Buy Alert: Here Are 3 Stocks That Bay Street Just Upgraded

Need juicy ideas? This trio of recently upgraded stocks, including Teck Resources Ltd (TSX:TECK.B)(NYSE:TECK), might provide the opportunities you’re looking for.

| More on:

Hello again, Fools. I’m back to highlight three stocks that have recently received upgrades from Bay Street. While it’s always best to take Bay Street opinions with a grain of salt, newly upgraded stocks can often be a solid source of investment ideas.

Remember, it’s the investment thesis behind the upgrade — not the rating itself — that is most important.

Without further ado, let’s get to it.

Chorus of applause

First up, we have Corus Entertainment (TSX:CJR.B), which was upgraded by Cormark to buy from market perform early last week. Along with the upgrade, Cormark raised its price target on the stock to $7 (from $5.65), representing about 24% worth of upside from where it sits today.

Triggering the upgrade was upbeat Q1 results. While EPS missed estimates, revenue of $467.5 million blew expectations out of the water, reigniting optimism over a prolonged turnaround.

“We returned to growth in television advertising revenue, driven primarily by a strong fall schedule and a significant improvement in television advertising demand,” said Corus CEO Doug Murphy.

With the stock still down about 32% over the past year — versus a loss of 12% for the S&P/TSX Capped Consumer Discretionary Index — Cormark’s bullishness makes sense.

Touch of gold

Next up is Teck Resources (TSX:TECK.B)(NYSE:TECK), which Goldman Sachs upgraded to buy from neutral early last week. Along with the upgrade, Goldman raised its price target a touch to $39 (from $38), representing roughly 28% worth of upside from where the stock sits today.

Goldman analyst Matthew Korn cited “fresh areas of opportunity” within the North America metals and mining sector for the upgrade. Korn says that the recent downturn has left sentiment bearish and price multiples low, creating plenty of value in the space.

In addition to Teck Resources, Korn upgraded U.S. metal plays Alcoa and Commercial Metals.

Teck Resources remains off 17% over the past year — versus a loss of 14% for the S&P/TSX Capped Materials Index — and sports a paltry forward P/E 7.8.

Savoury selection

Rounding out our list is Savaria (TSX:SIS), which National Bank Financial upgraded to outperform from sector perform last Thursday. Along with the upgrade, National Bank boosted its price target on the stock to $17 (from $14.77), representing about 16% worth of upside from where the stock is now.

In November, Savaria’s Q3 revenue rose 27% to a record $15.1 million, gross margin expanded to 20%, and adjusted EBITDA climbed 29% to $27.7 million. However, the stock has about 10% since then, prompting National Bank to get bullish on Savaria’s now-inexpensive growth prospects.

The stock is now off 22% over the past year — versus a gain of 2% for the S&P/TSX Capped Industrials Index — and offers a decent dividend yield of 2.2%.

The bottom line

There you have it, Fools: three stock upgrades that are worth checking out.

As always, don’t view them as formal recommendations. Instead, look at them as a starting point for further research. The track record of professional analysts is notoriously mixed, so plenty of due diligence is still necessary.

Fool on.

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 Brian Pacampara owns no position in any of the companies mentioned. Savaria is a recommendation of Hidden Gems Canada.

More on Investing

Investing

3 TSX Growth Stocks Worth Buying Today

Many investors have started to give up on growth stocks. Here are three TSX growth stocks that are worth buying…

Read more »

Red siren flashing
Investing

ALERT: 3 Base Metal Stocks to Buy Today

The TSX is in a rut in late September, but base metals stocks like Teck Resources Inc. (TSX:TECK.B)(NYSE:TECK) are still…

Read more »

Golden crown on a red velvet background
Dividend Stocks

A Canadian Dividend Aristocrat That’ll Pay Passive Income Investors Through a 2023 Recession

CIBC (TSX:CM)(NYSE:CM) stock looks like a dividend bargain to pick up right now.

Read more »

Question marks in a pile
Bank Stocks

Is CIBC (TSX:CM) 1 of the Best Bank Stocks to Buy Now?

Although all of the Big Six bank stocks in Canada have fallen in value this year, CIBC looks like it…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Stocks for Beginners

Why Dye & Durham (TSX:DND) Is Rallying Despite its Worse-Than-Expected Q4 Earnings

Here are the main reasons why DND stock has seen a sharp rally in the last few sessions.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Investing

TFSA Investors: 2 U.S. Stocks I’m Never Selling

Do you invest in stocks that trade in the U.S.? They could be excellent additions to your portfolio. Here are…

Read more »

Target. Stand out from the crowd
Investing

3 Stocks I Own and Will Buy More of if They Fall

Growth stocks like Constellation Software (TSX:CSU) are attractive right now.

Read more »

hand using ATM
Dividend Stocks

Should You Buy Royal Bank Stock at Current Levels?

RY stock has dropped 20% since January, underperforming broader markets. Is Canada's biggest bank still a buy?

Read more »