Finding the right stock at the right price can be a very difficult task. This we can all agree on. To make things easier for you, I have done the hard part and found three stocks from three different industries that are trading at inexpensive forward valuations compared with their industry averages, so let’s take a closer look at each to see if one of them fits your portfolio’s needs.
1. Teck Resources Ltd.
Teck Resources Ltd. (TSX:TCK.B)(NYSE:TCK) is the largest diversified resource company in Canada and the largest producer of steel-making coal in North America. At today’s levels, its stock trades at 15.5 times fiscal 2015’s estimated earnings per share of $0.78 and 9.6 times fiscal 2016’s estimated earnings per share of $1.26, the latter of which is inexpensive compared with the industry average price-to-earnings multiple of 13.2. Additionally, the company pays a semi-annual dividend of $0.15 per share, or $0.30 per share annually, giving its stock a 2.5% yield.
2. Quebecor, Inc.
Quebecor, Inc. (TSX: QBR.B) is one of the largest integrated communications companies in Canada. At current levels, its stock trades at 15.8 times fiscal 2015’s estimated earnings per share of $1.94 and 14 times fiscal 2016’s estimated earnings per share of $2.20, both of which are inexpensive compared with the industry average price-to-earnings multiple of 21.5. In addition, the company pays a quarterly dividend of $0.035 per share, or $0.14 per share annually, which gives its stock a 0.5% yield.
3. TMX Group Limited
TMX Group Limited (TSX: X) operates cash and derivative markets for multiple asset classes, including equities, fixed income, and energy, while also providing clearing facilities, data products, and related services to the world’s financial institutions. At today’s levels, its stock trades at 13 times fiscal 2015’s estimated earnings per share of $3.90 and 11.6 times fiscal 2016’s estimated earnings per share of $4.35, both of which are inexpensive compared with the industry average price-to-earnings multiple of 33.3. Also, the company pays a quarterly dividend of $0.40 per share, or $1.60 per share annually, giving its stock a 3.2% yield.
Should you buy one of these stocks right now?
Teck Resources, Quebecor, and TMX Group are three very inexpensive investment options in the market today. Foolish investors seeking a value play should take a closer look and consider buying one or all of them.
