NTR:CC - Value Investors: 3 Once-in-a-Decade Discounts to Buy Now
2023-06-30 11:00:00 ET
Although the common reaction to seeing a recession materializing or the stock market selloff is to become fearful, value investors know that these are the best opportunities to buy stocks for the long haul.
Bull markets can last for years, which we obviously want to see as our investments can grow substantially in value. But for new investors getting started or investors who are constantly saving cash to add to their portfolios each year, when a bear market does eventually materialize, it’s essential to take advantage of the opportunity.
In today’s environment, after years of stocks gaining value, there are plenty of once-in-a-decade opportunities you won’t want to miss out on.
Therefore, if you have cash to invest today, here are three of the best stocks that value investors can buy now.
A top REIT to buy for long-term growth
If you’re a value investor looking to buy some of the highest-quality stocks while they trade cheaply, InterRent REIT ( TSX:IIP.UN ) is one you’ll certainly want to consider.
InterRent is a rapidly growing residential real estate investment trust (REIT) with properties in Ontario, Quebec, and British Columbia. Therefore, because it’s a residential REIT, the stock is considerably defensive. However, it’s also consistently expanding its portfolio, which makes it an attractive growth stock as well.
In fact, InterRent is constantly investing in acquiring more properties to expand its portfolio or investing in its existing properties to increase the value of the assets as well as the revenue and cash flow that these residential properties generate.
Therefore, it’s a stock that traded with a growth premium for years. However, with the stock now trading ultra-cheaply, it’s a perfect investment for value investors.
Prior to its selloff, InterRent was trading at a forward price-to-funds from operations (P/FFO) ratio of roughly 30 times. Today, however, InterRent’s forward P/AFFO ratio is just 22 times.
Therefore, while this high-quality, long-term investment is trading at such an attractive valuation, it’s one that value investors won’t want to miss.
A top agriculture stock to buy and hold for years
Another unbelievable discount that value investors won’t want to miss is the massive blue-chip stock Nutrien ( TSX:NTR ), which is trading over 40% off its 52-week high.
Nutrien is an excellent long-term investment because it provides essential services (producing key chemical ingredients for fertilizer) in the agriculture industry, has a dominant position as one of the largest producers in the world, and has vertically integrated operations, owning over 2,000 retail stores around the world.
Therefore, it’s an ideal stock to buy for the core of your portfolio and hold for the long haul, especially when you can buy it at a significant discount.
Plus, in addition to the resiliency it has, and the long-term growth potential, Nutrien also generates billions in cash flow, resulting in consistent dividend increases each year.
With the significant selloff, the Canadian Dividend Aristocrat now offers investors a yield of roughly 3.6%. And in the last five years, that dividend has increased by an impressive 32.5%.
Therefore, while the stock is cheap and the dividend yield is still relatively high, it’s the perfect stock for value investors to buy.
An impressive defensive growth stock that value investors will want to buy now
Finally, another high-quality stock with defensive qualities and attractive long-term growth potential is Jamieson Wellness ( TSX:JWEL ).
The health and wellness stock is trading almost 25% off its 52-week high, and its average analyst target price of more than $49 sits at a more than 60% premium from where Jamieson is currently trading at $29.50.
Jamieson is an excellent long-term investment, because it owns well-known brands, manufactures and sells vitamins and minerals, which are essential, making it considerably defensive, and it has years of growth potential.
We’ve seen Jamieson’s international expansion help grow sales rapidly, and it’s shown it can grow by acquisition as well.
Therefore, while the stock trades at a price-to-earnings ratio of just 18.1 times, much lower than its five-year average of 24.4 times, it’s certainly a stock value investors will want to add to their watchlist today.
The post Value Investors: 3 Once-in-a-Decade Discounts to Buy Now appeared first on The Motley Fool Canada .
Fool contributor Daniel Da Costa has positions in Nutrien. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy .
2023