FIRE SALE: 3 TSX Stocks to Buy Before November

Investors should look to take advantage of volatility and buy undervalued TSX stocks like Canopy Growth Corp. (TSX:WEED)(NYSE:CGC).

| More on:
edit Sale sign, value, discount

Image source: Getty Images

The S&P/TSX Composite Index dropped 218 points on October 27. The only sector that finished the day in the black was telecom. Meanwhile, base metals, health care, and energy all suffered sharp retreats. Today, I want to look at three TSX stocks that are on sale in this volatile climate. Let’s dive in.

This TSX stock still looks undervalued right now

Real Matters (TSX:REAL) is an Ontario-based company that provides technology and network management solutions to mortgage lending and insurance industries in North America. It is heavily reliant on the real estate industries in Canada and the United States. Shares of this TSX stock have plunged 51% in 2021 as of close on October 27.

Investors can expect to see the company’s fourth-quarter and full-year 2021 results in November. In Q2 2021, Real Matters posted consolidated revenue growth of 9.6%. It was fueled by 17.5% revenue growth in its U.S. Appraisal segment. In the year-to-date period, Real Matters has launched eight new lenders in U.S. Title and six new lenders in U.S. Appraisal.

This TSX stock has struggled mightily in 2021, but the company still boasts a flawless balance sheet. Moreover, fundamentals are still strong for real estate in Canada and in major metropolitan areas in the United States. Real Matters last had a favourable price-to-earnings (P/E) ratio of 17. This stock has spent most of its time in oversold territory since late July.

A top green energy stock I’d snatch up on the dip

Earlier this month, I’d discussed why investors may want to duck oil and focus on undervalued green energy stocks instead. Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) still fits this profile. This Oakville-based company owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets. This TSX stock has plunged 4.9% week over week.

This company will unveil its Q3 2021 earnings on November 11. In the second quarter of 2021, Algonquin delivered revenue growth of 54% to $527 million. Meanwhile, adjusted EBITDA jumped 39% to $244 million. Algonquin has delivered strong earnings growth in recent quarters and is forecast for more success going forward.

Shares of this TSX stock possess an attractive P/E ratio of 12. Moreover, Algonquin has an RSI of 26, which puts it in technically oversold territory. It offers a quarterly dividend of $0.171 per share, which represents a solid 4.8% yield.

One more TSX stock to consider amid market volatility

Canopy Growth (TSX:WEED)(NYSE:CGC) is still one of the top cannabis producers in Canada. This sector has been disappointing since recreational legalization. However, Canopy Growth still holds some promise due to its strong position in the United States. This cannabis TSX stock has dropped 52% in 2021.

In the first quarter of fiscal 2022, Canopy Growth delivered 23% revenue growth. Meanwhile, it maintained the top market share in the tracked Canadian recreational cannabis market. Management still expects Canopy Growth to achieve positive adjusted EBITDA by the end of fiscal 2022.

This TSX stock is trending towards oversold levels with an RSI of 36. Like Real Matters, it has spent a lot of time in this territory since July.

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 of the stocks mentioned. The Motley Fool recommends Real Matters Inc.

More on Investing