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