CANADA. The Motley Fool has no position in any of the stocks mentioned.

This Article Was First Published on The Motley Fool

5 Cheap Canadian Stocks to Buy Now!
 

Related Articles

Is Lightspeed (TSX:LSPD) Stock Price Still a Buy?
Is Lightspeed (TSX:LSPD) Stock Price Still a Buy? By The Motley Fool - Dec 05, 2021

Lightspeed Commerce (TSX:TSX:LSPD)(NYSE:LSPD) stock has been in a downward spiral for months. Currently trading for $64, it’s down 59% from its all-time high. The...

Could This Retail Stock Become a Tech Stock?
Could This Retail Stock Become a Tech Stock? By The Motley Fool - Dec 05, 2021

The line between retail and technology has been blurring for years. Nearly everything you can buy in a store is now also available online on the store’s website. This is...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email