Got $5,000? Buy and Hold These 3 Value Stocks for Years

The silver lining in the current market environment is that it’s a great time to buy certain value stocks and hold them for the long-term.

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Investors continue to take their shares out of the market, worrying that the TSX today will continue to fall. And that could indeed be the case. Both the Bank of Canada and the Federal Reserve have warned that interest rates will continue to climb. While inflation has come down slightly, we could still see a recession in 2023.

The silver lining is that now is a great time to invest in long-term stocks you’ll want to hold for years, even decades. In fact, there are some value stocks out there that I would buy up right now, even if the market falls further. These are the top three that I would consider today.

Magna stock

Magna International (TSX:MG)(NYSE:MGA) is a top choice as car manufacturers continue to shift towards electric vehicles (EVs). In fact, entire governments have been making this shift too, including our own. Prime Minister Justin Trudeau recently announced that “all new light-duty car and passenger truck sales are to be zero-emissions by 2035, accelerating Canada’s target by 5 years.”

This new target will massively benefit Magna stock. Magna makes auto parts for some of the world’s largest car manufacturers. These parts include electronic components which will continue to be in high demand throughout the transition to EVs and for years to come.

Supply-chain disruptions have dropped shares of Magna stock off the map. Shares are down 29% year-to-date but have climbed 8% in the last month alone. Should a rebound continue, you’ll wish you had bought this stock. Meanwhile, it remains a valuable buy today with a 3.3% dividend yield to lock in.

NFI Group stock

Another great deal among value stocks is NFI Group (TSX:NFI). This Winnipeg-based company is also part of the transition to renewable vehicles, but in this case, it sells buses quite literally around the world. There has been a shift towards clean energy buses, and that means NFI is seeing a huge surge in orders for these types of vehicles.

NFI stock remains a solid “buy” rating for many economists, yet shares plunged recently, down 56% year-to-date. It’s now in oversold territory, with a relative strength index (RSI) of 19.22 as of this writing. This comes after the company warned that the third quarter wouldn’t be so great, thanks to inflation and a poor supplier.

Still, long-term investors should take this share price and run with it. NFI will no longer have this supplier, and inflation will eventually be tamed. So, you can lock in a 2.25% dividend yield at an insanely low price and look forward to growth for years.

TFI stock

Finally, TFI International (TSX:TFII)(NYSE:TFII) has to be one of the best deals out there. TFI stock climbed up, then came plunging down, only to recover almost all losses in the last three months. This came after it brought in US$525 million from the sale of one of its trucking services.

Given the ongoing need for trucking and logistics, TFI stock remains in a solid position to make major gains in the years to come. While shares are up 11% in the last three months, they’re still down about 6% year-to-date.

Still, over time, it’s one of the best value stocks to consider. Shares are up 4,662% in the last two decades, and it trades at just 14.75 times earnings as of this writing. And again, you can add a modest dividend yield of 1.11% to your portfolio as well.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Magna Int’l and NFI Group. The Motley Fool has a disclosure policy.

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