3 Screaming Buys to Snag in a Bear Market

Canadian trying to navigate a bear market should considering snagging screaming buys like Sleep Country Canada Inc. (TSX:ZZZ) right now.

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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.

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. The Motley Fool has a disclosure policy.

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