3 Value Stocks to Buy to Get Rich Slowly

Investors have three exciting value stocks to buy in Q2 2021. The North West Company stock, Tecsys stock, and Hardwoods Distribution are dividend payers with tremendous growth potentials.

| More on:
Value for money

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The stock market grows over time — but not without its value changing due to daily or monthly fluctuations. However, despite the market’s unpredictable behaviour, buying opportunities abound. Canadians can scoop three great value stocks on the TSX that could make them richer, slowly but surely.

Impressive financial performance

One of the best choices today is a $1.72 billion multinational grocery and retail company. The North West Company (TSX:NWC) is the dominant provider of everyday products in Canada’s western provinces and northern territories. Likewise, this former fur trading company has a captured market in Alaska, Hawaii, and U.S. territories in Oceania as well as the Caribbean.

Believe it or not, this consumer-defensive stock’s total return in the last 20 years is 6,170.38% (22.96% CAGR). The current share price is $35.40 (+10.23% year-to-date), while the dividend yield is 4.04%. Market analysts recommend a buy rating and forecast the price to climb 18.33% to $41.89 in the next 12 months.

NWC President and CEO Edward Kennedy describes 2020 as the most intensely active and reactive year in the company’s history. In the full year 2020 (year ended January 31, 2021), earnings results were stellar. Total sales and net earnings grew by 12.65% and 66.40% versus 2019. Management expects 2021 earnings to be meaningfully above the pre-pandemic (2019) levels.

Business greatness

Tecsys Inc. (TSX:TCS) could be the next tech superstar on the TSX. The $652.66 million Montreal, Canada-based company develops, markets, and sells supply chain management software. It serves more than 1,000 customers in Canada and 14 other countries. The goal is to help good and industry-leading organizations achieve supply chain greatness.

This $652.66 million tech firm primarily serves third-party logistics, healthcare systems, retail, services parts, and general wholesale distribution industries. The Tecsys Itopia solution is perhaps the industry’s most dynamic and powerful engine for supply chain business. It connects customers and suppliers as one borderless enterprise.

In Q3 fiscal 2021 (quarter ended January 31, 2021), total revenue grew 19% versus the same period in fiscal 2020. Meanwhile, the reported comprehensive income for the quarter was 86.67% better year-over-year. While the stock is underperforming in 2021 (-9.31%), market analysts forecast the price to soar 55.14%, from $45.12 to $70, in the next 12 months. Tecsys pays also pays a modest 0.58% dividend.

Record-setting year

Hardwoods Distribution Inc. (TSX:HDI) flies under the radar, although it’s one of the better performers thus far in 2021. The industrial stock outperforms the TSX, +41.35% versus +9.61%. Also, at $35.54 per share, would-be investors can partake of the 1.13% dividend. Analysts covering Hardwood Distribution see a potential 18.18% upside to $42 in the next 12 months.

The $754.92 million company from Langley, Canada, is a world-class distributor of architectural building products. In North America, it operates under multiple brands (three industry-leading distribution brands). However, 90% of the business is in the United States. Hardwoods generate more than $1.2 billion in annual revenues.

Management is proud to report record-setting results in 2020 despite the global pandemic. First up was the 6.26% sales growth that resulted in an all-time high of $1,245.3 million. The gross profit margin percentage of 19.2% was also a record (18.1% in 2019). Harwood’s profit in 2020 was 27.12% higher than in 2019.

Value investors shouldn’t miss including Hardwoods Distribution or the North West Company and Tecsys in their shopping lists for Q2 2021.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tecsys Inc. The Motley Fool recommends HARDWOODS DISTRIBUTION INC.

More on Dividend Stocks

funds, money, nest egg
Dividend Stocks

TFSA Passive Income: 2 Great Canadian Dividend Stocks for Retirees to Buy Now

Retirees seeking reliable passive income can now buy top TSX dividend stocks at cheap prices.

Read more »

data analyze research
Dividend Stocks

Earn Monthly Passive Income: 2 Hot Dividend Stocks in Canada to Buy Now and Hold Forever

These two hot dividend stocks could help you to earn stable monthly passive income in Canada.

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Be a Landlord: Top 2 REITs (With Monthly Dividends) I’d Buy and Forget

You can be a landlord and earn monthly dividends for the rest of your life. All you need is the…

Read more »

A worker gives a business presentation.
Dividend Stocks

Got $5,000? 3 Stocks to Hold for the Next 20 Years

New investors don’t need tens of thousands to start a portfolio. Here are three stocks to hold for the next…

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

Earn $370 Every Month with These 3 Dividend Stocks

These three Canadian dividend stocks could boost your passive income.

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

3 Dividend Stocks to Buy Hand Over Fist

Investing in dividend stocks could help you reach a comfortable retirement. Here are three stocks to start buying hand over…

Read more »

Retirement plan
Dividend Stocks

4 Stocks That Could Turn $100,000 Into $500,000 by the Time You Retire

Companies such as Brookfield Asset Management have the potential to consistently beat the broader markets and deliver stellar returns to…

Read more »

money while you sleep
Dividend Stocks

Need Passive Income? 2 TSX Stocks to Earn $500/Month Without Losing Sleep

By investing in Enbridge and Keyera stock, investors can make $500/month.

Read more »