It’s no secret that there are plenty of TSX stocks to buy while they’re still cheap in this current economic and stock market environment, especially when you consider all of the uncertainty we’ve experienced.
However, with inflation now starting to subside, it’s possible that we could see another bull market much more quickly than initially expected.
And while there’s no shortage of uncertainty in the economy these days, and many investors, economists, and analysts are expecting a recession, nothing has materialized just yet.
Furthermore, as the inflation rate continues to fall, investors are anticipating when interest rates could peak, which has also driven the market momentum in recent months.
Therefore, while you can buy high-quality TSX stocks when they’re still cheap, it’s essential to take advantage of this significant opportunity.
And if you’re looking for stocks to consider today, here are three companies that not only trade undervalued but have years of growth potential.
An unbelievably cheap TSX retail stock
One of the best TSX stocks to buy now, not only because it’s cheap but also because it has a plenty of growth potential over the coming years, is Canadian Tire (TSX:CTC.A).
Canadian Tire has been one of the best and most well-known brands in Canada for years, but only recently has its operations been performing this well.
In the last decade, Canadian Tire has made attractive acquisitions that have helped boost its retail operations and allowed the company to drive sales growth by increasing its cross-selling, as well as boosting profitability by scaling its costs.
Furthermore, Canadian Tire has leveraged the power of technology and its ultra-popular loyalty program to get consumers using its app, which is also helping to drive higher traffic in its stores and, ultimately, more growth.
So while the stock is being impacted by the economic environment and trading ultra-cheap, it’s certainly one of the best TSX stocks to buy now.
Currently, Canadian Tire’s forward price-to-earnings ratio is just 11.1 times, below its 10-year average of 12.9 times. Furthermore, its dividend yield is now roughly 3.7%, above its 10-year average of just 2.5%.
So if you’re looking for cheap TSX stocks to buy today, Canadian Tire is certainly a top choice.
A unique growth stock trading undervalued
In addition to Canadian Tire, another high-quality stock to consider is Park Lawn (TSX:PLC). Park Lawn is a death care services company that owns cemeteries, crematoria and funeral homes, with properties diversified all across North America.
Death services is an industry that is considerably defensive and has natural organic growth potential, which is what makes Park Lawn an intriguing stock.
Plus, the company has demonstrated for years that it can continuously make value-accretive acquisitions to consistently expand its portfolio and grow shareholder value.
So with Park Lawn trading at a forward enterprise value-to-EBITDA (earnings before interest, taxes, depreciation and amortization (EV/EBITDA) ratio of just 9.8 times, well below its five-year average of 12.8 times, it’s certainly a cheap TSX you’ll want to consider buying before the next bull market.
A top TSX gold stock to buy while it’s still cheap
Lastly, with interest rates looking like they could peak soon, gold prices could start to see some momentum, and right now, one of the top gold stocks on the TSX, B2Gold (TSX:BTO), is extremely cheap.
B2Gold is a high-quality investment if you’re looking for a gold stock because it’s one of the lowest-cost producers you can buy.
Furthermore, it pays an attractive dividend, has a strong balance sheet with no net debt, and a net cash position of more than $800 million. Plus, it has shown it can make periodic acquisitions to strengthen its business.
Therefore, with B2Gold trading at an EV/EBITDA ratio of 4.5 times, below its 10-year average of 6.4 times, and its stock now offering a yield of 4.25%, it’s certainly one of the top TSX stocks to buy while it’s still this cheap.
