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.
