The S&P/TSX Composite Index has been considerably volatile for the last few months, taking a toll on the performance of high-growth stocks across the board. However, it is not all bad news for stock market investors, particularly those looking for stocks trading for a bargain in this environment.
The last decade was terrific for growth investors who have seen several high-quality stocks put up massive gains in that time. We will likely see those equity securities hitting new heights in the coming years. There are a number of value stocks that should be on your radar today, considering the market environment right now.
Today, I will discuss two such stocks that you could add to your investment portfolio if you’re looking for strong value bets.
Manulife Financial
Manulife Financial Corp. (TSX:MFC)(NYSE:MFC) is a $51.94 billion market capitalization multinational insurance company headquartered in Toronto. Manulife has a strong record for providing its investors with shareholder dividends and delivering dividend hikes over the years. The company’s management has done well when allocating and investing its capital, making it one of the strongest entities among Canadian insurance companies.
At writing, Manulife stock trades for $26.55 per share, and it boasts a juicy 4.41% dividend yield. It trades for less than eight times its earnings, making it a value stock trading for a bargain compared to its peers. The imminent interest rate hikes could significantly improve its profit margins and boost its performance on the stock market in the coming months.
Alimentation Couche-Tard
Alimentation Couche-Tard Inc. (TSX:ATD) is a $57.45 billion market capitalization convenience store operator of multinational renown headquartered in Laval. The company has over 15,000 stores located across Canada, the U.S., Mexico, Ireland, Norway, Sweden, Denmark, and several other countries.
The company boasts strong and internationally diversified operations that generate more than enough cash flows for the company to provide you with substantial investment returns. Couche-Tard has recently moved away from its dual-class share structure, making it a stronger investment to consider for long-term investors.
At writing, Alimentation Couche-Tard stock trades for $53.92 per share, representing a 17.42 price-to-earnings ratio. It could be a viable investment to consider if you are looking for high-quality stocks trading for a bargain on the stock market.
Foolish takeaway
Several high-quality undervalued stocks on the Canadian stock market are finally well-positioned to provide you with the opportunity to invest in stocks that have long-term upside potential.
Recent developments in the broader market and within the companies themselves might result in significant capital gains as the stocks gain more traction on the TSX. Manulife Financial stock and Alimentation Couche-Tard stock could be excellent bets for value investors today.
