Canadian investors shouldn’t wait for markets to pull back before punching a ticket to their favourite value plays. Undoubtedly, it’s been a decent year for stocks, with the broader Nasdaq 100 leading the charge, just a year after taking the most punishment. Though your average stock isn’t as cheap as it was a few quarters ago, there are still plenty of contrarian opportunities to give a second look as the market rally heads into its later innings.
In this piece, we’ll look at two intriguing TSX stocks that still offer plenty of value for your investment dollar. Even if the Bank of Canada and the U.S. Federal Reserve aren’t yet done with interest rate increases, the following names seem deeply discounted in a market that may be neglecting stocks that don’t have a front-row seat to the artificial intelligence (AI) boom.
Without further ado, let’s have a closer look at the following cheap plays to see which may be a better fit for your Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) retirement fund.
Brookfield Corp.
First, we have Brookfield Corp. (TSX:BN), an alternative asset manager with some of the most respected management teams out there. Though the company differs slightly from the original Brookfield Asset Management, the long-term thesis remains the same. Over time, I expect demand for resilient and reliable cash-producing alternative assets will keep marching higher from here. Undoubtedly, Brookfield may be viewed as the gold standard when it comes to such alternative assets.
In any case, the stock’s in the midst of a slump, with shares down just north of 24% from its 2021 all-time high near $60 per share. At these depths, I think you’re getting plenty of value for your investment dollar. Like most other asset managers, Brookfield has felt some of the macro headwinds. In due time, I’d look to Brookfield to pick up traction again and return to its market-beating ways.
You can’t keep a wonderful business down for too long a duration. Bumpy recession or not, the risk/reward looks just too good at $46 and change.
Cineplex
It’s been a long time coming, but Cineplex (TSX:CGX) is finally starting to fill its seats with bums. Barbenheimer weekend could give the numbers a huge jolt, with Barbie and Oppenheimer clocking in an incredible $155 million and $80.5 million, respectively, during the big opening weekend. Indeed, it’s been a while since we’ve felt such an itch to go to the movies for some sort of double feature.
As the summer season continues, I think Cineplex will be ready to see its box office benefit greatly from more films that have blockbuster potential. Sure, the Hollywood strike will eventually lead to a hangover. But let’s not ignore the power of these summertime hit films.
They can move the needle, and I think $9 per share severely discounts the strength of the summer movie slate. If the Hollywood strike ends soon, look for CGX stock to find the means to return to the double digits.
In any case, the $573 million cinema play seems like a deep value play fit for any patient investor’s long-term portfolio.
