2 Canadian Stocks You Don’t Want to Miss While They’re Trading Cheap

Here are two of the best Canadian stock to own for years trading exceptionally cheap today.

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In this market, when stocks have been rallying consistently for over a year and continue to set new all-time highs, it goes without saying that not many Canadian stocks are cheap. So when you do find stocks that offer opportunity, it’s crucial to buy them while they still offer value.

There’s no telling what opportunities may present themselves going forward. So when a stock is undervalued, and you believe it to be high-quality and it fits in your portfolio, investors should be looking to pull the trigger immediately.

Especially in this market environment, there are numerous catalysts that can cause these stocks to rally. So you don’t want to miss these significant opportunities.

With that in mind, if you’re looking for some Canadian stocks to buy while they are cheap, here are two of the best opportunities to consider today.

A top Canadian utility stock that won’t trade cheap for long

Utilities are excellent investments, and it’s not often you get the chance to buy them at a discount. So with Algonquin Power and Utilities (TSX:AQN)(NYSE:AQN) trading ultra-cheap around its 52-week low and below $18 a share, it’s a steal.

Algonquin is in the middle of a massive growth plan that will see the stock invest up to $20 billion over the next five years. So a few weeks ago, when it acquired Kentucky Power and Kentucky Transmission, it was part of the plan. Furthermore, it’s also part of the plan to issue stock to pay for these acquisitions sometimes.

So when the stock issued shares at $18.15 last week on October 26, it pushed down the market price of Algonquin. For long-term investors, it’s just a simple blip in the market price while the stock actually improves its long-term outlook by making an attractive acquisition.

Plus it offers investors the chance to buy more at this price or for new investors to take an initial position. Currently, the Dividend Aristocrat offers a yield of more than 4.8%.

So if you’re looking for a cheap Canadian stock to buy now, Algonquin is a great choice, but it likely won’t be this cheap for very much longer.

A top bank stop to buy while it’s still cheap

Although the bank stocks have recovered from the pandemic, ultra-low interest rates have been weighing on their profitability and potential for growth. So these stocks already offer the potential to rally over the short-term as interest rates start to rise. Therefore, a stock like Bank of Nova Scotia (TSX:BNS)(NYSE:BNS), which has also been underperforming its peers lately, offers a tonne of potential.

Many of the Canadian banks have seen strong recoveries in operations and share prices. BNS is no different. However, because the stock has a significant amount of international operations, especially in the Caribbean, where tourism and, therefore, the economies continue to be significantly impacted, it’s a different story.

So, for now, the stock has been lagging behind its peers while investors wait for more promising recovery potential from its international operations. That shouldn’t be far off, though, as the world continues to emerge from the pandemic. So now looks like an excellent time to take advantage of the discount in the top Canadian bank stock while it’s still cheap.

Right now, the Bank of Nova Scotia trades for just 10.5 times its forward earnings and pays a dividend that yields more than 4.3%. That makes it the cheapest of all the major Canadian bank stocks, in addition to offering the highest yield of its peers.

So if you’re looking to buy the best Canadian stock that’s trading cheap, Bank of Nova Scotia is undoubtedly one of the top stocks to consider 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 Daniel Da Costa owns shares of ALGONQUIN POWER AND UTILITIES CORP. The Motley Fool recommends BANK OF NOVA SCOTIA.

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