There are many who believe a growth-to-value rotation is underway in the market today. For those who believe this to be the case, now would be the time to consider undervalued stocks today.
Fortunately, the TSX is chock full of such names right now — many of which have plenty of growth potential over the long term. Here are three such top stocks investors must consider adding to their portfolios.
BlackBerry
Perhaps the only truly Canadian meme stock on the list is BlackBerry (TSX: BB)(NYSE: BB).
Why am I including a meme stock on this list?
Well, mainly because there’s more to BlackBerry than just frenzied retail investor buying right now. The company has some real catalysts in its favour.
For example, the company’s partnership with Amazon to develop cloud-connected software has resulted in the company’s BlackBerry Ivy platform piquing the interest of a large investor base. Given the growth potential of the connected car market, this is a big deal. The company’s partnerships with other key players in the next-gen autonomous vehicle segment also represent tonnes of growth potential.
This software play is one with understated and under-respected growth potential in the market today.
Fortis
This Dividend Aristocrat remains a top pick for most growth and income investors.
And for good reason.
Fortis (TSX: FTS)(NYSE: FTS) is a dividend-growth gem. It has been consistently increasing its distribution each year for nearly 50 years. That’s an impressive record to hold, if you ask me!
Besides its unmatched record, this utility play offers a stable dividend yield to long-term investors. Currently, it is offering a decent 3.7% dividend yield. Given Fortis’s track record, investors can expect its current yield to soar higher over time.
Fortis is indeed a high-quality defensive income play regardless of its valuation, especially in this environment. Investors looking for stable earnings and dependable income should consider adding this stock to their watch lists today.
Manulife
Manulife (TSX: MFC)(NYSE: MFC) is a top financial stock in Canada right now, mostly because of its relative valuation compared to its peers today.
Indeed, this insurance player is a big name in wealth management, providing various insurance-related products and services to customers in over 20 countries. The company’s growth profile is excellent, with Manulife focusing in on key growth markets in Asia. Long-term investors ought to like this geographical focus. Certainly, if growth continues to materialize in the company’s core markets, much more upside could be on the horizon for shareholders long term.
The company’s diversified operations include a range of non-insurance lines of business. Accordingly, I don’t view Manulife as a pure play on the insurance business. Rather, I think this company is more of an integrated financials juggernaut.
The company’s 4.5% dividend yield is one of the best in this segment right now. Indeed, this bond proxy ought to make every long-term investor’s top stocks list right now.
