Buy Alert: 3 Value Stocks That Won’t Be Cheap Forever

As the Canadian economy continues to reopen and create opportunities, these are three of the best Canadian value stocks to buy today.

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When the vaccines were first announced, there was a lot of optimism. It was quickly apparent, though, that it would take some time to get them into everyone’s arms. And after a third wave in the winter, we are only now starting to see the full effects of the economy reopening, which creates a lot of buying opportunities and tonnes of value in several stocks.

The long-awaited recovery and reopening are here. And several stocks are benefitting, such as restaurants and retail.

So if you’re looking to buy these value stocks, I’d pull the trigger soon. They are bound to rally any day now.

A top Canadian restaurant stock offering a tonne of value

Hands down, one of the best stocks for investors to buy today is Boston Pizza Royalties (TSX:BPF.UN).

The ongoing reopening is crucial for the entire country. However, one industry that will see some of the biggest benefits is restaurants.

As restrictions are lifted and indoor dining returns across the country, Boston Pizza can expect to see a major recovery in sales. So for investors who own the royalties fund, you stand to see a massive increase in revenue and income over the coming months. This is why it’s one of the best value stocks to buy now.

The fund is set up to receive a royalty on all the sales each restaurant does. The fund then pays what little administrative fees it has and returns the rest to shareholders.

So over the coming months, you can expect that royalty income to increase, which means you can expect Boston Pizza’s income to increase as well as its dividend.

The dividend is still down almost 50% from where it was before the pandemic. So not only can you expect some major increases in dividend income over the coming months, but the stock should rally as a result.

This makes Boston Pizza one of the best value stocks to buy today.

A top Canadian retail stock

In addition to restaurants, the retail industry also stands to see a major recovery over these next few months. That’s why I’d consider a top stock like Roots (TSX:ROOT) sooner rather than later.

Roots is an iconic Canadian company and a consumer favourite. The value stock is integrated well, has a strong and loyal brand following, plus it’s cheap, making it the perfect stock to buy today.

In addition, it’s been regrouping with its strategy and reoptimizing its operations since even before the pandemic began. This should help to make operations more efficient and lead to higher margins for the stock.

So, on top of the potential you have as its recovers from the pandemic, Roots also has the potential to continue expanding its margins and growing its profitability.

Over the next few years, it could easily surpass its pre-pandemic level of sales and income. This is why I’d look to take advantage of this incredible discount and buy this value stock today.

A cheap Canadian media stock

Another high-quality stock offering investors a tonne of value today is Corus Entertainment (TSX:CJR.B)

Over the last year, Corus was one of the best stocks to buy as it was the cheapest value stock in Canada. The company was impacted early in the pandemic and has been recovering for a while, unlike the other two.

And while it’s been recovering for some time, the company is still extremely cheap and still offers plenty of upside potential as it continues its long recovery.

Corus has been performing well and weathering the storm as best it can over the last year. However, investors will want to see a bit more from the company before it can recover fully.

The market will also want to see the company continue to pay down debt and improve its financial position.

If it can do this successfully, and there’s no reason it shouldn’t, not only can you expect some significant capital gains as the stock rallies back to fair value, but Corus could even consider increasing the dividend again in a few years down the road.

So while it trades at this insane discount at just 6.7 times its forward earnings, Corus is easily one of the best Canadian value stocks to buy.

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 Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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