4 Top Value Stocks to Buy in February 2023

Not only are all these value stocks worth considering, each is growing significantly on the TSX today!

| More on:

Image source: Getty Images

The TSX today continues to offer up opportunities, especially ahead of a recession. Many stocks do indeed look enticing. There are so many companies out there that remain well below fair value. Plus, these value stocks tend to offer up dividends! That’s why today I’m going to focus in on the four best value stocks I would seek out for long-term growth on the TSX today, while also receiving passive income.

Nutrien stock

Nutrien (TSX:NTR) is a strong choice on the TSX today as one of the value stocks that soared up, then came down. This gave it the attention it deserved for years. Yet, many decided to drop the stock after it rose to all-time highs last year.

Now, Nutrien stock trades at just 5.9 times earnings with a dividend yield at 2.39% as of writing. Shares are still up in the last year, though there was a dip back in January. So if you’re a long-term holder looking to get in on the valuable crop nutrient industry, I would say now is the time.

Meanwhile, shares are still up 88% since Nutrien stock came on the market. NTR is one of the value stocks now offering a high compound annual growth rate (CAGR), 13.3%!

CP Rail

Now on the surface, Canadian Pacific Railway (TSX:CP) doesn’t look like much of a deal. It certainly doesn’t look like one of the value stocks to consider while trading at 32.8 times earnings. However, long-term investors should see this for the deal it is on the TSX today.

After the acquisition of Kansas City Southern, CP stock is “ready to unite a continent” in 2023. Its fourth quarter results came in strong once more, despite the poor weather performance during the last quarter. The transnational railway has proven that it continues to create opportunities, with even more in the future thanks to the KCS deal.

Shares of the stock are up 15% in the last year alone, and 392% in the last decade. That offers investors a CAGR of 17.3%! And honestly, that growth may continue given the resulting revenue expected in the near future.

Teck stock

But let’s get back to the true value stocks out there right now. This would include Teck Resources (TSX:TECK.B). The coal and mineral miner is in a strong position after gaining US$500 billion after selling part of its business. This has created a strong balance sheet that investors are keen to be a part of.

Teck stock now trades at 6.8 times earnings and 1.1 times book value. What’s more, it’s certainly considered a growth stock. Shares of the basic materials company have exploded by 50% in the last year alone!

Yet long-term growth is there as well. Teck stock is up 90% in the last decade, a CAGR of 6.7%. Not the highest, but certainly stable. And definitely one stock to consider given the growth we’ve seen during this downturn.

Slate Grocery REIT

Finally, how about a real estate investment trust (REIT) to lock in some strong dividend income in the near future? That’s what you get with Slate Grocery REIT (TSX:SGR.UN). Slate stock offers up a dividend yield at 7.46%, while still being one of the value stocks out there trading at only 5.9 times earnings.

Yet the REIT’s value should continue to grow, as the company has a strong foundation given its grocery-anchored chains in the United States. The property holder continues to make acquisitions to expand its business, while also seeing steady income.

Shares have done well, up 15% in the last year alone. In the last decade, those shares are also up by 157%, for a CAGR of 11.3%.

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 Amy Legate-Wolfe has positions in Canadian Pacific Railway. The Motley Fool recommends Canadian Pacific Railway and Nutrien. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

stock market
Stocks for Beginners

A Bull Market Is Eventually Coming: 1 Stock to Buy Now and Hold Forever

Investors may be uncomfortable in market downturns, but try to stay the course and focus on the long term to…

Read more »

Dividend Stocks

5 Steps to Making $500 in Monthly Passive Income in 2023

Generating monthly passive income isn't as hard as it sounds. Here are 5 steps to start making $500 every month.

Read more »

Various Canadian dollars in gray pants pocket
Stocks for Beginners

3 Passive-Income Ideas to Build Long-Term Wealth

Set up to earn multiple passive-income streams to complement your active income. Dividend stocks are an excellent way to start.

Read more »

woman data analyze
Stocks for Beginners

Got $1,000? 3 Places to Invest for March 2023

New investors should regularly save and invest according to their risk tolerance and financial goals. Here are three places to…

Read more »

Young adult woman walking up the stairs with sun sport background
Stocks for Beginners

Debt-Riddled Canadians: 4 Steps to Manage Your Finances and Grow Your Portfolio

There are so many Canadians drowning in debt. Follow these steps, and you could get out of it before you…

Read more »

Man holding magnifying glass over a document
Stocks for Beginners

TFSA Investors: Make Your Recession Watchlist Now!

These long-term stocks offer immense value for TFSA investors looking to create immense returns coming out of a recession.

Read more »

tsx today
Stocks for Beginners

TSX Today: What to Watch for in Stocks on Thursday, March 23

TSX stocks may remain volatile, as investors continue to assess how the high interest rate environment could affect the economy…

Read more »

A plant grows from coins.
Dividend Stocks

2 Young TSX Stocks You’ll Be Glad You Bought in 10 Years

Youth means nothing when you plan to hold strong companies long term. These two TSX stocks should therefore be first…

Read more »