TFSA Investors: 5 Ultra-Cheap Stocks to Buy Right Now

5 dirt cheap stocks that TFSA investors need to be considering for their accounts including Maxar Technologies (TSX:MAXR)(NYSE:MAXR) up more than 92% since April 1st.

It certainly seems like there’s been a lot of stocks on sale as of late, following last week’s announcement by the U.S. Federal Reserve to cut its policy interest rate for the first time since 2008, a move that’s so far resulted in a brief, but outsized, spell of volatility to upend markets.

But while some stocks may be cheap, these five stocks could only be considered as being ultra-cheap, or the very cheapest of those which have presently found themselves in the market’s bargain bin…

Shares in space and satellite communications technology company Maxar Technologies (TSX:MAXR)(NYSE:MAXR) lost more than 93% of their value between the start of 2018 and the end of the first quarter.

Yet in a development that can only be viewed with a great deal of optimism for those investors interested in purchasing these types of deeply oversold conditions, MAXR stock has gone on to nearly double in value since then, gaining more than 92% since April 1.

There are rumours swirling that perhaps the company may be looking to sell its legacy Canadian business in order to pay down debt and focus more efforts on its higher margin imagery business.

If something like that were to happen, it could prove to be a major catalyst for the MAXR shares, which presently are carrying a high interest among short sellers.

Eldorado Gold Corp (TSX:ELD)(NYSE:EGO) is another company whose shares have performed magnificently well so far in 2019, gaining more than 174% in value year-to-date.

Yet shares in this gold mining stock are still inexplicably cheap on paper, trading at just 0.38x their reported book value.

If gold prices continue to gain momentum among contrarian investors this is a stock that could continue to show impressive gains for its shareholders.

Methanex Corporation (TSX:MX)(NASDAQ:MEOH) wouldn’t be seen as being quite as “deep value” as the aforementioned two companies, but we are dealing with a TSX dividend aristocrat that raised its dividend by 9.1% to shareholders of record in June and which is trading at not only its 52-week lows, but a trailing 7.44 times price-to-earnings ratio to boot.

MX would be a suitable candidate for those investors who would perhaps not be quite so comfortable with the wild swings in volatility (either good or bad) exhibited by the aforementioned two companies.

Because of Canada’s deep exposure to oil and gas prices, it seems like there is almost always an energy company or two trading on the TSX Index at unbelievably cheap prices.

Right now, Crescent Point Energy Corp (TSX:CPG)(NYSE:CPG) and Cenovus Energy Inc (TSX:CVE)(NYSE:CVE) would be two of those companies.

While neither are paying much in the way of a dividend (CVE yields 1.78% while CPG is yielding 0.99%) both trade well below their reported book values thus suggesting that if management is able to get things turned around, there could be significant potential for investors to realize big-time capital gains on their investments.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jason Phillips has no position in any of the stocks mentioned. Maxar Technologies is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

calculate and analyze stock
Dividend Stocks

This 5.5% Dividend Stock Pays Cash Every Single Month!

This REIT may offer monthly dividends, but don't forget about the potential returns in the growth industry its involved with.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Use Your TFSA to Earn up to $6,000 Per Year in Tax-Free Passive Income

A high return doesn't mean you have to make a high investment -- or a risky one -- especially with…

Read more »

path road success business
Dividend Stocks

2 High-Yield Dividend Stocks to Buy Hand Over Fist and 1 to Avoid

High yields are great and all, but only if returns come with them. And while two of these might, another…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 7% Dividend Stock Pays Cash Every Month

A high dividend yield isn't everything. But when it pays out each month and offers this stability, it's worth considering!

Read more »