3 Cheap Metal TSX Stocks to Snatch Up in September

Base metals are gaining momentum. That should spur investors to target TSX stocks like Russel Metals Inc. (TSX:RUS) and others today.

| More on:

Image source: Getty Images

The S&P/TSX Composite Index was down 88 points in late-morning trading on September 6. The only sectors that were trading in the green to start the new week were battery metals, base metals, and industrials. Today, I want to zero in on three metal TSX stocks that look undervalued in the late summer. Let’s jump in.

This undervalued metal TSX stock also boasts strong income

Russel Metals (TSX:RUS) is the first metal TSX stock I’d target today. This Toronto-based metal distribution company operates in North America. Its shares have dropped 16% in 2022 at the time of this writing. That has pushed Russel into negative territory in the year-over-year period.

The company released its second-quarter (Q2) fiscal 2022 results on August 10. It reported revenues of $1.36 billion — up from $1.06 billion in the prior year. Meanwhile, net earnings rose to $124 million, or $1.96 per share, compared to $118 million, or $1.88 per share, in the second quarter of fiscal 2021. Russel benefited from improved steel market conditions in the first half of the fiscal year. Moreover, it announced that some of its supply chain issues had also been remedied.

Shares of this TSX stock currently possess a very favourable price-to-earnings (P/E) ratio of 3.8. It announced a quarterly dividend of $0.38 per common share in Q2 2022. That represents a strong 5.4% yield.

Ivanhoe Mines is a cheap metal stock worth targeting in early September

Ivanhoe Mines (TSX:IVN) is a Vancouver-based TSX stock that is engaged in the exploration, development, and recovery of minerals and precious metals located primarily in Africa. This metals stock has plunged 20% in the year-to-date period. Its shares have declined 17% compared to the same time in September 2021.

Investors were able to view Ivanhoe’s Q2 fiscal 2022 earnings on August 15. The company reported a profit of $351 million in the second quarter of fiscal 2022 — up from a loss of $108 million in the second quarter of fiscal 2021. Meanwhile, quarterly production hit a record as it produced 87,314 tonnes of copper in concentrate. Ivanhoe finished the quarter with cash and cash equivalents of $507 million, which is encouraging going forward.

This TSX stock last had a P/E ratio of 16. That puts Ivanhoe Mines in attractive value territory at the time of this writing.

One more discounted TSX stock to snag right now

Stelco (TSX:STLC) is the third metal TSX stock I’d look to snatch up in early September. This Hamilton-based company is engaged in the production and sale of steel products in Canada, the United States, and around the world. Its shares have dropped 11% so far in 2022. The stock has plunged 30% in the year-over-year period.

In Q2 2022, Stelco achieved revenue growth of 13% to $1.03 billion. Meanwhile, shipping volume increased 14% to 677,000 tonnes. This TSX stock possesses a very attractive P/E ratio of 1.4 at the time of this writing. It offers a quarterly dividend of $0.30 per share, which represents a 3.3% yield.

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 Ambrose O'Callaghan 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

A stock price graph showing growth over time
Metals and Mining Stocks

Why Cameco Stock Soared 23% This Year

Cameco stock continues to ride high on strong supply/demand fundamentals and growing momentum in the nuclear industry.

Read more »

growing plant shoots on stacked coins
Stocks for Beginners

1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up…

Read more »

silver metal
Metals and Mining Stocks

Buy the Dip: 1 Dividend Stock Due to Shine

This dividend stock's dividend just rose higher as the price of silver dropped, but don't let that scare you off…

Read more »

Metals and Mining Stocks

Iron Stomach? 2 Riskier Stocks That Could Pay Off Big Time in the Future

Two TSX stocks could deliver greater earnings to investors with higher risk appetites.

Read more »

Gold bullion on a chart
Metals and Mining Stocks

This Gold Stock Just Dipped 5%: Time to Buy?

This gold stock has been rising higher and higher but recently went through a 5% dip in share price. So,…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Stocks for Beginners

Pan American Silver: Buy, Sell, or Hold?

PAAS stock (TSX:PAAS) is up 44% in the last year alone! But it's not all down to the rise in…

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Strong fundamentals should continue to boost Cameco stock's long-term outlook, as the nuclear industry's momentum continues.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Lundin Mining Stock: Buy, Sell, or Hold?

Lundin (TSX:LUN) stock saw its shares surge this last year with the price of copper, and more strong guidance could…

Read more »