2 Terrific Canadian Stocks That Still Look Way Too Cheap!

Boyd Group Services (TSX:BYD) and another top value play have growth left in the tank going into 2024.

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Don’t let the November rally stop you from scooping up a bargain as we head into the holidays. Indeed, Santa may have come early this year and may not be ready to reward investors come late December.

Still, the risk/reward scenario across a wide range of beaten-down stocks still seems incredibly good in the grander scheme of things. In five 10 years, you won’t be paying as much attention to near-term, seasonal catalysts. Instead, you’ll be thankful you bought stocks while they were reasonably priced, regardless of what the talking heads on TV were telling herds to do!

Still plenty of value out there for Canadian investors

In this piece, we’ll have a glimpse at two stocks that look like terrific value options in a market that will probably have more twists and turns for investors over the coming quarters.

Recession, inflation, deflation, and disinflation: we’re sure to see a lot of action in 2024. And though stocks could keep marching higher after what’s been a multi-year period of stagnation, investors should strive to stand by value options that can do well, not just next year but all the way through 2030.

Without further ado, consider the following Canadian stocks if you’re in the market for a bargain after last week’s Black Friday blowout.

TFI International

TFI International (TSX:TFII) is a transport firm that’s up a whopping 260% over the past five years. The relatively small $13.7 billion company has been executing effectively under management and may still have many big up days to come as the economic turbulence begins to settle. Going into 2024, TFI may have room to truck higher as consumer activity picks up again, all while the firm looks to continue to improve upon its margins in the U.S. LTL (less-than-load) scene.

Undoubtedly, the firm is also a generous dividend grower that could keep rewarding investors for their patience through the rough patches in the road. At writing, shares boast a modest 1.2% dividend yield. At 19.3 times trailing price to earnings (P/E), I view TFI as a solid value play that could really pick up speed over the long haul (forgive the pun)!

Boyd Group

Boyd Group Services (TSX:BYD) is the auto-body repair firm that recently rocketed to a new high of $261 per share. Indeed, the recovery from last year’s lows came fast, and it came furious, with shares more than doubling (104%) since its 2022 trough. Indeed, the easy money may have already been made. But I think there’s still room to the upside, as the stock continues winning over the price target upgrades from big analysts on Bay Street.

Demand remains quite robust, all while the firm continues jolting its margins. Over the next few years, I’d look for Boyd to take advantage of acquisition opportunities in a collision repair market that’s still quite fragmented. All considered, Boyd’s a growth gem of a company that I’d not sleep on in 2024 and beyond.

Boyd stands out as one of the few industry consolidators that could drive value and growth via smart deal making.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Boyd Group Services. The Motley Fool has a disclosure policy.

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