November’s Top Value Stocks: 3 Great Options

Here are three top Canadian value stocks I think are incredible opportunities in this relatively overvalued market today.

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Investing in equities is far from a risk-free enterprise. However, finding top-notch value stocks in any market can help improve an investor’s risk-adjusted returns.

Diversification and fundamental analysis are key components of how investors should think about building a portfolio. Unfortunately, today, many investors emphasize growth over all else.

That said, for the value-oriented investor, here are three great options to consider this month.

November’s top value stocks: Manulife

Canadian insurance giant Manulife (TSX:MFC)(NYSE:MFC) could be one of the best value stocks on the market right now.

The company’s growth prospects remain excellent, with a strong and growing presence in emerging markets. Additionally, from a fundamentals perspective, there’s a lot to like about Manulife’s price-to-earnings ratio under seven and dividend yield of 4.6%.

What’s more, Manulife recently announced today that the company has raised its dividend. This dividend increase comes less than a day after Canadian regulators allowed for financial institutions to hike rates.

This adds to the compelling thesis to own Manulife long term. A company that has proven its ability to return value to shareholders over time, this dividend increase highlights this commitment. Additionally, this hike also solidifies the strength of Manulife’s overall business.

As far as top value stocks go, Manulife continues to get top marks in my books.

Alimentation Couche-Tard

According to analysts, Canadian convenience store operator Alimentation Couche-Tard (TSX:ATD.B) comes with some serious growth potential. In fact, this company is expected to double its earnings over the next five years. That kind of compound growth isn’t usually reserved for value stocks.

However, the company’s valuation of around 16 times earnings could certainly put this company in the value bucket. Indeed, concerns stemming from the pandemic appear to be following this stock. Additionally, investors seem to be concerned about the pace of acquisitions and growth potential with Couche-Tard right now.

I think these concerns are overblown. This is a solid value holding that long-term investors should consider. The company’s recent results highlight the strength of the company’s core business. I expect the analysts will be right with this stock over the long-term.

Agnico Eagle

Now, for a gold miner to top off the list. Canada-based Agnico Eagle (TSX:AEM)(NYSE:AEM) is a diversified mining company. The company has operations around the world, though its focus is in core mining-friendly jurisdictions — a good thing for investors.

The company’s recently announced merger with Kirkland Lake Gold is what’s gotten me excited about this stock. I see both gold miners’ valuations representing extreme value in this current market. Accordingly, I think there’s a lot of upside owning either stock right now.

This merger also provides the scale necessary for Agnico Eagle to compete among global juggernauts. The combined entity will be one of the largest miners in the word, with total production capacity of 3.4 million ounces this year alone.

There’s a lot to like about this value stock, and I remain bullish on its long-term outlook.

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 owns shares of Kirkland Lake Gold Ltd. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC.

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