Canadian markets encountered significant turbulence since the middle of April 2023. However, there has been some positive momentum in the second half of June. Today, I want to look at three TSX stocks that look dirt cheap as we prepare to move into the month of July. These equities are poised for a rebound in the months ahead. Let’s jump in.
Here’s a dirt-cheap TSX stock I’m super bullish on for the long haul
Park Lawn (TSX: PLC) is a Toronto-based company that owns and operates cemeteries, crematoriums, and funeral homes in Canada and the United States. Shares of this TSX stock have dropped 3.3% month over month as of close on June 29. The stock has plunged 10% so far in 2023.
ResearchAndMarkets recently valued the global deathcare services market at US$118 billion in 2022. The report projected that this market would deliver a compound annual growth rate (CAGR) of 5.9%, reaching US$189 billion by 2030. In the first quarter of fiscal 2023, Park Lawn delivered revenue growth of 4.3% to $86.7 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Park Lawn reported adjusted EBITDA of $20.5 million in the first quarter of 2023 — down from $21.4 million in the prior year.
Shares of this dirt-cheap TSX stock last had a price-to-earnings (P/E) ratio of 29. That puts Park Lawn in favourable value territory compared to its industry peers. Moreover, it offers a quarterly dividend of $0.114 per share. That represents a modest 1.9% yield.
Don’t sleep on this TSX stock in the financial space
Manulife Financial (TSX: MFC) is a Toronto-based company that provides financial products and services in North America, Asia, and around the world. Its shares have dropped 1.6% month over month as of close on June 29. The stock is still up 1.5% in the year-to-date period.
This company released its first-quarter fiscal 2023 earnings on May 10. Core earnings climbed 6% on a constant exchange rate basis to $1.5 billion. Moreover, core earnings per share (EPS) increased 11% year over year to $0.79. Looking ahead, the company is on track to deliver very strong revenue and earnings growth in the quarters ahead.
Manulife currently possesses a very attractive P/E ratio of 8.5. This TSX stock last paid out a quarterly dividend of $0.365 per share, which represents a very strong 5.9% yield.
This dirt-cheap tech stock has huge growth potential
Nuvei (TSX: NVEI) is a Montreal-based company that provides payment technology solutions to merchants and partners in North America, Europe, the Middle East, and around the world. Shares of this tech TSX stock have dropped 10% month over month as of close on June 29. The stock is still up 9.1% so far in 2023.
Canadian investors should be excited about the future of this industry. Grand View Research recently valued the global payment processing solutions market at US$47.6 billion in 2022. The same report forecasts that this market will deliver a CAGR of 14% from 2023 through to 2030. In the first quarter of 2023, Nuvei posted revenue growth of 20% to $256 million. Meanwhile, adjusted EBITDA rose to $96.3 million compared to $91.6 million in the first quarter of fiscal 2022.
This tech stock is on track for strong earnings growth going forward. Nuvei holds some risk as its profit margins have experienced a dip and its balance sheet has been shaky. However, this TSX stock still boasts high growth potential at the time of this writing.
