3 Incredibly Cheap Canadian Stocks Under $30 Today

If you are looking for cheap Canadian stocks, there are plenty to choose from right now. Here are three that trade under $30 per share right now.

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While the TSX Index has a 0.05% gain in 2022, many high-valuation, high-growth Canadian stocks are down 10%-30% in the past month alone. For example, Shopify (Canada’s largest and most well-regarded technology stock) is down nearly 25% in less than a month.

As interest rates are expected to rise, lofty valuation multiples are expected to decline. Hence, the correction in growth stocks. While I am still bullish on technology stocks for the long run, this could be a short-term headwind.

Consequently, it may not be a bad idea to increase exposure to some more value-focused areas of the market. In fact, here are three cheap Canadian stocks that each trade under $30 per share right now.

A cheap Canadian utility stock

If volatility is expected to increase in 2022, a nice safe haven investment is in utilities. Algonquin Power (TSX:AQN)(NYSE:AQN) stock declined more than 18% in 2021. Today, at $17.81 per share, it is attractive for a number of reasons.

Firstly, its dividend yield is 4.85%. That is much higher than its five-year average of 3.7%. If you are looking for a nice dividend-growth stock, Algonquin has a strong history of increasing its dividend by 7%-10% annually.

Secondly, on a price-to-earnings (P/E) basis it only trades at 13 times. This seems like a fair valuation for a low-risk company that is growing its rate base and earnings per share annually by 14% and 8%-10%, respectively.

A cheap Canadian energy stock

Oil has been roaring in 2022 and it doesn’t appear to be slowing anytime soon. Having some exposure to the cyclical energy sector may not be a bad idea. Cenovus Energy (TSX:CVE)(NYSE:CVE) looks well positioned for strength in 2022.

The company recently acquired Husky Energy and it has done an excellent job integrating those assets and selling non-core holdings. Consequently, the company’s debt structure is quickly dropping, and its overall cost and risk structure is rapidly improving. It certainly helps that oil is consistently trading over US$80 per barrel right now.

Today, this Canadian stock is cheap with a forward P/E ratio of only 6.5. It trades at a discount to its integrated peers. However, it shouldn’t, especially given that it is generating outsized levels of free cash flow when compared to competitors.

A bargain technology stock

If you are looking for a cheap Canadian growth stock, Sangoma Technologies (TSX:STC)(NASDAQ:SANG) is interesting. It trades at $19.60 per share today. That is down nearly 30% over the past year. While the stock has been declining, it has produced very strong revenue and EBITDA growth in 2021.

Sangoma provides communications-as-a-service software solutions to small-to-medium sized businesses across the world. It recently made a large acquisition in the U.S. that bolstered its geographic presence there. It also increased its cloud-based solution suite, which will enhance margins and create new selling categories.

Sangoma trades at a substantial discount to similar type communications businesses in the U.S. This Canadian stock only trades with an enterprise value-to-EBITDA ratio of 8, which is a bargain for a stock growing EBITDA at a +50% clip.

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 Robin Brown owns Algonquin Power & Utilities Corp., CENOVUS ENERGY INC., Sangoma Technologies Corporation, and Shopify. The Motley Fool owns and recommends Shopify.

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