The S&P/TSX Composite Index has started to rebound in the wake of strong earnings reports. And this may have Motley Fool investors thinking there aren’t undervalued stocks out there. But the TSX today has many stocks you can still consider. While it’s certainly more difficult, such stocks still exist.
So with that in mind, let’s look at three undervalued stocks that Canadian investors may want to consider on the TSX today.
Real estate boom
One of the best companies out there in a post-pandemic boom remains with Dream Industrial Real Estate Investment Trust (TSX:DIR.UN). The Canadian REIT owns and operates a worldwide portfolio, with key markets its focus in North America and Europe. It also pays a dividend yield of 4.14% as of writing.
If that weren’t enough, it’s one of the undervalued stocks to consider based on recent growth, coupled with its price-to-earnings (P/E) ratio. It recently make a $288-million equity offering, to help fund its $831 million debt from recent acquisitions. Even while it extends its portfolio – growth of 75% this year alone – it remains a strong buy at a P/E of just 8.55.
So in a sector that can be hard to find undervalued stocks, Dream is a dream scenario for Motley Fool investors.
A capital investment
Capital Power (TSX:CPX) is a $5 billion company with a massive amount of outperformance during the last few months. As the company continues to transition away from coal, investors have been swarming the stock. Yet it remains a strong performer that Motley Fool investors should consider.
Capital Power remains a strong option for long-term investors, especially with its pipeline of potential projects coming online. It focuses on sustainable energy growth, which while in the short term could be difficult, long-term this is a stellar buy. It should outperform the industry even in the next few years.
Cargojet (TSX:CJT) isn’t just a strong growth stock considering the rise back from the pandemic. Rather, it’s a solid defensive play as the world continues to depend on cargo increases. The company has been growing at a rapid pace through organic growth and partnerships. It shows how it’s not just willing to change but also adapt.
The cargo space continues to be beneficial for those looking for e-commerce growth. This is especially true once supply-chain disruptions go to the sidelines. Analysts continue to boost their projections for Cargojet stock. Right now, it remains one of the undervalued stocks to consider with an EV/EBITDA of 16.33.
Over the last decade, shareholders from undervalued stocks like Cargojet have seen an increase of 3,780%! That’s a compound annual growth rate of 44.12% as of writing.
Earnings season is sending many undervalued stocks into the outperform sector. However, these three still offer long-term Motley Fool investors to get in on strong returns. Especially at these prices, and with several reasons to buy them up for a boost to your income on the TSX today.