With the TSX Index close to regaining all of the ground it lost during Trump’s Liberation Day (the S&P 500 has already bounced back in a V-shaped fashion), value hunters may be wondering if they should talk a step back and wait for another pullback to take us to 52-week lows or if it’s time to start doing some buying before the TSX Index and perhaps the S&P 500 and Nasdaq 100 have a chance to break through to new all-time highs, perhaps on the back of new U.S. trade deals and re-fuelled optimism that a recession can be avoided. And, of course, let’s not forget about artificial intelligence (AI) as it moves into the agentic era. Indeed, value hunters shouldn’t time the market, even if they were left empty-handed during the recent tariff correction.
At the end of the day, investors should look to invest for the long haul rather than pay too much attention to the market watchers who may flinch when it turns out to be the best time to start doing some buying. Only time will tell which direction stocks will go from here. If there’s no recession and tariffs don’t survive into the late summer, perhaps the stock market rebound could have further room to run. In any case, there are some great value deals for value seekers who still have a bit of extra Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) cash to put to work.
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Magna International
To buy shares of Magna International (TSX:MG) right here seems to be jumping into the deep end of the “risk” and “value” waters. And while exemptions on auto tariffs, which the company sees as providing “certainty and relief,” are welcome, there’s no telling when or if Trump will change his mind, as PM Mark Carney and Donald Trump finally meet to discuss the trade of U.S.-Canada trade. Indeed, there’s a lot on the line as the two hope to get their concerns out on the table before a hopeful deal is signed.
In any case, MG stock took a big hit on Friday, collapsing just shy of 6% in a single day, thanks in part to a horrid first-quarter earnings miss. Indeed, the tariff mitigation plan could prove costly. And while it’s not too late for Trump to avoid a recession and unnecessary restructuring, I’d be inclined to think that the latest slip in MG shares was overdone.
Sure, Magna missed the profit estimate, but perhaps it’s already served most of its time in the penalty box. Though it’s a scary time to get into the auto-part maker, the swollen dividend yield and valuation make for a rather intriguing dip-buy.
Is the name one to buy hand over first at $45 and change per share?
Probably not. But I think it’s time to form a starter position if you’re looking for value and yield. The stock has already lost close to 64% of its value. While that doesn’t mean it can’t fall further, I think the 9.3 times trailing price-to-earnings multiple and 5.8% dividend yield make for too attractive a value proposition to pass up. In any case, I’d be inclined to buy lower as there’s already a lot of tariff unknown priced in.
