In this article, we discuss the 5 undervalued Canadian stocks to buy now. If you want to read about some more undervalued Canadian stocks, go directly to 10 Undervalued Canadian Stocks to Buy Now.
5. TFI International Inc. (NYSE:TFII)
PE Ratio: 11.52
TFI International Inc. (NYSE:TFII) provides transportation and logistics services. Some of these include pickup, consolidation, delivery, as well as tank container services. The company boasts a fleet of over 13,000 tractors, more than 50,000 trailers, and around 9,000 independent contractors for the purpose. The firm was formerly known as TransForce but changed the name to TFI International in 2016. It is headquartered in the Saint-Laurent city of Quebec. It employs close to 30,000 people across the globe.
TFI International Inc. (NYSE:TFII) is steadily building a dividend profile. Over the past two years, the company has paid a consistently growing dividend to shareholders. On June 15, it declared a quarterly dividend of $0.27 per share, in line with previous.
In late April, TFI International Inc. (NYSE:TFII) posted earnings for the first quarter of 2022, reporting earnings per share of $1.68, beating market estimates by $0.38. The revenue over the period was $2.1 billion, up over 90% year-on-year.
4. The Bank of Nova Scotia (NYSE:BNS)
PE Ratio: 9.09
The Bank of Nova Scotia (NYSE:BNS) is a Canadian banking firm. Some of the services it provides include debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance, as well as cash management and trade finance solutions. The firm operates in a range of countries like the United States, Mexico, Peru, Chile, and Colombia. It was founded in 1832 and employs over 90,000 people across the world. It is headquartered in the Halifax region of Nova Scotia.
The Bank of Nova Scotia (NYSE:BNS) stock has climbed in the past week as the Canadian government tries to rein in inflation through aggressive rate hikes. On July 13, the central bank in Canada raised the policy rate by 100 basis points.
On May 25, The Bank of Nova Scotia (NYSE:BNS) posted earnings for the second fiscal quarter, reporting earnings per share of C$2.18, beating estimates by C$0.22. The revenue over the period was C$7.9 billion, up over 2% year-on-year.
3. Canadian Imperial Bank of Commerce (TSX:CM.TO)
PE Ratio: 8.92
Canadian Imperial Bank of Commerce (TSX:CM.TO) is a diversified financial services firm based in Toronto. In April, the bank had announced plans for a 2-for-1 stock split. At the time, the bank had more than 450 million outstanding shares which were converted into over 900 million shares. The stock climbed marginally after the announcement but has since lagged due to the overall slowdown in the Canadian economy due to inflation. In the past twelve months, the shares are down more than 12%.
Canadian Imperial Bank of Commerce (TSX:CM.TO) has an impressive dividend history stretching back over three decades. In the past six years, these payouts have grown. On May 28, the firm raised the quarterly dividend by 3% to C$0.83 per share.
In late May, Canadian Imperial Bank of Commerce (TSX:CM.TO) posted earnings for the second fiscal quarter, beating market estimates on earnings per share and revenue by C$0.05 and C$180 million respectively.
2. Canadian Natural Resources Limited (NYSE:CNQ)
PE Ratio: 8.12
Canadian Natural Resources Limited (NYSE:CNQ) operates as an integrated oil and gas firm. The firm produces and sells crude oil, natural gas, and natural gas liquids. It is headquartered in Calgary and was founded in 1973. It employs over 9,000 people. It has over 10,528 million barrels of proven crude oil, bitumen, and natural gas liquids reserves, as well as total proved plus probable crude oil, bitumen, and natural gas liquid reserves of 13,271 MMbbl. It was formerly known as the AEX Minerals Corporation.
Canadian Natural Resources Limited (NYSE:CNQ) has a rich dividend history stretching back two decades. In the past six years, the payouts have registered consistent growth. On May 5, the firm declared a quarterly dividend of C$0.75 per share, in line with previous.
In earnings results for the first quarter of 2022, posted in early May, Canadian Natural Resources Limited (NYSE:CNQ) reported adjusted funds flow of C$5 billion, an increase of C$2.3 billion compared to the same period last year.
1. TC Energy Corporation (NYSE:TRP)
PE Ratio: 4.44
TC Energy Corporation (NYSE:TRP) is an energy infrastructure company. The firm primarily builds and runs a network of natural gas pipelines which extend to over 93,000 km. This network transports natural gas to power generation plants, industrial facilities, and LNG export terminals. The company also has natural gas storage facilities with a total working gas capacity of 535 billion cubic feet. It runs a 4,900 km liquids pipeline system that connects Alberta crude oil supplies to refining markets in the United States.
In early July, news agency Reuters reported that TC Energy Corporation (NYSE:TRP) had reached an agreement with authorities in Mexico to build a $5 billion gas pipeline in the Veracruz state on the Gulf of Mexico coast.
The pipeline, which will connect the ports of Tuxpan and Coatzacoalcos, will be built by TC Energy Corporation (NYSE:TRP) and CFE, a state-owned power firm in Mexico. TC Energy is headquartered in Calgary.
You can also take a peek at 12 Best Environmental Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.
