The S&P/TSX Composite Index plunged 314 points on Wednesday, August 2. Some of the worst-performing sectors included information technology, base metals, and battery metals, all of which shed over 2% on the day.
Investors in North America and around the world were spooked by news that the United States’ credit rating had been downgraded from AAA to AA+. Standard & Poor’s last removed the triple-A rating back in 2011 in response to a standoff over the borrowing limit. Despite this retreat, I’m still looking to snatch up undervalued TSX stocks in early August.
Today, I want to zero in on three of my favourites. Let’s jump in.
I’m still bullish on this TSX stock that is geared up for big growth
Jamieson Wellness (TSX: JWEL) is the first TSX stock I’d look to snatch up this month. This Toronto-based company is engaged in the development, manufacture, distribution, marketing, and sale of natural health products that include vitamins, herbal and mineral nutritional supplements in North America and around the world. Shares of this TSX stock have dropped marginally month over month as of close on August 2. The stock has now plunged 14% so far in 2023.
Canadian investors should seek exposure to the natural health products and supplements space. Grand View Research recently valued the global dietary supplements market at US$163 billion in 2022. The same report projects that this market will deliver a compound annual growth rate (CAGR) of 9% from 2023 through to 2030.
This company is set to release its second-quarter (Q2) fiscal 2023 earnings after the market closes today, on August 3. In Q1 2023, Jamieson delivered consolidated revenue growth of 31% to $136 million. Shares of this TSX stock currently possess a favourable price-to-earnings ratio of 25. Meanwhile, Jamieson offers a quarterly dividend of $0.17 per share. That represents a 2.2% yield.
Bet on the growth of automation with this stock in the summer season
ATS (TSX: ATS) is a Cambridge-based company that provides factory automation solutions to a worldwide customer base. Its shares have dipped 5.8% over the past month. However, this TSX stock has still surged 35% in the year-to-date period.
Investors can expect to see this company’s first batch of fiscal 2024 results on August 9. In fiscal 2023, ATS achieved revenue growth of 18% to $2.57 billion. Adjusted basic earnings per share (EPS) climbed 3% to $2.37. ATS is on track for strong earnings growth going forward. I’m excited about ATS and the exposure it grants us in the factory automation space.
One more exciting TSX stock I’d target before we hit August
TFI International (TSX: TFII) is the third and final TSX stock I’d look to snatch up in early August 2023. This Montreal-based company provides transportation and logistics services to clients in Canada, the United States, and Mexico. Shares of TFI International have jumped 15% month over month as of close on August 2. This stock has now climbed 27% so far in 2023.
The company unveiled its Q2 fiscal 2023 earnings on July 31. TFI International posted lower revenues and earnings as it was faced with a “difficult freight market and reduced volumes industrywide,” according to its management. Despite the poor macroeconomic environment, TFI International inspired faith as it delivered solid earnings in the face of these challenges.
Shares of this TSX stock currently possess an attractive price-to-earnings ratio of 15. Meanwhile, TFI International offers a quarterly dividend of $0.35 per share, which represents a modest 1% yield.
