3 Cheap TSX Stocks I’d Buy Before the Market Heats Up

These cheap stocks offer huge returns in the near future, making them the perfect gift to yourself ahead of 2024.

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The TSX today has seen quite the rally at the end of 2023. It seems as though we may finally end a year on a high note. Not since 2019 have we been more positive about the future, and that does seem warranted at this point!

Which is why today I’m focusing on making some great money in 2024. This can be done as the market continues to heat up, especially if you focus on cheap TSX stocks like these.

BMO stock

I would certainly consider one of the Big Six Banks right now as the market heats up. After all, these banks have been around for over a hundred years. And in the case of Bank of Montreal (TSX:BMO) for over 200 years!

That security allows you to invest knowing the bank will rebound quickly and efficiently. It’s done so time and again, coming back to 52-week highs within a year of hitting 52-week lows. What’s more, there is a lot of growth coming for BMO stock after its expansion in the United States through Bank of the West.

Yet BMO stock remains one of the cheap stocks to buy now, trading at 2.8 times sales and with a 4.71% dividend yield. So not only can you see shares climb higher, but add dividends on top of that!

WELL stock

If you’re looking for a more tech-focused company among cheap stocks, I would also consider WELL Health Technologies (TSX:WELL). WELL stock dropped lower and lower as investors avoided any company related to the pandemic or tech. Yet there was really no reason for it.

WELL stock has been breaking records again and again, becoming the biggest outpatient clinic in Canada and expanding in the U.S. through its virtual healthcare business. Yet the company continues to find more ways of pursuing growth, and that’s what investors should remain excited about.

So even though shares are up 45% this year, analysts believe the stock could double from today’s share price. And that still wouldn’t reach all-time highs. So this one I would certainly consider one of the best cheap stocks out there.

Magna

Finally, a company that also suffered during the last few years has been Magna International (TSX:MG). Magna stock fell further and further as pandemic restrictions hit the car manufacturer hard. Yet, it’s been recovering strong, with a focus on bringing costs down and introducing new products.

After several quarters of beating earnings estimates, Magna stock is finally on investor radars again. The company has been focused on expanding in the electric vehicle sector, while also purchasing new assembly warehouses.

Yet it’s still incredibly cheap, and due to hit a three-digit share price once more. For now, it trades at just 16.2 times earnings, offering up a lovely 3.22% dividend yield as well. So it’s yet another of these cheap stocks to consider on the TSX today. And especially interesting with shares rising 20% in the last two months alone.

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 Amy Legate-Wolfe has positions in Well Health Technologies. The Motley Fool recommends Magna International. The Motley Fool has a disclosure policy.

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