3 Top Canadian Value Stocks to Buy Right Now

Here are three top value stocks I think every long-term investor should consider right now, as we navigate an expensive market.

| More on:
Value for money

Image source: Getty Images

As the fall approaches, investors may be looking to add some defensiveness to their portfolios. Indeed, as the market melts up today, investors may not necessarily feel that adding value stocks makes sense. However, in this type of hyper-growth market, hedging one’s bets is never a bad idea.

Here are three top value stocks I’d invite investors to consider right now.

Top value stocks to buy: Manulife

One of the top value stocks on my list for some time, Manulife (TSX:MFC)(NYSE:MFC) continues to provide a compelling value thesis. Indeed, this insurance company’s valuation of around seven times earnings is dirt cheap. Compared to nearly any financials stock, Manulife comes in near the bottom of the pack in terms of its valuation (or top of the pack, depending on how you look at it).

Manulife is an insurance company with excellent growth prospects, particularly in Asia. The company’s booming overseas wealth management and insurance business is only expected to get larger. Accordingly, I view this large-cap stock as a safe, defensive value play right now.

Alimentation Couche-Tard 

Another one of the top value stocks I’ve been pounding the table on of late is Alimentation Couche-Tard (TSX:ATD.B). This purveyor of gas stations and convenience stores has been hit hard as a result of the pandemic. However, those looking for a company with a strong recovery thesis will like this play.

The company’s outlook over the next five years is impressive. Couche-Tard expects to double its earnings per share over this time frame, as the company pursues organic and M&A-driven growth.

I think this is a company long-term investors would be remiss to ignore right now.


Last but not least, we have Bank of Nova Scotia (TSX:BNS)(NYSE:BNS). This is one of the top value stocks in the banking sector that I think has the potential to really outperform over the long run.

Like Manulife and Couche-Tard, Scotiabank also boasts strong international growth potential. This Canadian bank has a growing presence in Latin America — a region I see as high-growth (albeit with higher risk).

The company’s earnings have ballooned over the past year, nearly doubling from pandemic levels last year. That’s impressive. And I think more of the same is likely on the horizon.

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 Chris MacDonald has no position in any stocks mentioned. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC. The Motley Fool recommends BANK OF NOVA SCOTIA.

More on Dividend Stocks

A plant grows from coins.
Dividend Stocks

2 Young TSX Stocks You’ll Be Glad You Bought in 10 Years

Youth means nothing when you plan to hold strong companies long term. These two TSX stocks should therefore be first…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

Is it a Trap? 3 TSX Stocks With Ultra-High Dividend Yields 

Who doesn’t love dividends? But the high-interest rate environment makes ultra-high dividends unsustainable. Are these stocks a value trap?

Read more »

Value for money
Dividend Stocks

3 Value Stocks for Superior Returns in 2023

Given their solid underlying businesses, stable cash flows, high dividend yields, and attractive valuations, these three undervalued TSX stocks could…

Read more »

Financial technology concept.
Dividend Stocks

2 TSX Value Stocks to Buy for Peace of Mind (and a Crazy-Good Deal)

2 TSX stocks that could outperform in the long term.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

2 of the Best Canadian Dividend Stocks I’d Buy Before March 2023 Ends

Here are two of the best Canadian dividend stocks you can buy on a dip in March 2023 to hold…

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

3 Value Stocks That Smart Investors Should Seriously Consider

You get it all with these stable stocks. They may have less growth now, but will have incredibly high growth…

Read more »

Chalk outline of two arrows pointing in opposite directions
Dividend Stocks

2 TSX Stocks I’d Buy Instead of Sitting on Cash

These two TSX stocks are my top choices if you want companies that are going to recover quickly after a…

Read more »

Canadian Dollars
Dividend Stocks

Want $1,000 Per Quarter in Passive Income? 2 TSX Stocks That Do the Job

Are you looking to earn $1,000 in passive income each quarter? These two TSX dividend stocks can help you achieve…

Read more »