Many TSX stocks out there today are down in share price. Yet just because TSX stocks are down doesn’t make them cheap or valuable. What investors need are companies that are cheap because they’re due to recover. Today, we’re going to cover three I’d pick up immediately.
NorthWest REIT
I’d certainly consider NorthWest Healthcare Properties REIT (TSX:NWH.UN) one of the cheap TSX stocks for investors to consider. NorthWest REIT has been dropping in share price as investors take out their cash to put towards other safer options during this downturn. This also comes from the company losing out on a joint venture in the United Kingdom.
Add in that rising interest rates have led to missed earnings estimates, and the stock has plummeted by about 54% in the last year alone. Now it offers investors an insanely high dividend yield at 15.75%! Of course, this isn’t everything. There are high dividend stocks out there among TSX stocks that won’t rebound.
However, in the case of NorthWest REIT, this is different. It’s cheap because it offers secure long-term income. This is possible because it has an average lease agreement of 14 years and a 97% occupancy rate as of writing. So, this is certainly cheap for long-term investors.
Brookfield Renewable
Another of the cheap TSX stocks to consider while it’s down is Brookfield Renewable Partners LP (TSX: BEP.UN). BEP stock is a solid investment, but it also has been down after missing earnings. Similarly, rising costs and interest rates are hurting company performance.
Yet, management has taken advantage of this. BEP stock has been regularly buying back shares at these ultra-low prices. Shares are now down by 36% in the last year, offering investors a great opportunity among cheap TSX stocks.
BEP stock also offers a dividend yield of 6.18%, with shares offering the potential to double in the next year. And with renewable energy offering enormous expansion in the next decade, it’s a great time to pick up the stock.
BMO stock
Finally, some of the safest stocks out there are Canadian banks. Yet many are down again these days due the the poor market performance. This includes Bank of Montreal (TSX: BMO), which recently hit 52-week lows.
Yet BMO stock has been around for over 200 years, and isn’t likely to disappear in this small downturn. That means you’re looking at a great chance to buy the stock at a steal, trading at just 11.1 times earnings as of writing. So even though it’s missing earnings now, it won’t forever. In fact, it should eventually come roaring back.
So with shares of BMO stock down 11% in the last year, now is a great time to pick it up among other cheap TSX stocks. Especially those in the banking industry that allow for a quick and stable rebound. BMO stock, in particular, though offers growth as well, after purchasing Bank of the West in the United States. So while it’s hurting now, I don’t believe that’s going to remain the case for much longer.
