Stock markets continue to flail amid the global uncertainty. The S&P/TSX Composite Index continues to display volatility, going up and falling down, day after day. Inflationary conditions, rising interest rates, supply chain issues, and now the Ukraine crisis is constantly keeping stock market investors on their toes.
The uncertainty has resulted in a sell-off across the board, particularly among growth stocks on the stock market. The sell-off may have caused many TSX stocks to correct to reasonable valuations, but several stocks have entered oversold territory. Value-seeking investors now have a wealth of undervalued stocks on the TSX to consider.
Remember that not all businesses declined to unreasonable levels due to the sell-off. It is important to pick and choose stocks with the potential to deliver superior returns when things settle down.
Keeping that in mind, I will highlight two TSX stocks that you could consider adding to your portfolio at current levels.
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Magna International
Magna International Inc. (TSX: MG)(NYSE: MGA) is a $23.06 billion market capitalization mobility technology company that services automakers worldwide. It is one of the largest car parts manufacturers in Canada, and it boasts contracts with some of the biggest players in the global auto manufacturing industry. As more automakers move towards electric vehicles (EVs), Magna International will have a lot more room to grow.
Supply chain issues have been plaguing various industries across the board, and Magna International has been feeling it as well. At writing, Magna International stock trades for $77.40 per share, and it boasts a 2.98% dividend yield. Magna International stock trades for a discount of 38.20% from its all-time high in June 2021.
With a strong outlook and purportedly temporary weakness in its valuation right now, Magna International stock could be a steal for value-seeking investors right now.
goeasy
goeasy Ltd. (TSX: GSY) is a $2.13 billion market capitalization alternative financial company headquartered in Mississauga. The company owns and operates three businesses that offer loans to non-prime borrowers – an essential service when it is challenging for many Canadians to secure loans for various purposes.
goeasy stock has also suffered a significant downturn in its valuation amid the uncertainty in the market. Rising interest rates might be worrying investors. But goeasy’s management believes that there needs to be a significant interest rate hike for the company to feel its effects. The loan provider has a solid long-term growth strategy that it has set in motion, and its management is confident about it.
At writing, goeasy stock trades for $132.19 per share, and it boasts a 2.75% dividend yield.
Foolish takeaway
Magna International and goeasy are two companies with solid long-term growth strategies and look well-positioned to deliver stellar shareholder returns. The dividend payouts can also provide you with wealth growth through a passive income stream while you leverage long-term capital gains.
If you have been searching for undervalued stocks that can provide you with significant wealth growth, these two stocks could be worth investing in at current levels.
