3 Stocks You’ll Be Glad You Bought at These Prices

Three relatively cheap stocks are great deals and strong buys on the TSX today.

| More on:
Technology

Image source: Getty Images

Are you looking for great deals on the TSX this month? If you are, three stocks should be worth your while. You’ll also be glad you bought them at their prices today.

Market analysts are optimistic about energy stocks this year, if not bullish. Baytex Energy (TSX:BTE) and Enerflex (TSX:EFX) trade below $10 and have bright business outlooks. Propel Holdings (TSX:PRL) has outperformed the big banks in 2023. The growth stock also stormed out of the gate to start 2024 and could soar higher when interest rate cuts begin.

Oil & gas exploration & production

Baytex Energy develops and produces crude oil and natural gas in the Western Canadian Sedimentary Basin and Eagle Ford in the United States. At $4.14 per share, this future top-tier North American oil producer pays a decent 2.17% dividend. Also, the stock had a 380.21% return in three years.  

Last month, the $3.5 billion company announced a board-approved exploration and development expenditures budget of $1.2 to $1.3 billion for 2024. Baytex could generate an average annual production of 150,000 to 156,000 barrels of oil equivalent per day.

Its president and chief executive officer, Eric T. Greager, said the budget and five-year outlook demonstrates the strength of the diversified oil-weighted portfolio. “Our business is underpinned by strong drilling economics and greater than 10 years inventory across our portfolio, and our commitment to shareholder returns is expected to drive meaningful per-share growth in production and free cash flow,” said Greager.

Oil & gas equipment & services

Enerflex sees strong demand across its business units and geographic regions in which it operates in 2024. The $794.4 million company provides energy infrastructure and energy transition solutions globally. It partners with large and small operators in 23 countries.

This energy stock also pays dividends. At $6.41 per share, the yield is a modest but safe 1.56% (15.32% payout ratio). Enerflex’s focus this year is to generate free cash flow and improve its financial flexibility further. Management said the operating results will be underpinned by highly contracted energy infrastructure product lines and recurring revenues from after-market services.

Moreover, most of the $1.5 billion backlog as of December 31, 2023, should convert into revenues in the next 12 months. Because of robust long-term fundamentals for natural gas, providing meaningful shareholder returns and a sustainable dividend are top priorities.  

Hot fintech

Propel Holdings’s incredible run last year continues, as evidenced by its 15.57% year-to-date gain. Also, at $14.99 per share, the trailing one-year price return is 117.79%. The $514.6 million financial technology company boasts an artificial intelligence-powered online lending platform and caters to underserved consumers or borrowers.

With the strong revenue (+39%) and earnings (+47%) growth in the third quarter of 2023 versus the third quarter of 2022, expect the stock to fly higher. Besides the solid financial position, Propel is confident about its profitable growth prospects and cash flow generation. An added caveat is future dividend growth (yield increased to 4.9% in September).  

Common objectives

Baytex Energy, Enerflex, and Propel have common objectives for shareholders: meaningful returns and generating strong free cash flow. All three are well positioned to reward current and prospective investors.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Propel. The Motley Fool recommends Enerflex. The Motley Fool has a disclosure policy.

More on Dividend Stocks

analyze data
Dividend Stocks

2 Dividend Stocks I’d Buy if They Fall a Bit

Consider buying Brookfield Asset Management (TSX:BAM) and another top stock on a larger pullback.

Read more »

Payday ringed on a calendar
Dividend Stocks

TFSA Investors: 2 of the Best Monthly Dividend TSX Stocks to Buy Right Now

Create a monthly tax-free income stream in your TFSA by investing in these two TSX dividend stocks that pay investors…

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 Top Canadian Dividend Stocks to Buy Under $30

Given their stable cash flows and healthy dividend yields, these three dividend stocks are excellent additions to your portfolio.

Read more »

money cash dividends
Dividend Stocks

Beat the Dow Jones With This Cash-Gushing Dividend Stock

Here's why this high-dividend TSX stock should beat the Dow Jones index in 2024 and beyond.

Read more »

Pixelated acronym REIT made from cubes, mosaic pattern
Dividend Stocks

The Top Canadian REITs to Buy in February 2024

Are you looking to boost your income and buy some stocks at a bargain? Here are three top REITs that…

Read more »

calculate and analyze stock
Dividend Stocks

Better Buy in 2024: Canadian Utilities Stock vs. Enbridge Stock

Dividend stocks like Enbridge (TSX:ENB) and Canadian Utilities (TSX:CSU) are staples of Canadians' portfolios.

Read more »

Increasing yield
Dividend Stocks

2 No-Brainer High-Yield Dividend Stocks to Buy Right Now for Less Than $1,000

Got $1,000? Here are two no-brainer stocks to buy now at their lows and start getting immediate returns of $75.

Read more »

Gas pipelines
Dividend Stocks

Is Keyera a Buy After Its Solid Fourth-Quarter Earnings?

Given Keyera's solid quarterly performance and healthy growth prospects, I am bullish on it.

Read more »