Unearthing Incredible Value: 2 Dirt-Cheap Commodity Stocks That Demand Attention Today

Barrick Gold (TSX:ABX) and another great mining stock look like huge value plays right here.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

You don’t really need to dig too deep into the Canadian stock market to unearth deep-value plays right here. Undoubtedly, the TSX Index is having its much-awaited breakout moment. And for Canadians, it’s an exciting time to start thinking about putting new money into some TSX stocks. Indeed, the bank stocks, especially those that recently flirted with multi-year lows, are really starting to show signs of life again, especially in the past few weeks.

Additionally, many commodities plays are starting to pick up the slack for the summer. The big question is whether some of the commodity heavyweights have what it takes to sustain a recovery rally. The value looks to be there, with shares of some well-run miners feeling down over the recent slip in various commodity prices. Indeed, volatility is just a given if you’re going to bet on shares of a top-tier miner.

The good news is that the following firms seem overly punished and perhaps due for a correction to the upside at some point down the line. So, whether or not recent action is the start of a bullish uptrend, the following commodity plays seem like great value options for investors looking to unearth a high-value gem.

Without further ado, let’s check out shares of agricultural commodity — think potash and the like — producer Nutrien (TSX:NTR) and shining gold miner Barrick Gold (TSX:ABX). Apart from being deeply discounted going into late July, each name has very bountiful dividend yields of 4.3% and 2.2%, respectively, at the time of writing.

Nutrien

Nutrien is a fantastic fertilizer producer that’s been in a decline ever since shares nosedived back in the middle of 2022. Indeed, NTR stock is down just over 50% from its peak, essentially wiping out most of the gains enjoyed in the 2021-22 rally. Though industry dynamics aren’t as great, I continue to view Nutrien as one of the most efficient operators in the world.

Additionally, Nutrien may be one of the commodity plays to nibble your way into while it’s in a cyclical funk. Indeed, the tables will eventually turn, but when they do, the price of admission into the name would probably have gone up — way up.

At writing, NTR stock goes for 12.5 times forward price to earnings (P/E), not at all a high price to pay for a commodity king among men. Further, the dividend yield looks well-covered and ripe to grow further despite recent industry challenges.

Created with Highcharts 11.4.3Nutrien PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Barrick Gold

Barrick Gold is a great way to ride the gold wave higher as the battle against inflation winds down. Indeed, the miner recently clocked in higher production for gold and copper. With the firm poised to hit 2024 targets, investors may wish to have a closer look at the name, especially as the rally in gold prices slips a bit.

Shares of ABX are down close to 4% on the back of recent gold weakness. I view the dip as a terrific buying opportunity for investors seeking a dividend-paying, leveraged way to bet on gold and its ability to retain its lustre in the second half of 2024. Even if Barrick takes a hit from here, you’re getting a great dividend and added diversification for your portfolio while you wait.

Created with Highcharts 11.4.3Barrick Gold PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Should you invest $1,000 in Barrick Gold right now?

Before you buy stock in Barrick Gold, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Barrick Gold wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Nutrien. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Investing

Investor wonders if it's safe to buy stocks now
Bank Stocks

Where Will Royal Bank of Canada Be in 2 Years?

Down 12% from all-time highs, RBC stock trades at a sizeable discount to consensus price target estimates in April 2025.

Read more »

protect, safe, trust
Dividend Stocks

How I’d Allocate $1,000 in Defensive Stocks in Today’s Market

These defensive stocks are outperforming the broader market despite economic uncertainty, providing stability, income, and growth.

Read more »

Piggy bank and Canadian coins
Dividend Stocks

Where I’d Invest My Savings in the TSX Today

These two TSX stocks would be my first picks if I were putting more money into the stock market today.

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

How I’d Adjust My Portfolio to Benefit from Canadian Dollar Movements

TSX stocks benefit from Canadian dollar movements, although the loonie will be under pressure in 2025 due to trade uncertainty.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Monday, April 7

With a 6.3% weekly loss, the TSX just posted its steepest percentage decline in a single week since June 2022.

Read more »

Stocks for Beginners

Dip Buyers Could Win Big: The Best Canadian Stocks to Buy Now

These two growth stocks have taken hits recently, but their fundamentals remain strong, and their growth prospects are intact.

Read more »

A bull and bear face off.
Stock Market

Bear Market Bargains Emerge as Recession Stocks Return

If you want a deal, then go to the best stocks during a recession market dip.

Read more »

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

5 Canadian Dividend Stocks to Buy and Hold for the Next 20 Years

These Canadian stocks have paid dividends for decades, making them reliable investments to generate regular passive income.

Read more »