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.
