As investors know, finding the right stock at the right price can be a very difficult task, but the recent downturn in the market has created a plethora of opportunities. Let’s take a look a three value plays from three different industries to determine which would be the best fit for your portfolio.
1. Progressive Waste Solutions Ltd.
Progressive Waste Solutions Ltd. (TSX:BIN)(NYSE:BIN) is one of the largest providers of waste management solutions in North America. At today’s levels, its stock trades at 27.9 times fiscal 2015’s estimated earnings per share of $1.25 and 24.2 times fiscal 2016’s estimated earnings per share of $1.44, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 29.1. In addition, the company pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, giving its stock a 2% yield.
2. Stantec Inc.
Stantec Inc. (TSX:STN)(NYSE:STN) is one of the world’s leading providers of architectural, engineering, and environmental services. At current levels, its stock trades at 16.2 times fiscal 2015’s estimated earnings per share of $1.88 and 13.9 times fiscal 2016’s estimated earnings per share of $2.20, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 31.9. Also, the company pays a quarterly dividend of $0.105 per share, or $0.42 per share annually, which gives its stock a 1.4% yield.
3. 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 12.6 times fiscal 2015’s estimated earnings per share of $0.61 and 8.3 times fiscal 2016’s estimated earnings per share of $0.92, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 15.8. In addition, the company pays a semi-annual dividend of $0.15 per share, or $0.30 per share annually, giving its stock a 3.9% yield.
Should you buy one of these stocks today?
Progressive Waste Solutions, Stantec, and Teck Resources are three of the top value plays in their respective industries, and all three have the added benefit of dividends. Foolish investors should take a closer look and strongly consider establishing positions in one or more of them today.
