3 Top Canadian Stocks at an Absurdly Low Price

The TSX’s rally from the COVID year continues in 2021. Investors have great deals in low-priced choices like Enghouse Systems stock, Corus Entertainment stock, and Superior Plus stock.

| 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 loaded question of regular investors today is if it’s a good time to buy stocks amid the uncertainties. If you were to look at the Toronto Stock Exchange’s performance following its worst single-day drop (12.3%) on March 12, 2021, the answer is yes.

Market analysts say it takes two years for the market to recover from a historic decline. However, it took only four months for Canada’s primary stock market index to rebound. The TSX closed at 16,063.40 on July 15, 2020, or 28.4% higher. Fast forward to 2021, and the TSX is up 11.71% as of May 17, 2021. The good news for investors is that there are plenty of buying opportunities, despite the index’s outperformance.

Technology

Enghouse Systems (TSX:ENGH) trades at only $52.61 per share — a 12.2% discount. Besides the modest 1.23% dividend, there’s a potential capital gain. Analysts covering the tech stock forecast the price to climb 52% to $80 in the next 12 months.

The $2.91 billion company from Markham, Ontario, develops and sells enterprise-oriented applications software for the global market. Its two main business segments, Interactive Management Group and Asset Management Group cater to distinct vertical markets.

Enghouse Interactive and Enghouse Vidyo under IMG transform contact centres into growth engines for businesses and enhances visual communications, respectively. For AMG, communications & media, utilities, and defence organizations use Enghouse Networks’s technology solutions. Enghouse’s Transportation & Public Safety provides software solutions for transit, supply chain, and public safety companies.

Communications services

Corus Entertainment (TSX:CJR.B) is among the top-performing TSX stocks thus far in 2021. Despite its 40.7% year-to-date gain, the current share price of $5.96 is still absurdly low. Market analysts see a potential upside of 67.7% to $10. Would-be investors can also partake of the 4.02% dividend.

The business of this $1.24 billion company operates 33 specialty TV services, 39 radio stations, and 15 conventional television stations across Canada is booming. Corus’s so.da, an award-winning social and digital agency, will launch five new originals series starting this month. It’s producing serialized content in-house on a wide range of topics and trends, from baking to cosplay to sex education.

In April 2021, Corus Studios clinched a ground-breaking deal that involves the sale of over 200 episodes from its library to Hulu. The U.S. streamer will acquire Corus Studios content across home renovation, real estate, and food. Americans can watch Hulu’s new pickups later this year.

Utilities

At $15 per share, Superior Plus (TSX:SPB) deserves a spot in your dividend portfolio. You have a resilient utility stock that pays a handsome 4.8% dividend. Don’t expect much from the price appreciation, although the dividend payments should be sustainable.

The $2.64 billion pure-play energy distribution company from Toronto, Ontario, is a distributor of energy in Canada, Chile, and the United States. Management reported glowing financial and operational results in Q1 2021 (quarter ended March 31, 2021).

Luc Desjardins, Superior’s president and CEO, said, “We delivered strong financial and operating results in the first quarter with our strategic growth and operational initiatives on track with our plan.” Total revenue and net income growth versus Q1 2020 were 22.99% and 9.31%, respectively.

Great deals

The TSX’s rapid recovery in 2020 and a continued rally in 2021 reflect investors’ confidence in the market. Fortunately, you can still find great deals to help you achieve your financial goals.

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 Enghouse Systems Ltd. The Motley Fool recommends SUPERIOR PLUS CORP.

More on Dividend Stocks

Canadian stocks are rising
Dividend Stocks

3 Ways to Invest in Canadian Real Estate Under $20

Real estate can be a great way to make passive income, but you certainly don't have to invest a lot…

Read more »

grow dividends
Dividend Stocks

TFSA Wealth: 2 Oversold Canadian Stocks for a Retirement Fund

These top TSX divided stocks look attractive today for TFSA investors.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Create $1,487 in Passive Income From a Top TSX Dividend and Growth Stock

This top growth stock on the TSX today could bring in almost $1,500 in passive income and triple your investment…

Read more »

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

Renters Will Rise in Number vs. Homebuyers in 2022

The greater majority of Canadian renters doubts their ability to purchase a home in 2022 due to surging inflation and…

Read more »

Man holding magnifying glass over a document
Dividend Stocks

West Fraser Stock: A Sneaky Growth Stock No One Talks About

West Fraser (TSX:WFG)(NYSE:WFG) stock has been a sneaky growth stock when it comes to its dividend.

Read more »

Dividend Stocks

Inflation Investing: 2 Top TSX Dividend Stocks to Buy Now

TFSA income investors can get dividend yields of better than 6% to help offset the impacts of high inflation.

Read more »

Canadian Dollars
Dividend Stocks

Got $1,000? Invest it in Real Estate

If you've got an extra $1,000, you should check out cheap REITs like Allied Properties (TSX:AP.UN) for juicy income.

Read more »

Community homes
Dividend Stocks

Real Estate: 2 Top Dividend Aristocrats to Own Today

The recent correction in the real estate sector has made several real estate stocks like these two attractive to income-seeking…

Read more »