ATZ:CC - 3 Unbelievable Value Stocks to Buy in April
2023-03-30 14:00:00 ET
With so much uncertainty in markets these days, many value stocks are trading at unbelievably cheap prices. These stocks are some of the best to invest in since they offer investors the opportunity to capitalize on undervalued gems.
Furthermore, when you can find high-quality stocks with excellent long-term growth potential trading undervalued , they not only have the opportunity to recover back to fair value but also continue to grow the value of their shares for years to come.
This is why it’s essential to look for high-quality stocks trading undervalued and not necessarily the cheapest stocks on the market.
So if you’re looking to buy stocks for the long haul in this environment, and take advantage of the recent sell-off in many Canadian stocks, here are three of the best value stocks on the TSX to buy in April.
A top Canadian retail stock
With Aritzia ( TSX:ATZ ) selling off over the last four months, it’s rapidly becoming one of the best stocks that investors can buy today.
Aritzia is one of the most impressive growth stocks in Canada. It’s been growing rapidly and consistently, both by expanding its store count and using its impressive e-commerce platform.
The majority of its stores are still located in Canada. Though the retailer has been growing rapidly across the United States and continues to have a tonne of long-term potential.
In only the last five years, its sales have increased from $720 million to over $2 billion, a compounded annual growth rate (CAGR) of 22.7%. Furthermore, analysts expect Aritzia will finish fiscal 2023 with over 40% growth in its sales and another roughly 16% in fiscal 2024.
It’s also expected to increase its normalized earnings per share by 19% in fiscal 2023 and another 18% in fiscal 2024.
Therefore, as Aritzia trades at just 19.4 times its forward earnings, below its average of 30 times over the last two years, it’s certainly one of the best value stocks to buy now.
One of the best value stocks to buy in the real estate sector
Another excellent value stock to buy now is InterRent REIT ( TSX:IIP.UN ), a real estate stock that owns residential properties in Ontario, Quebec, and B.C.
InterRent is an ideal investment because it operates in a defensive industry, but it’s also a top growth stock that’s constantly looking to expand its portfolio.
So not only do investors have the opportunity to buy the stock cheaply today, but it should continue to grow for years, offering the potential for significant rewards.
In the last five years, its sales have nearly doubled, growing from $109 million to over $216 million, a CAGR of 14.7%. It has also grown its funds from operations (FFO) from just under $35 million to $77 million over that stretch, a CAGR of 17.3%.
So with InterRent now trading well off its highs and at a forward price-to-FFO of just 23.3 times, it’s one of the best value stocks to buy now.
A top Canadian tech stock with massive growth potential
Lastly, AcuityAds Holdings ( TSX:AT ) is a stock that’s trading ultra-cheap and has significant growth potential, placing it among one of the best stocks you can consider today.
AcuityAds is an adtech stock that’s seen its operations impacted heavily over the last year. Advertising dollars almost always fall ahead of a recession as many companies are expecting a pullback in consumer spending. They, therefore, opt to spend less on marketing campaigns.
AcuityAds has released a new proprietary self-serve advertising platform while trying to considerably build up its sales. Meanwhile, the pullback in the economy is severely impacting its valuation.
Over the medium-to-long term, though, AcuityAds has tonnes of potential to grow its sales. So with the stock trading at a forward enterprise value (EV)-to-sales ratio of a low 0.3 times, it’s much cheaper than where it has traded over the last two years, averaging a forward EV-to-sales ratio of 1.8 times.
Therefore, while this high-potential Canadian tech stock is trading dirt cheap, it certainly looks like one of the best value stocks to buy today.
The post 3 Unbelievable Value Stocks to Buy in April appeared first on The Motley Fool Canada .
Fool contributor Daniel Da Costa has positions in AcuityAds, Aritzia, and InterRent Real Estate Investment Trust. The Motley Fool has positions in and recommends AcuityAds and Aritzia. The Motley Fool has a disclosure policy .
2023