Today, price-conscious investors can scoop four excellent stocks that trade at absurdly low prices. Baytex Energy (TSX: BTE)(NYSE: BTE) and Crew Energy (TSX: CR) are among the top performers on the Toronto Stock Exchange, yet the share prices are less than $10. Doman Building Materials (TSX: DBM) and Rogers Sugar (TSX: RSI) are cheap dividend machines.
Red-hot energy stocks
Energy was the top-performing sector in 2021, and it continues to be the leading sector in 2022. The year-to-date gain is more than 40%, and most of its constituents have rewarded investors with considerable capital gains and dividend increases this year.
Two red-hot energy stocks are non-dividend payers, but the returns are incredible. At $6.81 per share, Baytex Energy is up 74.2% year to date. Crew trades at only $6.50 per share, but current investors enjoy a 127.27% year-to-date gain. Both energy companies benefit from elevated crude prices.
Enormous cash flows
Baytex Energy operates in the Western Canadian Sedimentary Basin and Eagle Ford in the United States. Like most industry players, the $4 billion crude oil and natural gas producer has been generating enormous cash flows from the favourable pricing environment and significant production growth.
In the first half of 2022, Baytex’s free cash flow increased 100.37% year over year to $366.63 million. Its president and chief executive officer (CEO) Ed LaFehr said the company is well positioned for the future, because it has a solid foundation in the improving balance sheet.
Growth oriented
Crew Energy is a growth-oriented natural gas-weighted producer. The $988.44 million company operates exclusively in the world-class Montney play in northeast British Columbia. In the first half of 2022, Crew’s net income reached $87.32 million compared to the same period in 2021.
In Q2 2022, the 35,044 barrels of oil equivalent per day (boe/d) average production and $115.27 million adjusted funds flow were both new corporate records. Another highlight during the quarter was the 89% reduction in bank debt to $8.1 million relative to year-end 2021.
Dale Shwed, Crew’s president and CEO, said the impressive operational and financial results indicate the success of Crew’s two-year asset-development plan. Management commits to continue developing its world-class Montney assets, reduce per unit costs, and grow natural gas and condensate production.
Cash cows
Doman Building Materials and Rogers Sugar attract income investors for their relatively low prices and high dividend yields. You can purchase the former at $6.01 per share to partake of the 8.99% dividend yield. The share price of the latter $6.25, while the dividend yield is 5.75%.
The respective businesses aren’t hard to understand too. Doman is leading distributor of building materials in North America. In Canada, the $515.83 million company is the only fully integrated national distributor in the building materials and related products sector.
Sugar is a consumer staple, so the business of Rogers Sugar is enduring. The $645 million company also produces maple products. Management’s near-term plan is to expand refining capacity and increase its distribution centre logistic and rail infrastructures.
Capital growth or dividends
Baytex and Crew from the energy sector are best for capital growth. For dividend investors, Doman and Rogers Sugar are reliable income providers.
