MENU

Sierra Wireless, Inc. Is 1 of 3 Stocks to Add on Weakness

These days, more and more stocks are trading at or around 52-week lows, as the market continues to fall from highs that were hit earlier this year. Among these stocks, some stand out as good opportunities, giving investors the chance to buy at attractive levels.

Here are three stocks that investors should buy on weakness:

Altagas Ltd. (TSX:ALA)

Altagas’s stock was already performing poorly over the last year, as the company’s $8.4 billion WGL acquisition brought a lot of uncertainty and perceived risk — in the closing date and the implementation of financing — to the table.

The shares currently present a good opportunity for investors that can see beyond the immediate uncertainty.

The stock yields a hefty 8%, and the acquisition, which will add additional high-quality assets and give the company a significant footprint in the U.S. and Canada, is accretive to earnings and cash flow and brings with it a plethora of growth opportunities.

Sierra Wireless, Inc. (TSX:SW)(NASDAQ:SWIR)

Sierra Wireless is increasingly trading at attractive valuations.

At this point, the stock is trading at over $23, or a P/E multiple of 23 times 2017 consensus EPS estimate and 21 times next year’s consensus expected EPS. This is a far cry from the multiples of over 60 times that the stock was trading at back in 2015 — a big improvement. And the company is reporting better-than-expected results, increasing gross margins, and strong increases in EPS.

Sierra remains well positioned to benefit from the Internet of Things, machine connectivity opportunity.

Peyto Exploration and Development Corp. (TSX:PEY)

Peyto is a tough one. It’s a great company in a lousy industry. But this is what a contrarian’s dreams are made of.

In Peyto, we have a top-tier natural gas producer that is making money even at today’s dismal natural gas prices, and which has an industry-leading cost structure.

Since 2010, Peyto’s production has increased from roughly 20,000 boe per day to almost 100,000 boe per day. The company has achieved its target production rate of 115,000 boe per day in 2017.

Recently, the company has responded to difficult times by reducing its dividend and capital-expenditure program to ensure its long-term success.

The stock is down 67% since January 2017, even though cash flow from operations increased 11% in the first nine months of the year, and the company is actually free cash flow positive.

So, there you have it. There are these and many other stocks that present with good value that investors can buy today for a good return tomorrow.

3,985 stocks listed between the TSX & TSXV, but here are the 5 we'd buy right now!

Overwhelmed by how many public companies there are to choose from in Canada? Motley Fool Canada Director of Research Iain Butler has you covered. Once a month, Iain and the rest of our team at Stock Advisor Canada reveal their five favourite Canadian stocks for new money now.

Considering they've walloped a "stuck in the mud" TSX by 10% over the past 4 years with truly life-changing winners like Shopify (up 236%, more than tripling your money), you'll probably want to have your front-row seat reserved when our next five "Best Buys Now" are released - exclusively on behalf of Stock Advisor Canada members.

To make sure your name is on the list, just click here now... before the curtain is lifted without you.

Fool contributor Karen Thomas has no position in any of the stocks mentioned. David Gardner owns shares of Sierra Wireless. The Motley Fool owns shares of Sierra Wireless. Altagas is a recommendation of Stock Advisor Canada.

Just Released!

Motley Fool CEO Tom Gardner Goes Live and Tells Hong Kong Investors To Buy This Canadian Darling Tech Stock…

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.