While it might be tempting to load up on Bitcoin or cannabis stocks, the safer and more reliable investment is often the one that is based on strong fundamentals and good value. The stocks below all trade at less than 10 times earnings and are no more than 2.2 times their book value, providing investors with a lot of value at great prices.
Air Canada (TSX: AC)(TSX:AC.B) had a tremendous year in 2017, and if the economy keeps on its trajectory, then it’s likely the airline will continue to have a strong performance in 2018 as well. A strong economy brings more business and vacation-related travel, which should only further boost the record numbers that Air Canada saw in 2017.
Despite the share price being up more than 60% in the past year, Air Canada’s stock still trades at only two times its book value and less than four times its earnings per share (EPS). Investors may have been scared off with the stock recently trading at all-time highs, but there’s good reason to believe the share price could still climb.
Cenovus Energy Inc. (TSX: CVE)(NYSE: CVE) still remains below book value, trading at a multiple just higher than 0.80. In terms of EPS, the stock trades at a multiple of less than five. The company had a horrible year in 2017 that saw it reach all-time lows, but a rising price of oil and stronger financials give Cenovus a lot of upside.
In the past six months, the share price has risen by more than 30%, and with the stock still trading at a big discount, it’s hard to not like it as a value buy. Cenovus has also announced it will be even more aggressive in its cost-cutting efforts, as it hopes to try and win back investors.
Teck Resources Ltd. (TSX: TECK.B)(NYSE: TECK) has seen its share price rise ~50% in the past six months, as the company has had a great year as steel-making coal prices remain strong. In its most recent quarter, the company saw a 36% year-over-year increase in sales, while profits of $600 million more than doubled the $234 million that Teck Resources reported a year ago.
The danger for investors is that the share price and overall performance could be adversely impacted if commodity prices go south. However, the stock trades at low multiples, and that helps to minimize some of that downside risk.
The share price currently trades at just 1.1 times book value and less than nine times its earnings.
Barrick Gold Corp. (TSX: ABX)(NYSE: ABX) is another commodity-driven stock to make this list. The stock is down 12% in the past six months, and as it approaches its 52-week low, it could be a great value buy. The stock has seen strong support at ~$17.50, so the risk of dropping beneath that for a long period of time appears to be low. Investors that buy at the current price might get a great bargain.
Barrick trades at under 2.2 times its book value and less than 10 times its EPS. As gold prices rise, especially as we see rising tensions and growing uncertainty around the world, Barrick could see a lot of upside.
