The S&P/TSX Composite Index was down 207 points in early afternoon trading on Friday 26. If this triple-digit loss holds, it would close out a rollercoaster week for the TSX and its peers south of the border. Today, I want to look at three top TSX stocks priced below the $10 mark.
Cheap TSX stock in healthcare
In early June, I explained why investors should continue to target TSX stocks in healthcare. Biotherapeutics has been one of the fastest-growing subsectors in this space. Knight Therapeutics (TSX:GUD) operates as a specialty pharmaceutical company in Canada. Its shares have climbed 28% over the past three months at the time of this writing.
The company released its first-quarter 2020 results on June 26. Key events included the launch of Cresemba, which will be used for the treatment of invasive aspergillosis and invasive mucormycosis in Brazil. It also obtained the exclusive Canadian commercial rights to Trelstar, which has been approved for the treatment of prostate cancer.
Knight has put itself in the position to be a global player in the pharmaceuticals space. The stock was priced at $6.70 in early afternoon trading today. Investors should consider stashing this TSX stock for the long term.
Keep your eyes on energy
Shawcor (TSX:SCL) is a Calgary-based company that provides products and services for the infrastructure, energy, and transportation markets in North America and around the world. Its shares have plunged 76% in 2020 at the time of this writing.
However, Canada’s energy markets have managed to gain some momentum in the second half of spring, which is why this TSX stock priced below the $5 mark is worth watching.
In the first quarter, Shawcor saw revenue drop 9% year over year to $319 million. Meanwhile, adjusted EBITDA dropped 78% to $6 million. On the plus side, Shawcor’s order backlog came in at $575 million as at March 31, 2020 – up from $513 million as at December 31, 2019.
The company is fighting major headwinds in this crisis, but management has taken measures to dramatically reduce costs.
Shares of Shawcor last had a favourable price-to-book value of 0.2. Regardless, this TSX stock in the energy space is an interesting gamble in late June.
Some gold stocks are still undervalued
Energy has been pummeled in this crisis, while other sectors have thrived. Gold miners have enjoyed one of the best stretches in nearly half a decade. I’d suggested that investors should continue to pour into TSX stocks in this space.
Kinross Gold is one of the top gold producers in Canada. Its shares have climbed 78% year over year as of early afternoon trading on June 26. In the first quarter of 2020, Kinross saw adjusted net earnings increase 53% to $127.4 million, or $0.10 per share. Meanwhile, the company boosted its financial position and now boasts total liquidity of $1.9 billion.
Shares of Kinross last possessed a P/E ratio of 11 and a P/B value of 1.5. The spot price of gold was one of the few elements in the green today.
It has now climbed above the $1,780 mark and is threatening the $1,800 threshold. I’m still bullish on gold stocks this summer, and Kinross offers nice value.
