4 Value Stocks I’d Consider Today

Canadians may want to consider adding value stocks like Canadian Western Bank (TSX:CWB) and others after a market pullback.

Target. Stand out from the crowd

Image source: Getty Images

The S&P/TSX Composite Index was up over 200 points in early afternoon trading on May 14. North American stocks have been hit with major turbulence this week. Today, I want to look at four value stocks that are worth snatching up in the middle of May. Let’s jump in.

Here’s a reliable railway equity to buy on the dip

Canadian National Railway (TSX:CNR)(NYSE:CNI) is a Montreal-based company engaged in the rail and related transportation business. Its shares have dropped 7% in 2021 as of early afternoon trading on May 14. This value stock has climbed 18% from the prior year. Earlier this month, I’d discussed why it was worth targeting.

The company released its first-quarter 2021 results on April 26. Operating income rose 9% from the prior year to $1.32 billion. Meanwhile, revenues were in line with the previous year at $3.53 billion.

Shares of CNR last had a price-to-earnings (P/E) ratio of 26. The stock last had an RSI of 31, putting it just outside technically oversold territory. It offers a quarterly dividend of $0.615 per share, representing a modest 1.9% yield.

This value stock offers exposure to the booming green energy space

In March, I’d looked at some of the top green energy stocks to target this year. Brookfield Renewable Energy (TSX:BEP.UN)(NYSE:BEP) owns a portfolio of renewable power-generation facilities around the world. Its shares have dropped 22% in 2021. However, the stock is still up 24% from the prior year.

Brookfield unveiled its first batch of 2021 results on May 4. Funds from operations (FFO) came in at $242 million or $0.38 per share — up from $217 million, or $0.37 per share, in the previous year.

This qualifies as a value stock with an RSI of 32. It fell to oversold levels in the beginning of May and has struggled to regain momentum. Moreover, Brookfield offers a quarterly dividend of $0.304 per share. That represents a 3.4% yield.

A bank stock that still holds nice potential

Canadian Western Bank (TSX:CWB) is an Edmonton-based regional bank. Its shares have climbed 24% in 2021. Canadian Western Bank is up 80% from the prior year. It still qualifies as a value stock at this stage.

In Q1 2021, the bank reported revenue growth of 11% to $245 million. Meanwhile, adjusted earnings per share increased 12% to $0.93. It delivered loan growth of 6% to $30.6 billion and branch-raised deposits increased 20% to $17.6 billion.

Shares of this bank stock last had a favourable P/E ratio of 12. Canadian Western Bank offers a quarterly dividend of $0.29 per share, representing a 3.2% yield.

One more value stock to snatch up today

Eldorado Gold (TSX:ELD)(NYSE:EGO) is the last value stock I want to zero-in on today. Shares of this gold stock have dropped 26% in 2021 at the time of this writing. The stock is still up 7.4% year over year.

The Vancouver-based gold miner released its first-quarter 2021 results on April 29. It Q1 2021 production was in line with its initial guidance. Revenue came in at $224 million — up from $204 million in Q1 2020. Rising inflation in the United States could be bullish for the yellow metal going forward.

This gold stock possesses a favourable P/E ratio of 16. Investors should consider scooping it up as we reach the halfway point in May.

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. The Motley Fool owns shares of and recommends Canadian National Railway. The Motley Fool recommends Canadian National Railway.

More on Investing


Got $5,000? Buy and Hold These 3 Value Stocks for Years

Given their solid underlying businesses, healthy growth prospects, and attractive valuation, I am bullish on these three value stocks.

Read more »

money cash dividends
Stocks for Beginners

Got $1,000 to Invest in Stocks? Put It in This Index Fund

This low-cost beginner-friendly ETF is a great way to invest $1,000.

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

3 Cheap Tech Stocks to Buy Right Now

Given their long-term growth prospects and discounted stock prices, I am bullish on these tech stocks.

Read more »

money cash dividends
Dividend Stocks

Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

Want some absurdly cheap stocks for your portfolio? Here are two options trading at a huge discount right now.

Read more »

Gas pipelines
Dividend Stocks

TFSA Passive Income: Is Enbridge Stock a Buy, Sell, or Hold?

Enbridge now offers a yield near 8%. Is the dividend safe?

Read more »

A worker uses the cloud for paperless work. tech
Tech Stocks

Wanna Beat the Market? Try These 2 Tech Stocks That Look Undervalued Today

Here's why undervalued TSX stocks such as Vitalhub can help you generate outsized gains in the next 12 months.

Read more »

Redwood trees stretch up to the sunlight.
Tech Stocks

These 3 Magnificent Stocks Keep Driving Higher

Constellation Software, Dollarama and another TSX stock have consistently generated positive investment returns. Here’s why they belong in your retirement…

Read more »

sale discount best price
Dividend Stocks

3 Stocks to Buy While They Are on Sale

Top TSX dividend stocks are trading at discounted prices.

Read more »