The S&P/TSX Composite Index dropped 222 points on Wednesday, December 28. Some of the worst-performing sectors included health care, energy, telecom, and information technology. Today, I want to focus on five promising stocks that are very undervalued after hitting 52-week lows. Let’s see how we can spend $5,000 today!
This green energy dividend beast is deeply discounted right now
Brookfield Renewable Partners (TSX: BEP.UN) is a New York-based limited partnership that owns a portfolio of renewable power-generating facilities primarily in North America, Columbia, Brazil, Europe, India, and China. Shares of this green energy dividend stock have plunged 24% in 2022 as of close on December 28. The stock recently dipped to a 52-week low of $33.79.
Investors should be eager to snatch up shares of this promising stock that offers exposure to the burgeoning renewable energy space. Brookfield delivered funds from operations (FFO) of $780 million, or $1.21 per share — up from $720 million, or $1.12 per share, for the first nine months of fiscal 2021.
The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. This stock last had an RSI of 24, which puts Brookfield in technically oversold territory. Better yet, it offers a quarterly dividend of $0.32 per share. That represents a strong 5.1% yield.
Don’t sleep on this dirt-cheap telecom in late December
Telus (TSX: T) is a Vancouver-based company that provides a range of telecommunications and information technology products and services in Canada. Its shares have dropped 12% so far in 2022.
In the third quarter (Q3) of 2022, the company posted operating revenues growth of 9.3% to $4.64 billion. Meanwhile, adjusted net income jumped 20% to $471 million, or 17% on a per-share basis, to $0.34. This promising stock possesses a favourable price-to-earnings (P/E) ratio of 18. Moreover, it offers a quarterly dividend of $0.351 per share, representing a 5.3% yield.
Here’s an undervalued bank stock to snatch up for $1,000 today
Canadian Imperial Bank of Commerce (TSX: CM) is the third promising stock I’d look to snatch up today. CIBC is the fifth largest of the Big Six Canadian bank stocks, but it is still a powerhouse in the financial space. Shares of this bank stock have plunged 28% so far this year.
This bank unveiled its final batch of 2022 earnings on December 1. Total revenues rose 6% year over year to $5.38 billion while adjusted net income declined 17% to $1.30 billion, or $1.39 per share. Shares of this promising stock possess a very attractive P/E ratio of eight. Meanwhile, CIBC offers a quarterly dividend of $0.85 per share, which represents a tasty 6.3% yield.
I’m not counting out Cineplex stock this decade
Cineplex (TSX: CGX) is a Toronto-based entertainment and media company that boasts a monopoly in the movie theatre space in Canada. Its shares have plummeted 43% in 2022.
The company released its Q3 fiscal 2022 earnings on November 10. It delivered total revenue growth of 35% to $339 million. Meanwhile, theatre attendance surged 193% to 11 million. This promising stock last hit a 52-week low of $7.45. Cineplex last had an RSI of 18, putting it well in technically oversold territory.
One more promising stock I’d consider snatching up before the new year
Lightspeed Commerce (TSX: LSPD) is the fifth and final undervalued stock I’d look to snatch up in late December. Its shares have dropped 65% in the year-to-date period. This promising stock hit a 52-week low of $17.35.
In Q2 fiscal 2023, this company achieved revenue growth of 38% to $183 million. Meanwhile, it posted diluted net earnings of $79.9 million, or $0.53 per share — up from $59.1 million, or $0.43 per share, in the previous year. This promising stock last had an RSI of 28, which puts Lightspeed in technically oversold territory.
