2 Bounce-Back Plays for Young TFSA Investors

Cineplex (TSX:CGX) and Corus Entertainment (TSX:CJR.B) are deeply discounted stocks to entertain your TFSA.

| More on:
edit U-turn

Image source: Getty Images

Tax-Free Savings Account (TFSA) investors should be cautious when going on the hunt for bounce-back plays. Many of the fallen hyper-growth stocks of 2022 will likely take many years to climb out of the holes they fell in. Still, if you’re a young, brave investor who knows what they stand to gain (and risk) with potential deep-value stocks, I’d not hesitate to nibble away at the many battered plays in this market.

Bounce-back candidates to entertain your TFSA?

In this piece, we’ll have a closer look at two firms that could be in for considerable relief once macro headwinds finally have a chance to blow over. Undoubtedly, the following names are dangerously volatile, making a dollar-cost averaging approach (DCA) a safe method to inching into a name without feeling the full force of the steep pullbacks each name is capable of.

Without further ado, let’s consider Cineplex (TSX:CGX) and Corus Entertainment (TSX:CJR.B).

Cineplex stock: Down 29% over the past year

Cineplex is a cinema giant that’s been in a horrid bear market for more than six years now. The glory days of Cineplex saw shareholders get the perfect mix of income and growth.

Indeed, the rise of streaming led to the demise of CGX stock. The pandemic seemed to be the nail in the coffin. Still, Cineplex is still standing, thanks to the many moviegoers who continue to enjoy the viewing experience of the silver screen. Indeed, it’s tough to match the experience of going to a movie.

With COVID-19 still out there, a rich library of content conveniently available via streamers, and the pinch of macro headwinds, the case for streaming over going to the movie continues to be quite weak. Sure, Cineplex’s Cinepass and Scene+ program have made movie-going a less wallet-hurting night out. Still, CGX stock can’t seem to catch a break — now at $8 and change per share.

More recently, Cineplex inked a distribution deal with Lionsgate. The deal could help tilt the odds back in Cineplex’s favour, as the content slate looks to improve through the year.

Corus Entertainment: Down 55% in the past year

For those seeking deeper value, Corus Entertainment looks intriguing. Like Cineplex, the stock has been stuck in a rut for many years. And with few catalysts to help it fly higher, the stock continues to be a really difficult name for most investors to hold.

At 3.17 times trailing price-to-earnings, the stock seems like a steal. But headwinds continue to mount for the firm that found itself on the wrong side of a secular trend away from cable TV. Ad revenues have already weighed amid the macro slowdown.

Indeed, TV ads could recover on the other side of the recession. In the meantime, Corus stock seems much hated. For true contrarians, though, CJR.B may be a worthy pick-up at these depths while the stock is trading at $2 and change.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Cineplex. The Motley Fool has a disclosure policy.

More on Investing

Piggy bank next to a financial report

TFSA: 2 Canadian Dividend Stocks for Your $6,500 Room Contribution

Alimentation Couche-Tard (TSX:ATD) and Scotiabank (TSX:BNS) are great value picks for new TFSA investors looking to put money to work.

Read more »

value for money

3 Remarkably Cheap TSX Stocks to Buy Right Now

Looking for some quality bargains on the TSX today? Check out these three stocks for value, growth, and income.

Read more »

money cash dividends

Passive Income: How to Make $600 Per Month Tax Free

Canadians on the hunt for passive income in a choppy market can look to generate $600/month with True North Commercial…

Read more »

Dividend Stocks

Better Buy for TFSA Passive Income: Telus Stock or TD Bank?

Telus stock and TD stock look cheap today. Is one really oversold?

Read more »

funds, money, nest egg
Dividend Stocks

Income Stocks: A Once-in-a-Decade Chance to Get Rich

As a part of your diversified investment portfolio, solid dividend stocks on sale can help you get rich with growing…

Read more »

Hourglass projecting a dollar sign as shadow
Dividend Stocks

2 Superb TSX Stocks to Buy for Passive Income

All dividend stocks can help you start a passive-income stream, but relatively few offer a healthy combination of yield and…

Read more »

A golden egg in a nest
Dividend Stocks

TFSA Investors: 2 Growth Stocks to Build an Adequate Nest Egg

Two TSX growth stocks are ideal holdings for TFSA investors building a nest egg or retirement wealth.

Read more »

financial freedom sign
Dividend Stocks

How to Easily Make $1 Million in 20 Years

There's trying to time the market, and then there's the easy way of investing if you want to make $1…

Read more »