If you’re looking for quality TSX stocks to buy, it helps to buy when everyone else is selling. Sometimes buying stocks at a high works out, but the lower stocks go, the more likely it is that they’ll rise later. When stocks are down by extreme percentages, you often find the kinds of opportunities that fortunes are made on. In this article, I explore four quality TSX stocks to buy when everyone else is selling.
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Note on the stocks mentioned
Before going any further, I should state that the stocks below are ones that make for good buys when everyone else is selling them, which may not be right now. In fact, most of them have been doing well this year. Nevertheless, stocks go up and down all the time – providing good buying opportunities. With that out of the way, let’s look at the quality TSX stocks to buy when everyone else is selling.
TD Bank
The Toronto-Dominion Bank (TSX:TD) is a quality TSX stock in the banking sector. It has a pretty juicy 4% dividend yield. In its most recent quarter, it was solidly profitable and delivered significant revenue growth. The company’s U.S. retail segment was a sore spot: that business was held back by the asset cap it was under, due to some money laundering infractions a few years back. The lack of growth was disappointing, but on the flip side, TD was able to use funds withdrawn to comply with the asset cap as buyback financing. Partially for this reason, TD stock has done extremely well this year, outperforming the market by wide percentages.
Suncor
Suncor Energy (TSX:SU) is a quality TSX stock in the energy industry. It is one of Canada’s strongest integrated energy companies, involved in crude oil, natural gas, refining, and operating gas stations. SU stock has been rising this year, but there are frequently good opportunities to buy during moments of weakness in the oil and gas industry. Oil prices have been relatively healthy lately, and while the Organization of Petroleum Exporting countries (OPEC) has some cuts planned, they are not overly large ones. Overall, Suncor looks like a decent buy at just 10 times earnings.
Alimentation
Alimentation Couche-Tard (TSX:ATD) is a quality TSX stock in the retail business. It is known for its consistent profitability, moderate growth, and strong competitive position in Canadian gas stations. The company has invested diligently in overseas expansion too, with many locations in Europe. ATD stock has compounded at a steady clip over the years thanks to its prudent growth strategy. Last year, that compounding hit a snag when the company offered too high a price for Japan’s 7/11. Those who bought that dip were rewarded, as the company withdrew its 7/11 offer this month, sending ATD stock soaring.
Brookfield
Brookfield Corp (TSX:BN) is a quality TSX stock that is, like TD, in the financial services industry. It is a highly diversified conglomerate, involved in wealth management, insurance, renewable energy, infrastructure, and real estate. This diversification gives BN much optionality, and the ability to thrive in different market conditions. The company trades at a discount to its sum-of-the-parts value, meaning that the market value of its assets, net of debt, is lower than the current stock price. For my money, it’s a good value.
