North American stocks have enjoyed a solid rebound in the month of October. However, the S&P/TSX Composite Index has a long way to go to recoup the losses it has incurred in a rough summer season. Today, I want to zero in on three TSX stocks that look like screaming buys in the face of a bear market. Let’s jump in.
You can rest easy after you snag this dirt-cheap TSX stock in this bear market
Sleep Country Canada (TSX: ZZZ) is a Toronto-based company that is engaged in retailing mattresses and bedding-related products in Canada. Shares of this TSX stock have plunged 39% in 2022 as of early afternoon trading on October 26. That has pushed the stock into negative territory in the year-over-year period. It is worth your attention in this recent bear market.
This company is set to release its third-quarter (Q3) fiscal 2022 results on November 4. In Q2 2022, Sleep Country delivered revenue growth of 18% to $227 million. Meanwhile, adjusted net income was reported at $25.7 million — up $7.7 million or 42% from the previous year. Diluted adjusted earnings per share (EPS) jumped 43% to $0.69.
Shares of this TSX stock currently possesses a favourable price-to-earnings (P/E) ratio of 8.1. Meanwhile, it offers a quarterly dividend of $0.215 per share. That represents a 3.8% yield.
This defensive stock is a fine option in an increasingly turbulent economic climate
Waste Connections (TSX: WCN) is also based in Toronto. This company provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. Shares of this TSX stock have increased 6% in the year-to-date period. This is a stock you can trust in a bear market.
The waste management market is geared up for big growth in the face of growing populations in North America. That makes Waste Connections a great defensive stock to target in late October. In Q2 2022, the company posted revenue growth of 18% to $1.81 billion. Waste Connections announced an increase in its fiscal year 2022 outlook. It now anticipates revenue of $7.12 billion and net income of $837 million.
This TSX stock is trading in solid value territory compared to its industry peers. Waste Connections offers a quarterly dividend of $0.23 per share. That represents a modest 0.6% yield.
One more top TSX stock I’d look to snatch up for the long term in this bear market
Capital Power (TSX: CPX) is the third TSX stock that looks like a screaming buy, as investors navigate a bear market. This Edmonton-based company develops, acquires, owns, and operates renewable and thermal power-generation facilities in Canada and the United States. Its shares have jumped 13% so far in 2022.
This company unveiled its second-quarter fiscal 2022 earnings on August 2. Revenues rose to $713 million in the second quarter of fiscal 2022 — up from $387 million in the prior year. Meanwhile, adjusted funds from operations (AFFO) nearly doubled to $180 million over $91 million in Q2 fiscal 2021.
Shares of this TSX stock are trading in favourable value territory compared to its competitors. Better yet, it offers a quarterly dividend of $0.58 per share. That represents a strong 5.1% yield.
