TFSA (Tax-Free Savings Account) investors shouldn’t seek to time this absurdly volatile market. Instead, they should swing at the bargains that fall within their strike zone as they come. Indeed, buying the dip is easier said than done in this choppy market that’s fluctuated wildly over the past few years.
From extreme fear back in the COVID lockdown days to euphoria during the tech-focused run-up in 2021, it’s been a wild swing of emotions in both directions. Eventually, tech crumbled like a paper bag for 2022, only to recover a great deal in 2023. It’s a mystery as to what will be in store for 2024. As it stands today, valuations are more or less in a fair place.
Sure, the biggest and best bargains may have been snatched up in the back half of last year. However, that doesn’t mean there aren’t great value plays to stash in your TFSA right now.
Savvy TFSA stock picks for the long haul
After a hot November bounce from the September-October correction in the S&P 500, TFSA investors may wish to look at some of the less-loved corners of the market. Certain telecom and consumer staple stocks have really been rocked in recent quarters, while tech has begun to creep higher as investors grow optimistic over a potential peak in interest rates.
In this piece, we’ll check out an intriguing telecom play and a consumer staple that still has plenty of growth left in the tank. Both names seem to reek of value and would make for solid additions to a value-oriented TFSA retirement fund.
Jamieson Wellness
Jamieson Wellness (TSX:JWEL) is a vitamin, mineral, and supplements company that you normally wouldn’t think of as an earnings growth superstar. The stock recently ricocheted very sharply off multi-year lows hit in late October. Now up more than 25% from its October lows, JWEL stock may be in a spot to continue its recovery on the back of robust third-quarter (Q3) earnings results.
For Q3, earnings per share came in at $0.35, ahead of the $0.31 consensus estimate. Revenue also came in at $152 million, which wasn’t bad given macro headwinds. Though many firms have lowered their price targets on JWEL stock over the past few weeks, I still think long-term TFSA investors have a lot to gain by being patient with a name whose fundamentals (and growth profile) still seem fully intact.
At writing, the stock trades at 25.7 times trailing price to earnings alongside a 2.67% dividend yield. Only time will tell if the bottom has been put in. Regardless, Jamieson stands out as a firm that may be able to win back the hearts of consumers, as economic conditions begin to normalize.
Quebecor
Quebecor (TSX:QBR.B) may very well be the most interesting telecom stock in North America right now. If you’re not from Quebec, you may not be aware of the firm behind such consumer-facing brands as Vidéotron. Most Canadians likely heard of Quebecor when it scooped up low-cost carrier Freedom Mobile. As the firm looks to up its stake outside of Quebec, I think there’s a lot of room to grow, as it looks to outmuscle the much larger Big Three incumbents.
If Quebecor can stay aggressive with its wireless expansion, the firm may be able to win the hearts of new customers. The main draw to the stock isn’t just the growth runway; it’s the dirt-cheap valuation. The stock goes for 10.89 times trailing price to earnings, with a juicy 3.87% dividend yield. At the intersection of growth and deep value, QBR.B is a standout play for any new TFSA investor looking to build wealth, not just for the next year, but the next decade.
I’m a big fan of management (they’re my personal favourite of all Canadian telecoms) and their ability to put up a fight in what could be a Canadian scene bound to become that much more competitive.
