2 Undervalued TSX Stocks to Buy Today

Here are two of the top undervalued stocks in Canada that long-term investors might want to have on their radars today.

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Several factors led to the recent most uptick in the market. The S&P/TSX Composite Index went through a rough month in September 2021, putting up its worst performance in the pandemic since the initial downturn in February and March 2020. A global recovery seems to be well underway as the benchmark index managed to hit new all-time highs.

While finding high-quality, undervalued stocks in such a market environment has become increasingly challenging, it is not impossible. There are a few undervalued stocks that you can add to your investment portfolio today to enjoy substantial long-term gains. Today, I will discuss two stocks that should be on your radar if you are looking for undervalued stocks.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD.B) is an excellent stock to consider if you are looking for an undervalued stock that can provide you with long-term growth. The company owns and operates a chain of over 14,000 convenience stores and gas stations worldwide. Alimentation Couche-Tard has become a massive company over the years through a successful acquisition strategy.

Operating in a defensive sector, the $51.77 billion market capitalization stock is a giant in its industry, and it still boasts a favourable valuation today. Alimentation Couche-Tard stock is trading for $48.09 per share at writing. The stock is currently trading for an almost 8% discount from its all-time high in August 2020. Investing in its shares could provide you with significant short- and long-term gains.

Magna International

Magna International (TSX:MG)(NYSE:MGA) is another excellent asset that you can consider adding to your portfolio for long-term gains. The $31.06 billion market capitalization is a giant in Canada’s automotive industry. The surge in popularity of the Electric Vehicle (EV) industry has provided a massive boost to Magna International as the company has geared itself to cater to the demand.

Magna International has a significant presence across 28 countries worldwide, producing over 3.7 million cars over the years. It is the third-largest supplier for the global automotive industry, specializing in electrified powertrains to capitalize on the growing demand for electric vehicles due to rising environmental concerns.

The stock is trading for $103.32 per share at writing, reflecting a discount of over 17% from its all-time high in June 2020. Investing in its shares could provide you with significant short- and long-term wealth growth if the stock recovers to its all-time high and goes beyond in the coming years.

Foolish takeaway

Value investing has come a long way over the years. With better access to information about the underlying companies, it has become easier for investors to identify undervalued stocks that boast significant long-term upside potential. Investing in the right company can provide you with access to a substantial growth of funds in the long run through capital gains.

Alimentation Couche-Tard and Magna International are two businesses that boast upside potential while trading for an attractive valuation. It would be wise to have these two stocks on your radar as a part of your portfolio today.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC. The Motley Fool recommends Magna Int’l.

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