The S&P/TSX Composite Index has extended its broad gains in 2021. Investors are gorging on the prolonged bull market. However, it is also hard to hunt for discounts in this environment. Fortunately, a recent bout of volatility has seen some value stocks sprout up. Today, I want to look at two cheap TSX stocks that are worth snatching up in the second half of November. Let’s dive in.
Why this alcohol focused TSX stock is undervalued today
Corby Spirit and Wine (TSX: CSW.A) is a Toronto-based company that manufactures, markets, and imports spirits and wines. Shares of this TSX stock have climbed 3.3% in 2021 as of close on November 17. The stock is up 8.1% from the prior year. I’d suggested that investors should stash Corby stock earlier this month.
The company released its first-quarter fiscal 2022 results on November 10. Adjusted revenue fell 9% year over year to $41.1 million. Meanwhile, adjusted net earnings plunged 27% to $8.9 million. Investors should not panic. Earnings are down from the prior year due to Corby’s historically strong performance in the first quarter of fiscal 2021. Meanwhile, the company has also suffered from supply chain delays.
Corby’s adjusted net earnings are still up solidly compared to its pre-pandemic levels. CEO Nicolas Krantz stated that Corby’s underlying consumer demand was encouraging in the first quarter. Investors should keep an eye on the company as alcohol sales typically enjoy a spike during the holiday shopping season.
In Q1 FY2022, Corby announced a quarterly dividend of $0.24 per share, up 14% from the previous quarter. It represents a strong 5.3% yield. Shares of this TSX stock possess a favourable price-to-earnings ratio of 19.
A resurgent housing market can bring back this cheap tech stock
Real Matters (TSX: REAL) is another Ontario-based company that provides technology and network management solutions to mortgage lending and insurance industries in North America. I’d suggested that investors should snatch up this TSX stock on the dip in late October. Real Matters stock has plunged 57% in 2021 as of close on November 17.
The company unveiled its fourth quarter and full-year 2021 results on the same day. Consolidated revenues rose marginally to $125 million in Q4 2021. Meanwhile, profit fell 3.6% to $9.1 million. Moreover, its adjusted net earnings were more than halved year over year to $7.5 million or $0.09 per diluted share.
Investors should not be too discouraged by the company’s rough stretch in 2021. For one, the North American housing market continues to demonstrate strong fundamentals as we look ahead to the next year. Real Matters is still in a good position to benefit from this climate.
Real Matters’ management is confident in the company’s ability to meet its targets stretching into fiscal 2025. It aims to double its U.S. appraisal market share and triple its U.S. title market share from fiscal 2020 levels.
This TSX stock last had an attractive P/E ratio of 15. Real Matters possesses an RSI of 30, putting it just outside of technically oversold territory. Investors should look to snag this TSX stock as it offers a great price in late 2021.
