Finding the right stock at the right price is one of the most difficult tasks we face as investors. In order to make things easier for you, I have compiled a list of three stocks that are trading at inexpensive forward valuations compared with their industry averages, so let’s take a look at each to determine which one would be the best fit for your portfolio.
1. Metro Inc.
Metro Inc. (TSX:MRU) is one of the largest owners and operators of grocery stores, convenience stores, and pharmacies in Canada. At today’s levels, its stock trades at 17 times fiscal 2015’s estimated earnings per share of $1.98 and 15.3 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 24.6. In addition, the company pays a quarterly dividend of $0.117 per share, or $0.468 per share annually, giving its stock a 1.4% yield.
2. Cargojet Inc.
Cargojet Inc. (TSX:CJT) is Canada’s leading provider of time-sensitive overnight air cargo services. At current levels, its stock trades at 96.8 times fiscal 2015’s estimated earnings per share of $0.28 and 17.9 times fiscal 2016’s estimated earnings per share of $1.51, the latter of which is inexpensive compared with the industry average price-to-earnings multiple of 25.4. Additionally, the company pays a quarterly dividend of $0.1491 per share, or $0.5964 per share annually, which gives its stock a 2.2% yield.
3. Hardwoods Distribution Inc.
Hardwoods Distribution Inc. (TSX:HWD) is one of North America’s leading distributors of hardwood lumber and related specialty products. At today’s levels, its stock trades at 15.8 times fiscal 2015’s estimated earnings per share of $1.12 and 14.2 times fiscal 2016’s estimated earnings per share of $1.25, both of which are inexpensive compared with the industry average price-to-earnings multiple of 20. In addition, the company pays a quarterly dividend of $0.055 per share, or $0.22 per share annually, giving its stock a 1.2% yield.
Should you buy one of these stocks today?
Metro, Cargojet, and Hardwoods Distribution represent three of the best long-term investment opportunities in the market today. Foolish investors should take a closer look and consider buying one or more of them.
