Canadian investors interested in adding stocks to their portfolios can consider the stocks below. They are some of the undervalued stocks in the market today. Given that the TSX Index is at an all-time high again, below are the top two stocks Canadian should consider buying.
Barrick Gold (TSX: ABX) (NYSE: GOLD)
Barrick Gold owns five of the tops tens mines on earth. The firm is also developing a sixth mine to be added to their list. In recent years, the company has to shore its balance sheet. In the last gold rally, the company made enormous acquisitions that left the firm saddled by heavy debt.
However, after the rebound of the gold price, the firm has paid all its debt. The firms already have excess cash return to investors. In the past three years, the divided has tripled. The yield of the current share price is high by 3.3 percent.
The gold price rose from $1, 700 in March to $1, 900the recent crypto crash combined with the seasonal strength of the gold market, could take gold price above $2, 000 once in the coming months. At the moment, Barrick Gold stocks look cheap, and for sure, the firm generates significant cash flow and attractive payout.
Suncor (TSX: SU) (NYSE: SU)
It is primarily known for its oil sands operations. The firm also owns refineries and retail locations. Oil refineries and retails locations offer the company a hedge against falling oil prices.
Suncor has 1, 500 retail outlets in Canada. Since the economies are recovering, the demand for fuels is also on the rise. The fuel demand is expected to rebound to the 2019 level by the end of the year.
At the moment, Suncor stock is trading at $30 per share, before the pandemic, the prices were at $44. The oil prices on the rise, a barrel stands at $68, which is above the pre-pandemic level. The firm is generating profits, and its operations are expected to increase in the coming months.
Bottom line, Barrick Gold and Suncor are leaders in their respective industries. These stocks are undervalued in an otherwise expensive market. If you have cash, you can consider buying one of these stocks.