The S&P/TSX Composite Index rose 39 points on Wednesday, August 30. Some of the top-performing sectors included health care, information technology, and battery metals. Millennial investors should be on the hunt for discounted equities that offer a nice balance of growth potential and steady income. Today, I want to zero in on four dirt-cheap stocks that you should look to snatch up before the summer of 2023 comes to an end.
Why I’m excited about the future of this dirt-cheap stock
StorageVault (TSX:SVI) is the first dirt-cheap stock I’d target for millennial investors in the final day of August. This Ontario-based company is engaged in the ownership, management, and rental of self-storage and portable storage space in Canada. Millennials should be excited about getting exposure to the self-storage market. Indeed, Absolute Reports recently valued the global self-storage market at US$58.2 billion in 2022. The same report projects that this market will reach $89.9 billion by 2028. That would represent a compound annual growth rate (CAGR) of 7.5% over the forecast period.
Shares of StorageVault have dropped 4.5% month over month as of close on August 30. The stock has now plunged 22% so far in 2023. In the second quarter (Q2) of fiscal 2023, this company reported total revenue of $71.3 million — up from $66.0 million in the previous year. Meanwhile, adjusted funds from operations (AFFO) jumped 1.6% to $22.1 million.
Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. StorageVault spent most of August in technically oversold territory. It is not too late to buy the dip in this exciting growth stock.
Millennials should target Sun Life as a long-term hold
Sun Life Financial (TSX:SLF) is a Toronto-based financial services and insurance company that operates in North America and around the world. Its shares have dipped 5.6% over the past month. Meanwhile, the dirt-cheap stock is still up 3.1% so far in 2023.
This company released its Q2 fiscal 2023 earnings on August 8. Sun Life reported net income of $660 million in Q2 2023 — down 29% compared to the prior year. However, health and protection sales delivered strong growth. Moreover, it continued to build on its presence in Asia.
Millennials should be attracted to Sun Life’s favourable price-to-earnings (P/E) ratio of 13. It dipped into oversold levels last week. Moreover, Sun Life offers a quarterly dividend of $0.75 per share. That represents a solid 4.5% yield.
You will rest easy with this dirt-cheap stock in your corner
Millennials who want some exposure to a Canadian retailer should look to Sleep Country Canada (TSX:ZZZ). This Toronto-based company is engaged in retailing mattress and bedding-related products in Canada. Its shares have climbed 4.6% so far in 2023. However, the dirt-cheap stock is still down 9.5% year over year.
In Q2 of fiscal 2023, Sleep Country delivered revenue growth of 18% to $35.4 million. Adjusted net income increased 42% year over year to $25.7 million. Meanwhile, adjusted diluted earnings per share (EPS) surged 43% to $0.69.
Millennial investors should be attracted to its P/E ratio of 9.1. Better yet, Sleep Country offers a quarterly distribution of $0.237 per share, which represents a 3.9% yield.
One more stock with huge potential I’d suggest for millennials in 2023
Lithium Americas (TSX:LAC) is the fourth and final dirt-cheap stock I’d suggest millennials look to snatch up today. The rise of electric vehicle (EV) sales in North America and across the developed world means that lithium-ion batteries are seeing a massive spike in demand. That should pique interest in lithium producers around the world.
This Vancouver-based resource company operates in the United States and Argentina. In June 2023, its Cauchari-Olaroz site achieved its first official lithium production. This exciting milestone is huge for Lithium Americas and for its shareholders. Indeed, this dirt-cheap stock has enormous growth potential going forward.
Shares of Lithium Americas have plunged 33% over the past year. Millennials still have time to snatch up shares of this stock at a discount in 2023.
