We’re nearing the end of June, but as we traverse into the second half of 2024, investors may be looking at repositioning their portfolios for the rest of the year. For many, increasing focus is being paid to value stocks relative to hyper-growth or more speculative bets. Given where valuations are, I think such an approach is prudent.
For those looking at the TSX, there do happen to be a number of excellent opportunities in this regard. Here are three value stocks I think are worth buying before the calendar flips over to July.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX:ATD) remains among the top value stocks in the market I continue to pound the table on. With a price-earnings multiple around 18 times, and given the company’s long-term trajectory of growth, this is a stock that could be favourably valued. That’s in part due to the fact the market is currently pricing in negative year-over-year growth for 2025.
I don’t think that’s likely to be the case. Couche-Tard’s network of convenience stores, gas stations, and cash wash facilities in North America, Europe, and the Asia-Pacific region is among the best of its peers. This is a company that’s shown the ability to continually consolidate a fragmented industry, improving the return on invested capital of its acquired locations, while also seeing organic growth.
Assuming this continues over time, the company’s multiple may prove to be overly modest right now. While revenue only grew 1.6% year-over-year in the company’s fiscal third quarter, a number of factors could drive a reacceleration of growth. As we continue into summer driving season, I wouldn’t be surprised to see a positive earnings report coming up this next quarter.
Manulife Financial
Manulife Financial (TSX:MFC) is one of the three largest insurance companies in Canada. The company offers life insurance and wealth management products and services to individual and group customers in Canada, the United States and Asia, serving more than 35 million customers worldwide.
On May 8, Manulife reported its first quarter financial results ended. In this report, the company highlighted new assets under management of $669 million, a rise of 34% year-over-year. Its annualized premium equivalent increased by 21% year-over-year to $1.9 billion. In addition, the company’s Global Wealth and Asset Management business generated net inflows of $6.7 billion, an increase of 55% year-over-year.
Unsurprisingly, Manulife has been among the top winners in the TSX this year, and remains among my top recommendations for investors seeking value stocks right now. With a price-earnings multiple of only 15 times, it’s hard to find that kind of value in this current market, given the company’s recent growth. As Manulife continues to expand into high-growth markets in Asia, I think this growth has plenty of room to continue to increase.
