3 Top Canadian Value Stocks for September 2021

Badger Infrastructure Solutions (TSX:BDGI), Cineplex (TSX:CGX), and another stock look like great Canadian stocks heading into a September 2021 that could see more gains.

| More on:

September is closing in, and instead of a much-anticipated correction, we could be in for continued upside, as more investors finally put their money to work in the bargains that remain. In this piece, we’ll have a look at three Canadian stocks that have already suffered nasty declines and are in a spot to make up for lost time going into the autumn season.

Canadian value stocks on sale

Without further ado, consider Badger Infrastructure Solutions (TSX:BDGI), Cineplex (TSX:CGX), and Suncor Energy (TSX:SU)(NYSE:SU): three unloved names that seem too cheap for their own good heading into September of 2021.

Badger Infrastructure Solutions

Badger Infrastructure Solutions, formerly known as Badger Daylighting, has had an underwhelming year, with the stock now fresh off a nearly 30% correction on the back of some less-than-stellar earnings results. Margins haven’t gone in the direction that Badger had hoped. COVID-19 pressures continue to weigh, and the soil excavator can’t seem to catch any breaks.

Today, the Canadian stock is a few percentage points off its 52-week low. It’s one that I think contrarians have to buy, as the company has a lot of room to make up in the second half. The environment looks more favourable, and recent quarterly concerns may prove to be more temporary in nature.

As infrastructure spending increases in the early innings of the economic expansion, I think it’ll be tough to keep Badger down. The business of mobile soil excavation is a dirty business, but somebody has to do it! The stock trades at 2.3 times sales and is one of the best mid-cap bargains on the TSX these days. If you can handle the volatility, I think the risk/reward tradeoff looks absolutely terrific this September 2021.

Cineplex

Cineplex has been under considerable pressure for nearly five years now. It’s been quite the fall from grace, but I think the tides are about to turn for the better. Everything bad that could have happened for the cherished movie theatre and entertainment company has pretty much already happened. A pandemic is pretty much the worst exogenous event that could have happened!

With more vaccines going into arms, I think the COVID-19 pandemic is positioned to go endemic. While the coronavirus won’t be eradicated for years, if not decades, I think that it will be better manageable such that a return to normalcy will not be jeopardized.

What does that mean for Cineplex stock?

I think the bottom is in. With its new CinePass subscription service, which offers an incredible value proposition to movie fans, I think investors are heavily discounting the firm’s long-term recovery prospects.

Suncor Energy

Finally, we have Suncor Energy, a quality integrated energy company that doesn’t get any respect these days.

The longer oil stays elevated, the more room the firm will have to run and the more upside its dividend and share price. With the valuation gap widening between Suncor stock and its peers, I think contrarians with strong stomachs have a lot to gain with Suncor’s risk/reward tradeoff here. The Canadian stock trades at a modest discount to book value and is well equipped to make a run past its 2020 highs again, perhaps within the next 18 months.

Oil can be tough to invest in. But if you want deep value, Suncor is one of the better horses to bet on these days.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends CINEPLEX INC.

More on Stocks for Beginners

Canada national flag waving in wind on clear day
Tech Stocks

Trump Trade: Canadian Stocks to Watch

With Trump returning to the presidency, there are some sectors that could boom in Canada, and others to watch. But…

Read more »

cloud computing
Dividend Stocks

Insurance Showdown: Better Buy, Great-West Life or Manulife Stock?

GWO stock and MFC stock are two of the top names in insurance, but which holds the better outlook?

Read more »

Man looks stunned about something
Dividend Stocks

Better Long-Term Buy: Dollarama Stock or Canadian Tire?

Both of these Canadian stocks have proven to be solid long-term buys, but which is better for the average investor?

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Hourglass and stock price chart
Dividend Stocks

Goeasy Stock: Is It Heading for a 52-Week High?

Goeasy stock has been edging higher, especially after another record-setting earnings report. So are 52-week highs in sight?

Read more »

bulb idea thinking
Stocks for Beginners

2 Stocks That Could Help You Get Richer in 2025

It’s time to prepare for 2025 before you leave for the holidays. Here are two stocks that could make you richer…

Read more »

Middle aged man drinks coffee
Stocks for Beginners

The Best Investment Hack Every Investor Should Know

An investment hack doesn't have to be risky, tricky, or any of those scary ideas. In fact, it can be…

Read more »

Investor reading the newspaper
Stocks for Beginners

A Better Post-Earnings Buy: Restaurant Brands or Lightspeed?

These two retail stocks have come out with earnings, but which is the clear long-term winner for investors?

Read more »