Thanks to the strong bulls over the past few months, Canadian stocks look expensive in terms of valuations. Valuations aren’t attractive, so I think you’ll need to allocate part of your portfolio to stocks that are trading at a 10-30% discount compared to your peers.
A resurgence of demand amid the expected economic expansion in 2021 could make these stocks even higher. So if you have an investment of $ 1,000, consider buying these undervalued stocks and surpassing the broader index.These companies too Dividend payment Consistently, it has the potential to boost your overall return.
Canada’s largest food retailer stock is traded at significantly discounted prices compared to its peers. Rob Lowe (TSX: L) Is traded on futures P / E (Price Earnings Ratio), which is a multiple of 13.4. This is about 28% lower than the average of 18.7 for other companies in the same industry.
Loblaw continues to be impressed with its strong performance, in addition to trading at discounted prices. In addition, retailers continue to add convenient shopping options and expand their digital network and product offerings. This is a precursor to future growth and suggests a further increase in inventories.
Retailers run under multiple banners that appeal to the masses. In addition, its value proposition continues to drive basket size. Loblaw’s defense business is likely to protect the downside risk of its portfolio and is unlikely to be affected by major market fluctuations.
Stocks of electricity producers, Capital power (TSX: CPX)Looks attractive with valuations. Moreover, the expected recovery in demand after the economic resumption has strengthened my bullish view of equities.
Capital Power is traded in Forward EV / EBITDA (Corporate Value vs. EBITDA), which is a multiple of 9, reflecting a 26% discount compared to the peer group average of 12.2. Although the stock is traded at a discounted price, Capital Power offers an excellent dividend yield of 5.4%.
The company’s high-quality assets and long-term electricity purchase contracts are well suited to provide strong cash flow that could support the company’s growth. Meanwhile, the company forecasts an annual dividend increase of 7% in 2021, making it the top stock for income investors.
Bank of Montreal
Share Bank of Montreal (TSX: BMO)(NYSE: BMO) It is traded at a multiple of the price-to-book value ratio (price-to-book value ratio) of 1.2. This is about 20% lower than the average for other companies in the same industry. Bank of Montreal not only offers excellent value, but is also impressed with its solid financial and operating results. It has also paid dividends consistently for a very long time, increasing at a CAGR of 6% over the last 15 years.
The economic recovery is expected to drive credit growth and support the profits and profits of the Bank of Montreal. In addition, reduced credit grants and improved efficiency will drive revenue in 2021. Stock price uptrend..
Penbina pipeline (TSX: PPL)(NYSE: PBA) It is expected to benefit from the recovery in energy demand. On the other hand, it is trading at a discounted price to other companies in the same industry and offers a high yield of 7.2%, which makes it an attractive investment opportunity at the current price level.
Pembina Pipeline shares are traded in forward EV / EBITDA multiples of 10.3. This is about 12% lower than the peer group average of 11.7. In addition, the company operates a highly contracted business that generates strong fee-based cash flow and promotes higher dividend payments. The company’s earnings and earnings will improve in 2021, and I think it is likely that inventories will increase against the backdrop of a recovery in energy demand.
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Stupid contributor Snehanahata There are no positions in any of the listed stocks. Motley Fool recommends PEMBINA PIPELINE CORPORATION.
10-30% Discount Stocks: Where to Invest $ 1,000 Now
https://www.fool.ca/2021/01/26/stocks-at-a-10-30-discount-where-to-invest-1000-right-now/ 10-30% Discount Stocks: Where to Invest $ 1,000 Now