The S&P/TSX Composite Index was down 45 points in early-morning trading on March 24. North American markets have bounced back nicely in the second half of March, but there is still a sense of anxiety, as the Russia-Ukraine conflict rages on. Indeed, world leaders have warned of potential food shortages in Europe and North America due to the pressures generated by inflation and the ongoing war. Investors should prepare for continued volatility. Today, I want to look at two TSX stocks that are discounted in this environment. Let’s jump in.
I’m bullish on this healthcare-focused equity in late March
Earlier this week, I’d suggested that investors get in on the healthcare sector. Greenbrook TMS (TSX:GTMS) is a Toronto-based company that controls and operates a network of outpatient mental health services centres in the United States. Shares of this TSX stock have plunged 24% in 2022 at the time of this writing. The stock is down 77% from the previous year, sinking to a 52-week low this week.
Investors can expect to see the company’s fourth-quarter and full-year 2021 earnings on March 31, 2022. In Q3 2021, Greenbrook delivered revenue growth of 9% to $13.1 million. Meanwhile, quarterly treatment volumes increased 7% to 54,525. Moreover, new patient starts rose 19% in the year-to-date period to 4,762.
Shares of this TSX stock currently possess an RSI of 34. That puts Greenbrook just outside technically oversold territory. Moreover, it is trading in very favourable levels compared to its industry peers. I’m looking to snatch up this healthcare stock after it hit a 52-week low.
Here’s the second TSX stock I’d look to snag right now
This time last year, I’d discussed why the alcohol space was a reliable pick in the face of economic turbulence. Moreover, alcohol consumption experienced an increase during the COVID-19 pandemic. I’m still looking to target TSX stocks in this sector right now.
Waterloo Brewing (TSX:WBR) is a Kitchener-based company that is engaged in the production, distribution, and sale of alcohol-based products. Shares of this TSX stock have dropped 13% in the year-to-date period. The stock is down 21% from the same time in 2021.
Investors can expect to see the company’s final batch of 2021 results in early April. In the third quarter of 2021, Waterloo Brewing delivered net revenue growth of 17% to $26.9 million. Moreover, EBITDA rose 7.4% to $4.3 million. Net revenue climbed 34% in the year-to-date period to $83.6 million, while EBITDA jumped 30% to $15.6 million.
Management has been focused on minimizing supply chain risk in recent quarters. Moreover, the company last declared a quarterly dividend of $0.0304 per share. That represents a 2.4% yield. This company is geared up for strong revenue and earnings growth going forward. It last had an RSI of 27. That puts Waterloo Brewing in technically oversold territory at the time of this writing.
