Motley Fool investors continue to want cheap stocks on the TSX today. I don’t blame them. But it’s becoming harder and harder to find those diamonds in the rough. After all, an economic recovery is well underway! It’s been about seven months of gains on the TSX until a recent pullback. That’s the longest run in four years.
But don’t worry, here at the Motley Fool, we’ve got your back. Here are three cheap stocks I would consider for a share price under $30 and based on fundamentals.
TELUS
First up on cheap stocks, I would consider TELUS (TSX: T)(NYSE: TU), a stellar long-term option for Motley Fool investors. TELUS stock came out with a major announcement this week, partnering with General Motors Canada to add 5G capabilities to its cars by 2025. It also will allow vehicles 2019 or later to have enhanced 4G LTE capabilities.
This move takes another step closer towards autonomous vehicles, allowing for faster, more reliable, and secure responses. Yet shares didn’t change all that much, so I would consider buying TELUS stock before the market catches on. Shares are up 18% in the last year on the TSX today, but the stock remains at $29 per share as of writing.
And it’s the perfect long-term option among cheap stocks, with shares rising at a compound annual growth rate (CAGR) of 12.7% over the last decade. It also offers a 4.33% dividend yield that’s grown at a CAGR of 9% during that time.
Ballard Power
Sticking with the electric vehicles theme, I would then consider Ballard Power Systems (TSX: BLDP)(NASDAQ: BLDP) among cheap stocks to buy. While the company isn’t aligned with personal vehicles, it’s providing the same power to commercial use, such as buses, train, marine vehicles, and even the military. It’s all going towards Ballard Power’s portfolio.
But Ballard is down year to date by 28% on the TSX today. Why? Because it rose too high, too fast back in January. Add to that the fuel cell shortage, and the company is at a bit of a standstill. That provides investors with an opportunity to get in on this stock while it’s still considered one of the cheap stocks.
Shares trade at $21.50 as of writing, and it has a price-to-book (P/B) ratio of 3.6, making it relatively valuable. Shares are up 1,491% over the last decade as well for a CAGR of 31.8%!
Aecon
Now, let’s change tactics and go somewhere else. I’ve been speaking a lot about construction lately and remain confident that Aecon Group (TSX: ARE) is a solid investment for Motley Fool investors. The company had a standstill during the pandemic but continued to win deals during that time. It now has a $6.5 million backlog to fall back on, along with these new projects.
Shares are up 28% year to date, yet the company is a steal with a price-to-earnings ratio of 13.67, and a P/B ratio of 1.5. Plus, it has a solid dividend yield of 3.93% as of writing. Shares have climbed 242% in the last decade on the TSX today for a CAGR of 13.07% as of writing. Meanwhile, that dividend has grown at a CAGR of 12.34%. And it still trades at just $20.77 per share as of writing.
