The S&P/TSX Composite Index fell 113 points on September 14. In early August, I’d looked at value stocks that were worth buying as volatility picked up. Today, I want to look at three more value stocks that you should consider snatching up before the end of the summer. Let’s dive in.
This under-the-radar telecom looks discounted right now
Cogeco (TSX:CGO) is a Montreal-based company that operates in the communications and media sectors in North America. Its shares have increased 13% in 2021 as of close on September 14. However, the stock has dropped 6.1% over the past six months.
The company unveiled its third-quarter 2021 results on July 14. Revenue rose 3.7% from the prior year to $649 million. Meanwhile, adjusted EBITDA rose 1.3% to $302 million. Profit rose to $105 million compared to $97.5 million in the third quarter of 2020. Moreover, free cash flow jumped 14.6% to $136 million.
Shares of this value stock last had a price-to-earnings (P/E) ratio of 10. That puts Cogeco in favourable value territory. It offers a quarterly dividend of $0.545 per share, which represents a 2.3% yield.
Don’t sleep on this promising value stock
Leon’s Furniture (TSX:LNF) is a Toronto-based company that operates as a retailer of home furnishings, mattresses, appliances, and electronics. Shares of Leon’s have climbed 10% in the year-to-date period. This value stock is up 22% from the prior year. Just over a year ago, I’d suggested that investors should snatch up Leon’s stock.
Investors got a look at Leon’s second-quarter 2021 results on August 11. It delivered record revenue of $588 million — up from $416 million in Q2 2020. This growth occurred in the face of continued retail closures, which was an impressive feat. It delivered same-store sales growth of 41%. Meanwhile, e-commerce sales increased 46% from the second quarter of 2020. Leon’s has put together strong results due to its superior online shopping offerings. Adjusted EBITDA was reported at $94.8 million — up from $63.1 million in the previous year.
What makes Leon’s a value stock? Its shares possess an attractive P/E ratio of 9.8. Leon’s last paid out a quarterly distribution of $0.16 per share. That represents a 2.7% yield.
One more value stock to buy today
Inflation has picked up in 2021. Commodity prices have enjoyed a significant uptick compared to the previous year. Value stocks like Russel Metals (TSX:RUS) have been in a perfect position to benefit. This Mississauga-based company distributes steel and other metal products in North America. Its shares have climbed 48% in 2021. The stock is up 88% from the prior year.
The company unveiled its second-quarter 2021 earnings on August 5. Revenue had climbed to $1.95 billion for the first six months of 2021 — up from $1.40 billion in the prior year. Meanwhile, adjusted EBITDA soared to $307 million compared to $71 million for the first six months of 2020. Russel Metals was a big beneficiary of strong market conditions in the metals space.
This value stock possesses a favourable P/E ratio of 10. It last paid out a quarterly dividend of $0.38 per share. That represents a solid 4.5% yield.
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 Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool recommends LEONS FURNITURE.