1 Dirt-Cheap TSX Stock to Buy in September 2024

Restaurant Brands International (TSX:QSR) stock is starting to get incredibly cheap versus its growth.

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Depending on who you ask, September can be a pretty bad month to put new money to work in stocks. Undoubtedly, some truly panic-filled sell-offs happened in the month of September. And while it’s a seasonally unideal time to be a net buyer of stocks, especially with Warren Buffett’s firm recently doing quite a bit of selling, I think it’s a bad idea to base investment decisions on something as arbitrary as what the month is. September may have a bad rap with some, but I don’t think you’ll steer clear of the wreckage by taking a raincheck during the back-to-school season.

With stocks currently recovering from a summer sell-off, I’d argue that the seasonal correction (at least in the Nasdaq 100) has come early this year. And if markets smoothly move past September and election season, look for headlines to focus on the so-called Santa Claus rally. Avoiding stocks in September may be as bad of an idea as chasing in December. Ultimately, it would be best to buy stocks on your radar that you think are undervalued and sell those you think are overvalued. All else is secondary.

In this piece, we’ll check out one of the best dirt-cheap TSX stocks for the month of September. And while a correction (or something similar) may still be in store, I find it’s a better idea to stay the course and buy the dips rather than formulate some sort of exit plan. Remember, timing the stock market isn’t required to beat the markets over the long haul. In fact, trying to time it could lead to results that are less than satisfactory.

Restaurant Brands International

Restaurant Brands International (TSX:QSR) is a quick-serve restaurant firm that just doesn’t get the respect it deserves. The company’s earnings have been steadily improving over the years, and with a massive runway for growth at the international level, I just don’t get why the stock would be going for such a discount to most other rivals in the fast-food scene.

The company owns cherished brands such as Tim Hortons, Burger King, Firehouse Subs, and Popeye’s Louisiana Kitchen. As the firm looks to win back fast-food customers with better value options and menu innovation, the stock could have a stage set for a run well past all-time highs in the fourth quarter. Indeed, the fast-food plays have all fallen as the tides sank in recent quarters. That said, I find it hard to believe that the firm’s recent less-than-stellar sales growth numbers are the start of a negative trend.

Undoubtedly, the past few years have been unimpressive, with QSR stock losing 5%. With low expectations and a dirt-cheap multiple, though, I wouldn’t bet against the stock making up for lost time in the next three to five years.

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The firm is investing in all the right areas, and with a juicy 3.3% dividend yield, QSR stock stands out as one of the better low-cost dividend growers out there. At 17.4 times trailing price-to-earnings (P/E), QSR stock looks beyond undervalued while it’s going for close to $95 per share.

The broad fast-food scene seems to be navigating out of an inflation-induced haze of headwinds. As Restaurant Brands introduces intriguing new menu items across its portfolio of brands, I think it’s just a matter of time before Mr. Market realizes just how unfairly he’s punished the stock.

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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 positions in Restaurant Brands International. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

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