The S&P/TSX Composite Index was down 50 points in early afternoon trading on Tuesday, May 9. Some of the top-performing sectors included battery metals, telecom, and information technology. Today, I want to scour the TSX for some hidden gems that investors may have missed out on in the beginning of the spring. These TSX stocks offer value and a shot at super long-term growth. Let’s jump in.
This undervalued TSX stock has nice growth potential for the long term
Altus Group (TSX: AIF) is a Toronto-based company that provides asset and funds intelligence solutions for commercial real estate (CRE). It operates through three main segments: Analytics, Property Tax, and Appraisals, and Development Advisory. Shares of this TSX stock have plunged 26% month over month at the time of this writing. That has pushed the stock down 24% in the year-to-date period.
This company unveiled its first-quarter (Q1) fiscal 2023 earnings on May 4. Altus Group reported consolidated revenues of $190 million — up 13% compared to Q1 fiscal 2022. Meanwhile, adjusted earnings per share (EPS) rose to $0.33 compared to $0.27 in the prior year. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Altus Group posted consolidated adjusted EBITDA growth of 49% to $26.5 million in Q1 FY2023.
Shares of this TSX stock are trading in favourable value territory compared to its industry peers. Altus Group last announced a quarterly dividend of $0.15 per share. That represents a modest 1.4% yield.
Don’t sleep on this dividend stock that can deliver strong growth going forward
Badger Infrastructure (TSX: BDGI) is another TSX stock I’d consider a hidden gem in early May 2023. This Calgary-based company provides non-destructive excavating and related services in Canada and the United States. Shares of this TSX stock have dropped 6.8% month over month. The stock is still up 5.6% so far in 2023.
Investors got to see Badger’s Q1 fiscal 2023 earnings on May 3. The company posted total revenue of $143 million in Q1 FY2023 — up from $114 million in Q1 fiscal 2022. Meanwhile, adjusted EBITDA rose to $23.9 million compared to $10.6 million in the prior year. Badger posted net earnings of $3.67 million, or $0.08 per share, compared to a net loss of $6.70 million, or $0.15 per share, in Q1 2022.
This TSX stock last had a solid price-to-earnings ratio of 27. Meanwhile, Badger offers a quarterly dividend of $0.172 per share, which represents a 2.4% yield.
One more cheap TSX stock I’d snag in early May 2023
Bausch Health (TSX: BHC) is the third and final TSX stock that is flying under the radar in the spring of 2023. This Laval-based company develops, manufactures, and markets a range of pharmaceutical, medical device, and over-the-counter (OTC) products primarily in therapeutics areas of eye health, gastroenterology, and dermatology. Shares of this TSX stock have dropped 21% over the past month. The stock is still down 8% so far in 2023.
In Q1 2023, Bausch Health posted revenue growth of 1% to $1.94 billion. Moreover, its Xifaxan core product contributed 7% reported growth. The company continued to post strong progress for its mid- to late product pipeline.
Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. This TSX stock currently possesses an RSI of 28. That puts Bausch Health in technically oversold territory at the time of this writing.
