There are many TSX stocks that remain down on the TSX today, with some down to 52-week lows. However, in the case of the two TSX stocks I’m going to discuss today, they may be down for now, but they offer huge long-term value.
So, let’s look at why investors might want to consider TSX stocks Nutrien (TSX:NTR) and Teck Resources (TSX:TECK.B) on the TSX today.
Nutrien stock
Nutrien stock is a solid choice for those seeking long-term growth from essential products. It’s one of the companies providing crop nutrients on the TSX today, yet past volatility has proven to keep the stock down, despite not deserving the treatment.
Nutrien stock remained strong throughout the pandemic, providing crop nutrients to farmers that needed it, despite restrictions, flood, droughts and more. Its e-commerce arm flourished, and it soon started climbing in share price.
This surged when the company became affected by sanctions against Russian potash. Shares climbed to over $140 per share before falling as the market turned downward. Shares are now still in the double-digit range yet trading at an incredibly valuable 5.08 times earnings as of writing.
Nutrien stock is therefore a solid long-term hold for investors. Sure, shares are down about 30% in the last year, but they’re still up 39% since coming on the market. You can also bring in a solid dividend yield at 2.98% as of writing. We’ll always need to eat, which is why Nutrien stock will remain a solid buy in the near and distant future.
Teck stock
Another company that remains valuable, despite recent growth, is Teck stock. It’s a TSX stock that has done well as investors move away from growth stocks and to more stable options. This includes Teck stock, as it provides basic materials.
This includes everything from silver and copper to coal and fertilizer. This diverse range of investments provides the company with solid cash flow. And in the case of Teck stock, there could be some news very soon that sends share soaring.
The miner stated that there is a hostile takeover offer by Swiss company Glencore, which management will review. A first offer was rejected on April 3, with a new one coming down April 11. This new offer included US$8.2 billion in cash in addition to the original proposal.
However, Teck stock doesn’t look likely to accept the offer and plans to split up its metal and coal businesses into two companies. This would provide more choice for investors and maximize value — something it fears it wouldn’t receive from the Glencore offer.
Yet any publicity is good publicity, with shares of Teck stock up 15% in the last year and year to date. It still trades at 7.64 times earnings as of writing, with a 1.69% dividend yield to consider as well.
Bottom line
Teck stock and Nutrien stock are two TSX stocks that look superbly valuable on the TSX today. The pair offer long-term growth from their investment into basic materials. And when it comes down to it, the best investments are those that will remain essential, no matter where the market goes.
