In every market, there’s always value to be found. In today’s market, this is becoming increasingly true. I’d like to discuss three top Canadian value stocks that are looking like very attractive buys today.
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Buying when everyone else is selling
If you’re like me, the tumbling markets have unnerved you at least a little bit. I mean, it’s hard to stay completely composed in the face of the uncertainty and volatility that has been the norm these days.
But I’m here to remind you (and myself) that remaining calm is the best way forward. And that there are value stocks out there today that are worth buying for future capital appreciation. As Warren Buffett has famously advised, “Be fearful when others are greedy and greedy when others are fearful.”
Today, investors are fearful. In the short term, this might remain so. But from a long-term perspective, buying value stocks in a fearful environment is a good bet. So, let’s look at three top Canadian value stocks to buy now that have the potential for very solid returns.
Air Canada: A top value stock loaded with tons of fear
Canada’s leading airliner, Air Canada (TSX:AC), has certainly faced many difficulties over the last few years. But these difficulties came after a period of impressive gains, both in the company stock price and in the company’s operational and financial performance.
Today, Air Canada stock is feeling the effects of economic chaos as well as a world that’s increasingly separate. These struggles will almost certainly be felt by Air Canada in the form of lower travel demand and higher costs. And investors are pricing this into Air Canada’s stock, which has fallen 38% since the beginning of this year.
Yet, the airliner is dirt-cheap today and adjusting to this new world by adding and altering routes to maintain its profitability. From a long-run perspective, I think that this is a good time to buy Air Canada stock.
Cineplex: A value stock that’s showing signs of recovery
Cineplex (TSX:CGX) is another top Canadian value stock that I think is due for a rebound. I know that it has been struggling since the pandemic, but I also know that it’s more sheltered from possible tariffs than many other stocks.
In fact, Cineplex has actually fared quite well in past recessions. So, if consumers are feeling the hit from tariffs, they are likely to continue to escape through movies and entertainment. Cineplex’s results have been mixed lately, with some strong months and others being weaker. This is not ideal, but if there were to be a recession, Cineplex is a stock that would do relatively well, in my view.
This is because Cineplex offers a relatively inexpensive form of entertainment that can withstand consumer weakness. Also, Cineplex stock is cheap.
Suncor Energy
Suncor Energy (TSX:SU) stock has fallen dramatically since early April. In fact, it’s fallen 14% in three short weeks. Given the tariff talks and threats, it really is no surprise. However, Suncor stock is pretty well-positioned even in the face of tariffs.
For example, the company is vertically integrated, which means that it sends its crude oil to its own refineries in Canada. What this means is that between 60% to 65% of Suncor’s oil remains in Canada, either to be refined or shipped to British Columbia. In fact, Canadian oil and gas, in general, is increasingly heading to Asia, reducing companies like Suncor’s reliance on the U.S.
Today, Suncor stock is trading at a mere 10 times earnings, and this makes it a top Canadian value stock.
