Got $1,000? 3 Stocks That Are Excellent Value

A $1,000 seed capital can buy one to three stocks with excellent values and strong profit potentials.

| More on:
money cash dividends

Image source: Getty Images

The TSX ended lower week on week (0.4%) on April 8, 2022, although it wasn’t a cause for alarm. Canada’s primary equities benchmark remains in record territory with lots of buying opportunities. A $1,000 seed capital should be enough to scoop up stocks at excellent values.

Wesdome Gold Mines (TSX:WDO) and Ero Copper (TSX:ERO) in the mining sector are awesome picks today. Rogers Sugar (TSX:RSI), a consumer staple stock, is not only budget-friendly, but also an extra generous dividend payer. Their share prices are good entry points today, so you’ll definitely get your money’s worth and more.

TSX30 winner

Wesdome Gold is a perennial TSX30 winner, and one of only four stocks that made the list every year since the launching of the flagship program for growth stocks three years ago. In 2021, this gold stock ranked tenth overall. The total return in the last 5.01 years is 316.76% (33% CAGR).

The $2.08 company that produces doré bars and silver as by-product aims to become Canada’s next intermediate gold producer. Wesdome’s two operating mines, The Eagle River Underground Mine (Ontario) and Kiena Complex (Quebec) combine to produce significant ounces of gold annually.

In 2021, Wesdome reported strong operational and financial performance. About 90.34% of the 41,559 ounces total gold production were sold resulting in a 274% increase in operating cash flows versus 2020. Revenue grew 22% year over year to $262 million, while net income climbed 159% to $131.3 million.

Wesdome trades at $14.67 per share and is up 27.45% year to date. Besides the market analysts’ forecast of a 36.3% gain in 12 months, you have an excellent safety net during this period of uncertainty.

Organic growth plans

Ero Copper (rank 29) is a co-winner of Wesdome in the 2021 version of the TSX30. Performance-wise, the total return of this copper stock in 4.47 years is 325.89% (38.28% CAGR). At $20.23 per share, current investors are ahead by only 4.82%. However, market analysts see a return potential between 24.9% and 73.4% in 12 months.

The $1.82 billion high-growth, clean copper producer from Vancouver operates in Brazil. Besides underground mines and open pit mines, Ero has a development project in the country. Its CEO, David Strang, described 2021 as another exceptional year due to the record copper production and strong financial results.

Last year, Ero’s top and bottom-lines grew 52.1% and 285.9% versus 2020. Notably, cash from operations jumped 124% year over year to $364.6 million. According to Strang, the company made significant progress in solidifying its transformational organic growth plans. Management aims to produce 100,000 and 60,000 ounces of copper and gold, respectively, by 2025.  

Pure dividend play

Rogers Sugar is a pure dividend play. At only $6.30 per share (+7.41% year to date), the dividend offer is a juicy 5.71% dividend. While sugar is a low-growth business, would-be investors need not worry about a slowdown because sugar is a consumer staple.

After Q1 2022, Rogers Sugar President and CEO Mike Walton expressed confidence about the financial outlook this year. Management will continue to build on improved gross margin in the sugar segment and expect stable volume, including maple, for the remainder of 2022.

Top picks

Canadians with investment appetites but limited budgets aren’t without profitable prospects on the TSX. Wesdome, Ero Copper, and Rogers Sugar are top picks today for their excellent values.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Monday, January 30

Corporate earnings and the Fed’s interest rate decision will remain on Canadian investors’ radar this week.

Read more »

Electric car being charged
Tech Stocks

Is Now The Time to Buy EV Stocks?

EV stocks may be down now, but don't count them out. They'll soon be back up again, so now may…

Read more »

Hands protect a sprout in fertile soil.
Metals and Mining Stocks

Nutrien Stock: How High Could it Go in 2023?

After Nutrien's record 2022 driven by strong pricing power, 2023 should see more of the same, driving the stock much…

Read more »

Gold bullion on a chart
Metals and Mining Stocks

Silver and Gold Stocks: Worth Owning in 2023?

The stock market took a breather from bears as inflation slowed. But recession fears still loom. Should you buy gold…

Read more »

Metals and Mining Stocks

BUY ALERT: Why I’m Snagging Russel Metals (TSX:RUS) Stock Today

Russel Metals Inc. (TSX:RUS) has started hot in 2023 and boasts nice value and a strong dividend in late January.

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Wednesday, January 25

TSX investors may want to keep a close eye on the Bank of Canada’s monetary policy event today.

Read more »

silver metal
Metals and Mining Stocks

How to Invest in Precious Metals Without Buying a Mining Stock

Do you want to invest in precious metals without buying a mining stock? This unique business can offers a lower-risk,…

Read more »

A tractor harvests lentils.
Metals and Mining Stocks

5 Things to Know About Nutrien Stock in January 2023

Nutrien Ltd. (TSX:NTR) stock has put together a nice run on the back of strong fundamentals and geopolitical tensions.

Read more »