Value Investors: 3 Stocks to Buy Today

Looking for a value play? If so, Macdonald Dettwiler & Associates Ltd. (TSX:MDA), Cogeco Cable Inc. (TSX:CCA), and Russel Metals Inc. (TSX:RUS) are great options.

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As many investors have come to know, finding the right stock at the right is not an easy task, but the recent downturn in the market has created numerous buying opportunities. I have scoured the market and compiled a list of three stocks that are now trading at inexpensive forward valuations compared with their five-year averages, so let’s take a closer look at each to determine which would be the best fit for your portfolio.

1. Macdonald Dettwiler & Associates Ltd.

Macdonald Dettwiler & Associates Ltd. (TSX:MDA) is a global communications and information company, providing operational solutions to commercial and government organizations worldwide. At today’s levels, its stock trades at 12.3 times fiscal 2015’s estimated earnings per share of $6.23 and 11.3 times fiscal 2016’s estimated earnings per share of $6.82, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 22.8. In addition, the company pays a quarterly dividend of $0.37 per share, or $1.48 per share annually, giving its stock a 1.9% yield.

2. Cogeco Cable Inc.

Cogeco Cable Inc. (TSX:CCA) is the 11th-largest cable operator in North America and the second largest in Ontario and Quebec. At current levels, its stock trades at 12.8 times fiscal 2015’s estimated earnings per share of $5.12 and 11.4 times fiscal 2016’s estimated earnings per share of $5.76, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 13. Also, the company pays a quarterly dividend of $0.35 per share, or $1.40 per share annually, which gives its stock a 2.1% yield.

3. Russel Metals Inc.

Russel Metals Inc. (TSX:RUS) is one of the largest metals distribution companies in North America. At today’s levels, its stock trades at 18 times fiscal 2015’s estimated earnings per share of $1.17 and 13.4 times fiscal 2016’s estimated earnings per share of $1.57, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 22. Additionally, the company pays a quarterly dividend of $0.38 per share, or $1.52 per share annually, giving its stock a 7.2% yield.

Could your portfolio use a value stock?

Macdonald Dettwiler & Associates, Cogeco Cable, and Russel Metals are three of the top value plays in their respective industries, and all have the added benefit of dividends. All Foolish investors should take a closer look and consider buying one or more of them today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

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