3 insanely cheap Canadian stocks to buy in a very expensive market
the TSX today is filled with expensive inventory. While last year we were in an economic downturn with cheap stocks galore, this year is different. Now the TSX is trading at all-time highs, and most stocks are pretty much the same, with few Canadian stocks to buy on a low price. In fact, the S&P 500 is even higher by its cyclically adjusted price / earnings ratio than it was in 1929 just before the Great Depression!
But even then, there was still cheap stock available. And that also goes for today. There are many stocks whose valuations continue to climb very high. But there are exceptions. Here are three cheap Canadian stocks to buy, even in this expensive market.
Pharmaceutical Aurinia (TSX: AUP) (NASDAQ: AUPH) are currently trading at only 4.6 times book value. Stocks are still down around 25% in the past year alone, but many analysts believe that next year stocks could more than double.
So why is the stock so cheap? Investors continue to react to earnings reports, and Aurinia hasn’t had the best. The pharmaceutical company continued to register a loss thanks to little investment during the pandemic. However, that is all about to change thanks to the recent FDA approval of its drug. Lupkynis, the first oral medication to treat lupus nephritis.
Next year, the company expects huge changes from this new drug. Instead of reacting to the market, investors can view today’s share price as an opportunity. Sales will likely return to normal soon and beyond with this new drug. It is one of the best Canadian stocks to buy before it explodes in the next few years.
Another of the cheap Canadian stocks to buy is Viemed health (TSX: VMD) (NASDAQ: VMD). The respiratory illness home care provider has become incredibly necessary during the COVID-19 pandemic. How great would it have been if we could have taken care of patients in need of ventilators at home, rather than overcrowding hospitals?
Still, Viemed is incredibly cheap right now, trading at 10.57 times earnings. And stocks continue to fall 41% last year. This is mainly due to fears that the company will not be able to maintain its profits once the pandemic is over. More recently, he has seen his income increase by 12% year over year. But I would say it’s the opposite. This business will generate more interest than ever as we continue to fight COVID-19.
The company is likely to take these funds and reinvest them in research and development, offering even more home care equipment. This could mean that we are seeing an explosion in income across the board, not a decrease. So while stocks are currently down, this is one of the Canadian stocks to buy again before investors realize their mistake.
Now you might be thinking NorthWest Healthcare Properties REIT (TSX: NWH.UN) is boring, and you would be right. The Real Estate Investment Trust (REIT) focuses on healthcare properties. This provides an incredibly stable method of collecting income – especially since more recently it has seen a huge increase in renewed leases. The company now claims an average lease of 14.3 years with an occupancy rate of 97%!
And yet, the stock remains incredibly cheap. It is trading at an absurdly cheap price-to-earnings ratio of just 9.6. This share price is even more attractive given its still strong quarterly results. And add that to the steady 30.5% growth in the stock price over the past year alone. It is by far the best Canadian stocks to buy right now.
And even better? It offers a 6.19% dividend yield at the time of writing! So boring might not be that bad, come to think of it.
But if you want even more value and growth, this is the report for you!
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This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .
Amy Legate-Wolfe, a silly contributor, owns shares of Viemed Healthcare Inc. and NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool owns shares and recommends Viemed Healthcare Inc. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.