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4 days ago
- Business
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2 TSX Value Stocks to Buy When Everyone Else Is Selling
Written by Adam Othman at The Motley Fool Canada There is always value to be found in the stock market, even when the broader market has a bullish trend. As of this writing, the S&P/TSX Composite Index, which is the benchmark for the Canadian stock market, is nearing new all-time highs. The index is up by almost 17% from its low on April 8, 2025. Typically, savvier investors who can see through the noise of a market sell-off focus on investing when everyone else sells. What if I told you those investors still have opportunities to buy undervalued stocks even when the market is hitting new all-time highs? Year to date, the TSX is up by 5.75%. However, the TSX still has plenty of stocks trailing behind the rest of the market. Today, I will discuss two of them to help you determine whether they might be good candidates to consider long-term winners or stocks to avoid like the plague in your self-directed portfolio. Air Canada (TSX:AC) is a battered and bruised giant in the Canadian airline industry. The $6.05 billion market-cap company is Canada's flag-bearing and largest airline. The company operates domestic, U.S.-Canada transborder flights and several international routes worldwide. Air Canada was one of the top 20 largest airlines worldwide before COVID struck in 2019. Since the pandemic, the stock has failed to recover to better valuations. Despite not operating any flights, AC stock faced considerable cash burn to maintain its fleet, resulting in massive debt for the company without a recovery through operational revenue. Air Canada's most recent earnings report for the first quarter of 2025 saw it report $5.2 billion in revenue. Slightly down from $5.23 billion in the same quarter last year, the airline still generated around $387 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The company continues to expand its capacity, and while it may take a long time, there seems to be a recovery on the horizon. Suncor Energy (TSX:SU) is another battered stock but in an entirely different industry. The $61.02 billion market-cap firm based in Calgary is an integrated energy company. It has operations that include oil sands development, production and upgrading, petroleum refining, offshore oil and gas operations, and wholesale distribution networks to retail the end product directly to consumers. The company is also advancing its transition into a lower-emission future. The company trades at roughly 10.29 times trailing earnings, indicating that it might be undervalued right now. As of this writing, Suncor stock trades for $49.71 per share and distributes $0.57 per share each quarter to its shareholders, reflecting a 4.59% annualized dividend yield. It can be a good investment to consider for locking in high-yielding dividends and long-term capital gains. For most investors, investing when the market is going downward does not make sense. Why invest in a bear market when there's nothing but losses everywhere? Smarter investors know how to use those downturns as opportunities to invest in undervalued stocks at a bargain. Despite what some investors might think, there still are opportunities during upticks to invest in bargains. Suncor stock and Air Canada stock might seem very risky investments, and that's because they are. However, the potential to recover to better valuations in the long run is there. If you have a well-balanced portfolio and a higher risk tolerance, these two might be good bets to pay off a few years down the line. The post 2 TSX Value Stocks to Buy When Everyone Else Is Selling appeared first on The Motley Fool Canada. Before you buy stock in Air Canada, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Air Canada wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
- Business
- Yahoo
Is TD Bank Stock a Good Buy in June 2025?
Written by Adam Othman at The Motley Fool Canada Canadian bank stocks have been off to an impressive start despite all the fears that trade tension-induced panic due to tariffs might bring the Canadian economy into recession. Right now, there's a pause on tariffs, and the recession feared to be inevitable has yet to come around. As we move closer to the halfway mark of 2025, the S&P/TSX Composite Index only seems to be climbing to new all-time highs. Positive movement in the Canadian benchmark index reflects a broader picture of the Canadian stock market and, in turn, the economic situation. With the index reaching newer heights, it seems that the so-called top Canadian bank stocks have become quite the leaders, driving the market upward. In light of this development, we will take a closer look at one of the biggest bank stocks to determine whether it might be a good investment at current levels. Toronto-Dominion Bank (TSX:TD) has been quite a comeback story over the last few years. The reason I want to focus on TD Bank stock is its remarkable performance despite all the trouble it faced with American regulators. The $164 billion market-cap stock faced regulatory action in the US due to the bank's money-laundering fiasco last year. The restrictions and penalties imposed on it had a negative impact on the bank's performance in the stock market, but it is making remediations. The financial institution has new managers aboard, and it has revisited its growth plan. These factors are major contributors to the stock's performance in the last few weeks. The bank has paid all the fines it was supposed to, and it will settle with the asset cap on US-based assets. The bank is also selling off some of its non-core assets to improve its liquidity position. Greater liquidity can mean more spending money for the bank to make big moves. However, it remains to be seen what the new CEO of the bank will consider doing with the newly refreshed war chest. The bank is playing the long game in the US market, but its US-market-based growth will face significant restrictions for a few years to come. TD Bank's operations in the US market might be slower now, but that doesn't mean there is no growth potential in the domestic side of things. The extra money that the bank amasses from the sale of non-core assets can be valuable for any planned acquisitions or other growth-focused decisions the bank makes. As of this writing, TD Bank stock trades for $95.22 per share and distributes $1.05 per dividend per share each quarter to its investors, translating to an annualized 4.4% dividend yield. Suppose you're looking for a reliable dividend stock that is fundamentally strong and supports regular dividends. In that case, TD Bank might be an excellent pick to consider for your self-directed investment portfolio. The post Is TD Bank Stock a Good Buy in June 2025? appeared first on The Motley Fool Canada. Before you buy stock in TD Bank, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and TD Bank wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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23-05-2025
- Business
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1 Magnificent Construction Stock Down 22% to Buy and Hold Forever
Written by Adam Othman at The Motley Fool Canada Identifying a solid Canadian stock that you can buy, hold, and feel good about for decades is never an easy achievement, especially when there's a lot of market volatility all around you. Every once in a while, a company will pop up on your radar. It will show promise of steady growth, rising dividends, and a strong business model in an industry with a solid outlook. Sometimes, a stock like this might be available at a bargain, making it too attractive to ignore. If you're bullish about the construction sector and want to invest in a Canadian stock with plenty of upside potential, Bird Construction (TSX:BDT) might just be the holding you're looking for. It is a magnificent small-cap stock that has quietly made a place for itself in delivering good returns, and right now, it's on sale. Bird Construction is a $1.40 billion small-market-cap company headquartered in Ontario, operating as a general contractor in the Canadian construction market. The company's focus in the general contracting industry is on industrial, commercial, and institutional projects. The company offers construction services for these markets, including new construction, industrial maintenance, repair, and operations services, vertical infrastructure building, electrical, mechanical, specialty trades, heavy civil construction, and contract surface mining. A small-cap stock, Bird Construction is well-positioned to deliver solid long-term wealth growth to its investors. The company's civil construction capabilities include site preparation, foundations, and hydroelectric projects. It also makes and renovates healthcare facilities, educational institutions, mixed-use residential developments, and government buildings. Being a jack of all trades has benefited the company over the years, and it has passed them on as returns to its investors. As of this writing, BDT stock trades for $25.31 per share, down by over 22% from its 52-week high. However, the stock is up by 330.44% from the same point five years ago. The current dip from its all-time high of $32.67 per share gives you the opportunity to invest in its shares at a significantly lower price point and lock in an inflated 3.32% dividend yield. The company expects its revenue to increase from $3.4 billion last year to $4.71 billion by 2027. It also anticipates its adjusted earnings per share (EPS) to increase from $2.04 to $4 per share by 2027. Analyst expectations also suggest that BDT stock will increase its net income margin by half over this three-year period. Improving financials will allow the company to fund growing dividends consistently. Presently, its dividends are $0.85 per share but are expected to rise to $1.12 by 2027. The company's recent quarterly earnings report saw its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increase by a massive 42% year over year. Bird Construction stock seems to have pretty much everything you might want in a stock to consider adding to your self-directed investment portfolio for the long run. It trades at arguably undervalued share prices and has strong fundamentals, solid growth potential, recurring revenues, and a growing customer base. The company's management handles operations efficiently to turn the revenue into healthy profit margins. Overall, I think the construction stock has what it takes for the foundations of an excellent long-term winner to buy and hold in your self-directed portfolio. It might be worth investing in while its share prices lag behind the rest of the market. The post 1 Magnificent Construction Stock Down 22% to Buy and Hold Forever appeared first on The Motley Fool Canada. Before you buy stock in Bird Construction Inc., consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Bird Construction Inc. wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-05-2025
- Business
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How I'd Invest $7,000 in My TFSA for $660 in Tax-Free Annual Income
Written by Adam Othman at The Motley Fool Canada Canadians have plenty of taxes to contend with, making it incredibly difficult to get the best use out of any savings they have to contribute to their retirement plans or any short- or long-term financial goals. Fortunately, the Tax-Free Savings Account (TFSA) has been a big blessing for Canadians since the account type was introduced in 2009. As the name suggests, the TFSA is an account that you can use to enjoy returns on savings in the account without incurring taxes. However, the tax-sheltered returns in the account are not limited to interest earned on cash held in a TFSA. You can use the TFSA as an investment vehicle to hold more than cash, including investments in the stock market. This means that any returns on dividends or capital gains from holdings in the account can grow your wealth without any taxes. Each year, the Canada Revenue Agency (CRA) increases the TFSA contribution limit. For 2025, the new contribution limit is $7,000. If I were to use the new contribution room, here's a quick look at how I'd try to earn around $600 in tax-free income each year by investing in two TSX dividend stocks. Dividend stocks are publicly traded companies offering investors quarterly or monthly payouts from profits to reward them for loyalty. Investing in a dividend stock and holding its shares in a TFSA effectively lines your account balance with extra cash. You can then reinvest the dividend income to purchase more shares of dividend stocks, unlocking the power of compounding to accelerate your wealth growth in a TFSA. I will discuss two high-quality dividend stocks you can use with a hypothetical $7,000 contribution room. Cardinal Energy (TSX:CJ) is a Calgary-based, $916.57 market capitalization company that engages in the acquisition, exploration, and production of petroleum and natural gas in Saskatchewan and Alberta. The company generates sizeable revenue through its operations, which it uses to expand its portfolio and deliver returns to investors through shareholder dividends every month. As of this writing, CJ stock trades for $5.71 per share and boasts a 12% annualized forward yield. Considering that you are getting paid that much for simply owning the stock, that is a pretty good return on your investment. The company's latest earnings for the end of 2024 saw it report $65.1 million in the quarter, showing a marginal improvement from the same quarter in the previous year. It can be a safe bet to consider for dividend income. Doman Building Materials Group (TSX:DBM) is a $616.95 market capitalization company headquartered in Vancouver. It is a wholesale distributor of various materials used in home renovation and construction, servicing several markets. Provides materials for industrial, new home construction, and home renovation markets. It also owns and manages several private timberlands and forest licenses, diversifying its revenue streams further. The vertically integrated building material group reported a 28.5% net decline in its 2024 earnings due to lower pricing for certain construction material categories, but it is a resilient business that has demonstrated the ability to overcome challenges time and again. As of this writing, it trades for $7.08 per share and boasts a 7.91% forward annualized dividend yield that it distributes on a quarterly schedule. Using the TFSA contribution room to build a portfolio of reliable dividend stocks can provide significant, tax-free returns. While you should never put all your eggs in one or two baskets, below is an example illustrating how you can use $7,000 in a TFSA to generate more than $600 per year in extra income that you can enjoy tax-free. Stock Recent Price No. of Shares Annualized Div Per Share Payout Frequency Annualized Total Payout CJ $5.71 539 $0.72 Monthly $388.08 DBM $7.08 500 $0.56 Quarterly $280.00 Total Annual Dividend Income $668.08 The post How I'd Invest $7,000 in My TFSA for $660 in Tax-Free Annual Income appeared first on The Motley Fool Canada. Before you buy stock in Cardinal Energy Ltd., consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Cardinal Energy Ltd. wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
Yahoo
11-05-2025
- Business
- Yahoo
1 Magnificent Healthcare Stock Down 46% to Buy and Hold Forever
Written by Adam Othman at The Motley Fool Canada Global stock markets have been incredibly volatile for several months, leaving plenty of new investors unsure of where to get the best returns with their capital right now. If you can look past the challenges of short-term market volatility and embrace a long-term view, there are plenty of high-quality opportunities waiting for your investment capital. The global landscape is changing across every sector of the economy, especially with the sudden rise in artificial intelligence (AI) technology advancements and adoption. AI is making improvements in every space, including the healthcare sector. The profound shift in healthcare technology, enabled by years of innovation and accelerated with AI technology, presents new and exciting growth opportunities for investors who can identify them. One such tech stock in the healthcare sector is WELL Health Technologies (TSX:WELL). The $983.91 million market-cap company is one of the businesses leading the charge in healthcare innovation, and it trades at a considerable discount from its all-time highs. Let's take a better look at the stock to see why it might be an excellent holding to add to your self-directed investment portfolio. WELL Health used to be a telehealth company that came into the limelight a few years ago during the pandemic. Social-distancing restrictions and health scares forced telemedicine adoption to speed up much faster than anticipated. Business boomed for WELL Health, as it provided better access to healthcare services to patients when they needed it the most from the safety of their homes. The company used the momentum well and made a series of aggressive acquisitions that have made it a comprehensive digital healthcare company. It is now Canada's largest owner and operator of outpatient health clinics, delivering healthcare-related services across Canada and the U.S. More recently, the company has started integrating AI technology into its range of services to improve the quality of patient care while streamlining operational efficiencies for healthcare providers. One of the best examples of its AI-powered innovations is WELL AI Voice, an assistant for healthcare providers that offers clinical documentation through natural language processing and voice recognition. Its WELL AI Decision Support offers important insights and recommendations to healthcare professionals by analyzing vast sets of patient data to help them make more efficient treatment plans and accurate diagnoses. Despite the decline in the need for telehealth services in the post-pandemic era, WELL Health is doing well as a business. The company had strong financials in fiscal 2024, reporting a 19% year-over-year growth in annual revenue, an almost 75% increase in net income, and a 16.3% uptick in free cash flow attributable to its investors. Looking ahead, the company has a positive outlook for fiscal 2025, with its projected revenue expected to be as high as $1.5 billion. As of this writing, WELL Health stock trades for $3.95 per share, down by over 46% from its 52-week high. If you are interested in investing in a high-growth space and have a well-balanced portfolio to help you ride the wave of any short-term market volatility, WELL Health stock can be an excellent pick to consider. The post 1 Magnificent Healthcare Stock Down 46% to Buy and Hold Forever appeared first on The Motley Fool Canada. Before you buy stock in WELL Health Technologies, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and WELL Health Technologies wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
