The S&P/TSX Composite Index increased 31 points on Friday, February 24. Some of the worst-performing sectors included battery metals, base metals, information technology, and health care. Meanwhile, energy and financials, the largest weighted sectors on the TSX, finished the day in the black. Today, I want to zero in on four cheap stocks that I’d look to snatch up before this bull market kicks into high gear. Let’s dive in.
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This cheap stock offers exposure to the insurance industry
Trisura Group (TSX: TSU) is a Toronto-based specialty insurance company that operates in the surety, risk solutions, corporate insurance, and reinsurance businesses in Canada, the United States, and around the world. Shares of this cheap stock have dropped marginally in the year-over-year period. Meanwhile, the stock has plunged 25% so far in 2023.
This company rescheduled its fourth quarter (Q4) and full-year fiscal 2022 earnings release earlier this month. We still do not know when the company plans to unveil its results. In Q3 2022, Trisura posted earnings per share (EPS) of $0.51 compared to $0.38 in the previous year. Meanwhile, net income increased 47% to $23.7 million. Adjusted diluted EPS jumped 9.8% to $0.45.
Shares of this stock possess a favourable price-to-earnings (P/E) ratio of 19. The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. Trisura possesses an RSI of 20, putting it well in technically oversold territory.
Here’s a bank stock to target after its Q1 earnings release
Canadian Imperial Bank of Commerce (TSX: CM) is the fifth largest of the Big Six Canadian bank stocks. That said, CIBC is still a Canadian powerhouse that you can rely on for the long term. This bank stock has declined 21% in the year-over-year period as of close on February 24. Its shares have climbed 13% in the new year.
The bank released its Q1 fiscal 2023 earnings last Friday, February 24. It achieved total revenue growth of 8% year over year to $5.93 billion. Meanwhile, adjusted earnings per share blew passed expectations at $1.94. Moreover, adjusted pre-tax earnings increased 6% to $2.66 billion.
CIBC last had an attractive P/E ratio of 9.4. Better yet, it offers a quarterly dividend of $0.85 per share. That represents a strong 5.4% yield.
Magna is a cheap stock set to gain as vehicle production ramps up this decade
Magna International (TSX: MG) is an Aurora-based company that designs, engineers, manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks around the world. Its shares have dropped 22% from the prior year. Meanwhile, this cheap stock has declined 6.8% so far in 2023. Investors can see more with the interactive price chart below.
It posted its final batch of earnings in fiscal 2022. Magna achieved total sales of $37.8 billion — up from $36.2 billion in the previous year. Looking to 2023, the company is forecasting strong sales growth on the back of improved global light vehicle production.
Shares of Magna last had a P/E ratio of 26, putting it in favourable value territory compared to its industry peers. It last had an RSI of 34, putting it just outside of oversold levels.
One more undervalued and exciting stock I’d buy as the market improves
goeasy (TSX: GSY) is the fourth and final cheap stock I’d look to snag. This Mississauga-based company provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada. Shares of goeasy have climbed 17% in the year-to-date period.
The company released its Q4 and full-year fiscal 2022 earnings on February 15. Its loan portfolio delivered growth of 38% to $2.79 billion. Meanwhile, adjusted annual diluted earnings per share climbed 11% to $10.43. This top TSX stock still possesses an attractive P/E ratio of 14. Moreover, goeasy is a Dividend Aristocrat that offers a quarterly distribution of $0.96 per share, which represents a 3% yield.
