3 Cheap TSX Stocks to Buy Today
The Motley Fool
Published May 25, 2021 10:21
Updated May 25, 2021 10:45
3 Cheap TSX Stocks to Buy Today
Over the last year, stocks have rallied excessively, earning investors great returns. However, they’ve also been getting more expensive for those investors looking to add positions to their portfolios. This has made it a lot harder to find cheap stocks on the TSX that are actually worth buying today.
Over the last few weeks, though, with all the uncertainty and volatility creeping back into markets, certain stocks have started to sell-off.
These discounts, whether big or small, can offer significant opportunities. Usually, the best stocks hardly ever trade undervalue. So any chance you can get to buy them at a discount you should take.
Here are three cheap TSX stocks to buy today.
A top Canadian gold miner If you are looking for cheap TSX stocks to buy today, one of the best places to look is in gold. Gold has underperformed the market over the last nine months, offering a tonne of value for investors.
This means there are several stocks to consider, but my recommendation for investors would be B2Gold (TSX:BTO)(NYSEMKT:BTG).
B2Gold is not only one of the cheapest stocks on the TSX to buy today. It’s also one of the highest-quality gold stocks to own long-term.
It’s especially cheap when you consider how impressive its operations are. B2Gold has some of the lowest production costs in the industry, one of the most important factors of a mining company’s operations.
Furthermore, B2Gold has executed well for years and grown consistently. Today, these massive operations and low production costs give it incredible margins making the gold stock a cash cow.
This has resulted in B2Gold returning a tonne of cash to shareholders. So, in addition to the fact that it’s cheap and has impressive operations, B2Gold also pays a dividend that yields an attractive 3.2%.
A top micro-cap growth stock Another high-potential stock to consider today is Drone Delivery Canada (TSXV:FLT). FLT is a top growth stock to buy today as it’s one of the cheapest on the TSX Venture exchange.
When you consider the incredible long-term value of Drone Delivery Canada, the stock is extremely undervalued. It had a massive rally late last year. However, it’s lost nearly 50% of its value since then despite continuing to improve its operations over the last six months.
In recent weeks, it’s continued to sell off during all the volatility, creating an even bigger opportunity for investors. Plus, it’s been making a tonne of progress lately.
The company was just awarded its third patent earlier this month. Furthermore, it continues to grow its pilot partners as it just signed a deal with the University of British Columbia.
This micro-cap is incredibly cheap at a market cap below $300 million, making it a top stock to buy today, especially considering it’s one of the top growth stocks on the TSX Venture.
Get The App
The top TSX growth stock to buy today One of the best Canadian stocks on the TSX, Shopify (TSX:SHOP)(NYSE:SHOP) continues to trade cheaply, making it one of the best stocks to buy today.
Shopify is a stock that needs no introduction. It’s a massive e-commerce powerhouse that’s been growing not just its sales rapidly, but also the entire e-commerce sector.
Because of the incredible growth that Shopify achieved due to the pandemic, many investors think the rapid growth is over. Shopify, though, has always been an incredible long-term investment and continues to be. If anything, the stock is in an even more promising position today, as the industry continues to grow in popularity and scale costs.
So, just because brick-and-mortar stores will continue to reopen doesn’t mean there’s no growth left in e-commerce.
And since Shopify almost always trades with a growth premium, seeing it at a reasonable price today makes it worth an investment.
So although it may not be as cheap as some other stocks on the TSX because of its incredible growth potential, it’s still one of the top stocks to buy today.
The post 3 Cheap TSX Stocks to Buy Today appeared first on The Motley Fool Canada.
Fool contributor Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify and recommends the following options: short January 2023 $1160 calls on Shopify and long January 2023 $1140 calls on Shopify.
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.