ATY - 3 Top Canadian Value Stocks to Buy in April
With so many factors impacting stocks and the economy, there is no shortage of opportunities for Canadian investors to consider. In fact, there aren’t just several opportunities to consider. There are plenty of top Canadian value stocks you can buy in April.
Whether it’s stocks that are still cheap from the pandemic or others that have sold off during all the recent uncertainty, now is one of the best times to look for value . So here are three of the top Canadian value stocks to buy now.
A top Canadian tech stock
These days there are tonnes of tech stocks trading undervalued. From high-quality stocks like Shopify, which is trading roughly 60% off its all-time high, to a company like Lightspeed Commerce , which is roughly 75% off its high, it’s clear that tech is one of the best sectors to look for value today.
However, while there are plenty of stocks to buy that are cheap, few are as undervalued as AcuityAds Holdings (TSX:AT) (NASDAQ:ATY) . The adtech stock has been selling off for over a year now and currently trades at a forward enterprise value (EV) to EBITDA of just 6.9 times. That’s low in general, but for a high-growth stock, it’s exceptionally cheap. Furthermore, its EV to sales is just 1.1 times.
To put it into perspective, Shopify and Lightspeed have forward EV to sales ratios of 13 and 5.6 times. So if you’re looking for top Canadian value stocks to buy, AcuityAds and the rest of the tech sector are extremely cheap.
A top Canadian growth stock to buy for the long haul
goeasy (TSX:GSY) is another high-quality Canadian growth stock that’s trading well off its highs. But when looking at the numbers, it’s actually trading quite cheap as well, before you even factor in its insane growth potential.
So if you’re looking for top Canadian value stocks to buy in April, goeasy is certainly one of the best to consider.
In just the past three years, it’s grown its revenue by 67% and its net income by over 360%. Yet, at a forward price-to-earnings (P/E) ratio of 11.8 times, it still trades roughly in line with Canadian bank stocks, which have far less growth potential than goeasy.
So while the stock trades without a growth premium, it’s one of the top value picks you can make today.
A recovery stock flying under the radar
Lastly, as the pandemic is finally winding down, there is still potential to find recovery stocks. A company like Recipe Unlimited (TSX:RECP) which owns several restaurants, is one that has a tonne of potential to see a major recovery. So while it’s still cheap, it’s one of the top Canadian stocks to buy now.
Restaurants, in general, have already started to see a meaningful recovery, but as we approach the summer and Covid restrictions continue to be dropped, this could finally be the year these stocks recover.
Right now, Recipe Unlimited trades at a forward P/E ratio of just 9.4 times. Furthermore, its forward EV to EBITDA ratio is 10.1 times. So with the company on the verge of a full recovery and with the potential to increase that EBITDA significantly, it’s one of the top Canadian value stocks to buy in April.
It’s also worth noting that Recipe Unlimited’s average target price from analysts, $25, is more than 70% above where Recipe was trading on Friday. So it’s clearly one of the best opportunities to consider today.
The post 3 Top Canadian Value Stocks to Buy in April appeared first on The Motley Fool Canada .
Fool contributor Daniel Da Costa owns AcuityAds Holdings Inc. and goeasy Ltd. The Motley Fool owns and recommends AcuityAds Holdings Inc. and Shopify. The Motley Fool recommends Lightspeed Commerce.
2022