BUY ALERT! 3 Cheap Stocks to Snag Today

Canadians seeking out discounts in this hot market should look to cheap stocks like Cogeco Communications Inc. (TSX:CCA) in November.

| More on:
value for money

Image source: Getty Images

The S&P/TSX Composite Index has had a very solid start to the week on the heels of the exciting Pfizer report on its vaccine progress. Fortunately, there are still some appealing discounts available on the Canadian market. Today, I want to look at three cheap stocks that are worth scooping up on Remembrance Day. Let’s dive in.

Gibson looks like a cheap stock to snag right now

Gibson Energy (TSX:GEI) is a Calgary-based crude oil infrastructure company that is engaged in the gathering, storage, optimization, processing, and marketing of crude oil and refined products in North America. Its shares have dropped 22% in 2020. The stock is down 11% month over month.

The company released its third-quarter 2020 results on November 2. In the face of challenging conditions, Gibson reported distributable cash flow of $65 million — down 10% from the prior year. Adjusted EBITDA fell 13% to $96 million. However, it maintained a solid balance sheet and looks poised to rebound, as oil and gas demand is poised to return to normal in 2021.

Shares of Gibson Energy fell into technically oversold territory in the first week of November. It has since moved into neutral territory, but value investors should still consider adding it today. This cheap stock also possesses a favourable price-to-earnings (P/E) ratio of 20. It offers a quarterly dividend of $0.34. That represents a tasty 6.9% yield.

This telecom recently sent off an enticing buy alert

Cogeco Communications (TSX:CCA) operates as a top communications company in North America. Its shares have fallen 16% so far this year. The stock has plunged 14% month over month. Cogeco released its fourth-quarter and full-year fiscal 2020 results on October 27. Let’s discuss why Cogeco qualifies as a cheap stock right now.

The company reported revenue growth of 2.2% to $624 million in Q4 2020. Revenue took a hit, as radio advertising plummeted in the face of the COVID-19 pandemic. Meanwhile, adjusted EBITDA increased 6.7% from the prior year to $300 million. Profit rose marginally to $96.7 million, or $1.93 per share, compared to $95.2 million, or $1.91 per share, in Q4 2019.

Better yet, Cogeco announced a quarterly dividend of $0.545 per share. This represents a 2.5% yield. Cogeco Communications last had a Relative Strength Index (RSI) of 27, which puts it in technically oversold territory. Moreover, this cheap stock possesses a favourable P/E ratio of 12.

One more cheap stock to add in the promising grocery space

Loblaw (TSX:L) is the largest grocery retail company in Canada. Last month, I’d discussed why grocery stocks were very solid defensive options for investors in this environment. Shares of Loblaw have been static in 2020. Investors can expect to see its third quarter 2020 results tomorrow.

Shares of Loblaw possess a P/E ratio of 24 and a price-to-book value of 2.1. Its shares also fell into oversold territory in early November. Loblaw has since recovered and has an RSI of 35, but it is still a solid value pick. This cheap stock is worth picking up for those on the hunt for discounts and a defensive stock.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned.

More on Investing

A cannabis plant grows.
Cannabis Stocks

Canopy Growth Stock Is Rising But I’m Worried About This One Thing

Canopy Growth stock is soaring as the legalization effort makes real progress in both Germany and the United States.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing

3 Roaring Stocks to Hold for the Next 20 Years

These top TSX stocks are excellent long-term buys, given their multi-year growth potential and solid underlying businesses.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

grow dividends
Investing

Here’s My Top 3 TSX Stocks to Buy Right Now

Even though the TSX has been rising, there are still some good bargains out there. Here are three top compounding…

Read more »

Target. Stand out from the crowd
Investing

Prediction: This Canadian Growth Stock Could Double by 2030

Alimentation Couche-Tard (TSX:ATD) is a top growth stock that could do well over the next six or so years.

Read more »

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

money cash dividends
Stocks for Beginners

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're looking for cheap stocks, these three have a huge future ahead of them, all while costing far less…

Read more »