3 Dirt-Cheap TSX Stocks I’d Snatch Up Before the Holidays

Canadians should look to snatch up dirt-cheap TSX stocks like Park Lawn (TSX:PLC) and others before the holidays.

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published December 8, 2022 5:00 pm EST

The S&P/TSX Composite Index was up 36 points in late-morning trading on December 8. This came after two straight triple-digit point losses for the index to open the first full week of the month. Market uncertainty has continued to build after a yield curve inversion reignited fears of a looming recession. Canadian investors should see this as a time of great opportunity. Today, I want to look at three TSX stocks that look dirt cheap in the final weeks of 2022. Let’s jump in.

This undervalued TSX stock has long-term potential

Park Lawn (TSX: PLC) is a Toronto-based company that provides death care products and services in Canada and the United States. This cheap TSX stock has plunged 37% in 2022 at the time of this writing. Despite its poor performance this year, Park Lawn is a stock that is worth your attention in the years ahead.

The death care industry is geared up for growth, as North America wrestles with a rapidly aging population in the decades ahead. Market researcher the Business Research Company recently estimated that this industry was valued at $113 billion in 2022. This report forecasts that the death care market will be worth $151 billion in 2026. That would represent a compound annual growth rate (CAGR) of 7.6% over the forecast period.

Shares of this TSX stock currently possess a price-to-earnings (P/E) ratio of 24. That puts Park Lawn in favourable value territory compared to its industry peers. Meanwhile, it offers a quarterly dividend of $0.114 per share. That represents a modest 1.7% yield.

Here’s why this cheap bank stock is my top pick right now

Scotiabank (TSX: BNS) should require no introduction for most Foolish readers. This top bank stock is sometimes called “The International Bank” due to its significant global presence, particularly in Latin America. Shares of this top TSX stock have plunged 25% in 2022. Now is a great time to snatch up this top bank stock for cheap.

Like its peers, Scotiabank unveiled its final batch of fiscal 2022 earnings in late November. In fiscal 2022, the bank posted adjusted net income of $10.7 billion, or $8.50 per diluted share — up from $10.1 billion, or $7.87 per diluted share, in the previous fiscal year. Investors should be prepared for a challenging 2023, as banks wrestle with higher interest rates and an economy in flux.

This TSX stock last had an attractive P/E ratio of 8.4. Scotiabank also offers a quarterly dividend of $1.03 per share. That represents a tasty 6% yield.

One more TSX stock I’d look to snatch up today

TMX Group (TSX: X) is the third and final cheap TSX stock I’d look to snatch up this week. This Toronto-based company operates exchanges, markets, and clearinghouses primarily for capital markets in Canada and the United States. Its shares have climbed 8.1% in 2022 as of early afternoon trading on December 8.

In the third quarter of 2022, TMX Group delivered revenue growth of 16% to $269 million. Meanwhile, adjusted diluted earnings per share jumped 7% to $1.68. This TSX stock possesses a favourable P/E ratio of 14. It last paid out a quarterly dividend of $0.83 per share, representing a 2.4% yield.