While 2020 was the year of growth stocks, 2021 seems to be the year of value stocks. These stocks are companies that remain undervalued despite a strong past, present, and future, with a share price that simply doesn’t match up to its potential. So, today, I’m going to look at four value stocks to beef up your portfolio.
Algonquin Power
Renewable energy is the future, but Algonquin Power & Utilities (TSX: AQN)(NYSE: AQN) also delivers on the present. The $12 billion utility company has been growing through acquisitions for years and doesn’t have any reason to slow down. As more investment goes into renewable energy, the company should see revenue practically explode.
Yet the company is absolutely a value stock, with its valuations at 5.7 times sales and two times book value. The company also offers a strong dividend yield of 3.8% as of writing. Shares are up 14.65% in the last year and 513% in the last decade for a compound annual growth rate (CAGR) of 20%. If you had invested $5,000 a decade ago, your shares would be worth $19,246 today.
Northland Power
Northland Power (TSX: NPI) benefits from much of the same growth that Algonquin stock has. The renewable energy company will also see a lot of investment in the next decade and beyond. Yet there is the perfect opportunity for investors to jump on the $10 billion stock as shares are going through a pullback.
That being said, the company is still on the verge of being a value stock with multiples of 4.6 times sales and 7.3 times book value. Shares are skyrocketing upwards, up 69% in the last year as of writing but down from 83% growth. Meanwhile during the last decade, shares have grown 511% for a CAGR of 18%. If you had invested $5,000 in NPI a decade ago, today your shares would be worth $14,688.
TFI International
Boring is good, and that’s what investors should really like about value stock TFI International (TSX: TFII)(NYSE: TFII). The $9 billion package and courier company saw a huge boost from the growth in e-commerce, and that isn’t about to slow down. But like Northland Power, it’s going through a pullback with the rest of the e-commerce-related businesses.
The company is an amazing value stock at 1.3 times sales and 2.7 times book value. But shares have seen incredible performance, up a whopping 209% in the last year. That’s on top of 850% in the last decade for a CAGR of 25%! If you had invested $5,000 a decade ago, today you would have $34,286 in your portfolio!
Storage Vault
Finally, if you want a safe and stable value stock, then StorageVault Canada (TSXV:SVI) is the answer. People will always need storage solutions, and this company has a multitude across the country, growing by acquisition on a regular basis. Yet this company is still incredibly cheap at $4.25 as of writing, making it the perfect stock to stock up on.
The growth for this company is never ending, which is what makes it the great value stock, despite multiples a touch high at 9.5 times sales and 6.9 times book value. Shares have grown by 53% during the last year and are experiencing a pullback. As shares have grown 3,500% in the last decade for a CAGR of 43%, if you had bought $5,000 worth a decade ago, today you would have $100,476!
