The ongoing bear market has created plenty of opportunities for investors. Stock valuations are now lower than theyâve been in several years. If youâre lucky enough to have some spare cash, here are the top three most undervalued stocks that should be on your radar.
The bear market isnât restricted to stocks. Bonds, commodities, and real estate have been losing value too. Some experts believe Canadaâs real estate bubble is finally ready to pop.
However, itâs important to know that the bubble was in residential real estate, not commercial. Commercial properties such as grocery stores, offices, and malls suffered a bear market in 2020. Many of these units havenât recovered their value since the lockdowns. As a result, commercial landlords like RioCan Real Estate Investment Trust (TSX:REI.U) are severely marked-down.
RioCan stock trades at just 10.9 times earnings per share. The company is on track to generate $1.6 in funds from operation (FFO) per unit. That means the price-to-FFO ratio of each unit is 12.8. RioCan delivers some of this to unitholders in the form of a 5% dividend yield.Â
I expect rents and occupancy to steadily climb in the years ahead. Malls and stores have fully reopened, while RioCan has a significant pipeline of future development that could bolster net income. By 2026, the portfolio will be more balanced between commercial and residential.Â
Put simply, RioCan is undervalued and should be on your radar.
Power Financial Corp.
Power Financial Corp. (TSX:POW) is an underrated financial giant. The companyâs subsidiaries such as Great-West Life Co. and IGM Financial are market leaders in their sectors. Meanwhile, Power Corp also has exposure to emerging FinTech startups such as Wealthsimple through its venture capital subsidiary Portag3.
Steady expansion in new verticals and regions has turned this company into a financial juggernaut. Operations are spread across Europe, Asia and North America with services ranging from wealth management to insurance.
Power Corpâs stock dropped 19% year to date along with the rest of the financial sector. It now trades at just 9 times earnings. That implies an 11% earnings yield. The dividend yield is 5.9% ,which is also impressive.Â
WELL Health Technologies
Telehealth sounds like an old story. During the pandemic, virtual healthcare services and online pharmacies saw a surge in users. However, this growth isnât likely to fade with the lockdowns ending. After all, speaking to a doctor online or getting medicines delivered home is more convenient.
Thatâs why WELL Health Technologies (TSX:WELL) is still clocking in tremendous growth numbers. Quarterly revenue was up 127% year over year in the most recent quarter. The company delivered $17.2 million in adjusted net income compared to a $1.2 million adjusted net loss in the same quarter from last year.Â
Management says the company is on track to generate $550 million in annual revenue. Meanwhile, the companyâs market value is just $788 million. Thatâs a price-to-revenue ratio of 1.4 – much lower than other tech firms.
If youâre looking for a long-term bet on the growth in healthcare technology, this stock should certainly be on your watch list.Â
Before you consider Power Corporation of Canada, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in August 2022 … and Power Corporation of Canada wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 27 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks
* Returns as of 8/8/22
setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
- Have $1,000? These 2 Stocks Could Turn it Into $2,000 Quickly
- 1 Beaten-Down Growth Stock Youâll Be Happy You Own in 2032
- The Real Estate Secret Your Portfolio Needs
- The 5 Best Growth Stocks to Buy Under $50
- TFSA Investors: Turn $81,500 Into $300,000 With These 2 Tech Stocks
Fool contributor Vishesh Raisinghani has positions in WELL Health Technologies Corp. The Motley Fool has no position in any of the stocks mentioned.