Got $1,000? Here Are 2 Value Stocks to Buy Now!

If you’ve got cash to invest today, these two massive Canadian stocks offer some of the best value, making them the top stocks to buy now.

| More on:

The stock market has continued to stay hot lately, despite concerns over the Delta variant and a fourth wave of the pandemic. So, there’s no question that finding high-quality value stocks to buy now is no easy task.

At this point, the majority of top companies have recovered long ago, and most of what few stocks that do remain undervalued are still being heavily impacted by the current situation with the pandemic.

So, it’s crucial to be strategic when looking for value, making sure that the risk is worth the reward and that the stock has the ability to recover.

It’s also crucial to find stocks that can recover in the near term. Otherwise, you have the risk of tying up your money in a stock that underperforms while the rest of the market continues to grow. Or worse, if you buy a stock that’s really struggling, it could continue to lose money over the coming months.

With that in mind, here are two of the very best value stocks for investors to buy now.

A great opportunity to buy an incredible long-term investment

If you’re looking for a top value stock today, you might want to check out Manulife Financial (TSX:MFC)(NYSE:MFC).

Manulife is a massive Canadian insurance company with a market cap just shy of $50 billion. The stock has insurance and wealth management operations in several countries, including Canada, the U.S., and China.

One of the main factors that impact a massive insurance company like Manulife’s bottom line is interest rates. And while rates are low, these companies have a harder time earning a profit.

That’s allowed the stock to become considerably cheap lately, offering an excellent opportunity for investors looking for a high-quality value stock to buy now.

Interest rates will have to rise eventually, and with the economy recovering well recently, it looks like that might be sooner rather than later.

And on top of the potential Manulife has to recover in value, it also has years of growth potential, especially in Asia, making it a great investment for long-term investors.

Not only does the stock pay a dividend that currently yields 4.6%, but its average target price from analysts is roughly $32 — a more than 30% premium to today’s market price.

So, if you’re looking for a high-quality value stock to buy now, Manulife is certainly worth consideration.

One of the top value stocks to buy now

In addition to Manulife, another industry where you can find some of the best value stocks to buy now is gold.

Gold stocks have been cheap for some time now, making stocks like Barrick Gold (TSX:ABX)(NYSE:GOLD) some of the best opportunities for investors today.

Gold is an asset that many investors like to allocate 5-10% of their portfolio to. And there may not be a better time to buy gold than this market environment.

Barrick is one of the best stocks to consider in the industry because of its massive size and the natural diversification it offers. Barrick has operations all over the world, giving it a tonne of strategic advantages.

The main reason to buy Barrick, though, is because it’s easily one of the top value stocks to buy now.

You could argue that Barrick is undervalued at these gold prices. But with plenty of catalysts for gold prices to increase, it has the potential for a significant rally in the short term.

Analysts seem to agree. All five analysts that cover the stock have Barrick rated a buy. Furthermore, the average target price from analysts is roughly $34.50 — a 35% premium to today’s price.

So, if you want to take advantage of this incredible discount and gain some exposure to gold while it’s still relatively cheap, I’d strongly consider Barrick today. It’s easily one of the best value stocks to buy now.

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 Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Stocks for Beginners

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

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 »

Asset Management
Stocks for Beginners

TFSA: 4 Canadian Stocks to Buy and Hold Forever

Thinking about what to buy with the new TFSA contribution space in 2025? These four Canadian stocks are worth holding…

Read more »

concept of real estate evaluation
Stocks for Beginners

2 No-Brainer Real Estate Stocks to Buy Right Now for Less Than $1,000

These two real estate sector-focused stocks have the potential to deliver strong returns on your investments in the coming years.

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »