The TSX Composite benchmark has gone up 9.9% so far in 2024 as the Bank of Canada’s three consecutive interest rate cuts since June amid easing inflationary pressures have boosted investors’ confidence. While this bullish market momentum has taken many stocks to their all-time highs, some Canadian value stocks still look undervalued based on their financial growth potential.
So, if you have $5,000 to invest right now, this could be the perfect moment to pick up such fundamentally strong stocks at a big bargain and expect to earn healthy returns on investments in the years to come.
In this article, I’ll highlight two of the best value stocks you can buy right now and hold for years. Interestingly, both of these stocks currently trade below the $5-per-share mark.
StorageVault Canada stock
StorageVault Canada (TSX: SVI) is a Scarborough-headquartered company with a market cap of $1.9 billion as its stock trades at $4.99 per share after climbing by nearly 9% over the last year. It mainly operates a network of self-storage facilities across Canada, offering a mix of storage units and portable containers. Over the years, the company has grown through strategic acquisitions, which has helped it establish itself as a key player in the Canadian storage industry.
In the second quarter of 2024, StorageVault’s revenue climbed by 3.9% from a year ago to $74.1 million with the help of the strong performance of its core storage operations. On the profitability side, the company’s net operating income improved by 3.1% YoY (year over year) to $49.9 million. Similarly, its adjusted funds from operations during the quarter saw a strong 8.1% YoY increase to $23.2 million.
Moreover, StorageVault continues to focus on new quality acquisitions to expand its footprint in the top Canadian markets. Also, its growing portfolio of complementary services, such as portable storage and records management, is creating additional revenue streams. These factors should help StorageVault improve its financial growth trends further in the years to come and drive its share prices higher.
BlackBerry stock
Another attractive but seemingly undervalued stock you can consider right now is BlackBerry (TSX: BB). This Waterloo-headquartered tech firm has a market cap of $1.8 billion as its stock trades at $3.09 per share after witnessing about 34% value erosion so far in 2024. BlackBerry currently operates two main business segments: Internet of Things (IoT) and Cybersecurity, which it plans to split into two separate business entities in the near future.
In the first quarter of its fiscal year 2025 (ended in May 2024), the Canadian software firm’s IoT segment revenue jumped by 18% YoY to $53 million, exceeding its guidance. Consistent demand for its QNX platform for embedded systems and connected vehicles played an important role in this growth. Although the company’s cybersecurity segment revenue of $85 million was down on a YoY basis, it also surpassed its guidance.
Besides a strong demand outlook for reliable cybersecurity software solutions, BlackBerry’s growing interest in developing advanced technological solutions for the automotive industry strengthens its long-term growth outlook, making it an attractive stock to buy now and hold for years.
