Are you looking to buy beaten-down stocks that are on sale in 2025?
Overall, the pickings for such stocks are quite slim. The TSX Index has hit several all-time highs this year, and many international markets – including U.S. ones – are in the same boat. However, there are still pockets of value to be found in sectors like energy, retail and financials. In this article, I’ll explore three TSX stocks to buy with $1,000 while they are still on sale.
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Suncor
Suncor Energy Inc (TSX:SU) is one beaten-down stock that has really struggled to recover. Down 22% from its all-time high set all the way back in 2008, it is having a hard time. If we consider the pre-2008 oil market dynamics to be fundamentally different from those seen today, and not valid for comparison, then we can use Suncor’s 52-week high as a substitute. The high was $58, and Suncor is today down 8.4% from that level.
Partially because of its declining stock price, Suncor is pretty modestly valued today. At today’s price, it trades at 11.3 times earnings, 1.3 times sales, and 1.5 times book value. Its EBITDA earnings are up 48% annualized over the last five years, and its book value is up 5% annualized in the same timeframe. If oil prices hold up relatively well, then Suncor’s growth streak should continue.
Brookfield Renewable
Brookfield Renewable Partners (TSX:BEP.UN)(TSX:BEPC) is a renewable energy company that is down considerably from its all-time high, set back in July. Despite the decline in its stock price, Brookfield Renewable is doing well as a business, having recently scored hydro power supply deals with two of America’s “Magnificent Seven” companies. Despite the success and growth, BEP.UN shares/units are quite cheap, trading at 2.7 times sales, 2.1 times book and 11.1 times cash flow. Overall, it looks like there might be a price/value disconnect here. If so, Brookfield Renewable is a buy.
EQB
EQB Inc (TSX:EQB) is a Canadian branchless bank that is down 8.2% from its all-time high set earlier this year. In this case, the declining share price has produced a bargain valuation, with EQB trading at just 9.4 times earnings.
Why is EQB stock down?
One possible reason is that its most recent earnings release missed expectations. Another possible reason is the fact that the Bank of Canada’s recent rate cuts could reduce the bank’s net interest income (NII). Regardless, EQB should do reasonably well long term.
Air Canada
Air Canada (TSX:AC) stock is taking a beating this year, having been hit with a double whammy of risk factors: Trump tariffs and a likely flight attendant strike. Both factors were associated with a decline in the airline’s stock price. As a result of the beating it has taken, Air Canada is now quite cheap, trading at 4.7 times reported earnings, 0.3 times sales, and 1.5 times cash flow. AC’s last earnings release showed that Trump tariffs did not affect the company in the second quarter, and the coming flight attendant strike is likely to be short-lived. So, there may be some hidden value here.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX:ATD) is another stock that’s been taking a beating this year, down 18.6% from its all-time high set in February 2024. The stock got beaten down for several reasons, including some bad earnings releases and a failed attempt to take over Japan’s 7-11. The 7-11 bid that ATD’s management made was in fact a questionable one: the company offered a price implying a P/E ratio far higher than those Japanese stocks usually trade at. On the other hand, ATD has long since walked off its bad 2024 earnings reports, with revenue up 5.2% and free cash flow up 6.7% in the TTM period. The company’s long-term capital allocation track record is very good, yet the stock trades below the average TSX stock multiple, at just 18.5 times earnings. On the whole, this stock might just be a buy.
