7 Canadian stocks to buy at discount amid Omicron selloff

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7 Canadian stocks to buy at discount amid Omicron selloff

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 7 Canadian stocks to buy at discount amid Omicron selloff
Image source: © 2021 Kalkine Media Inc 

Highlights 

  • The spread of the omicron variant has led to a massive selloff in stock markets worldwide amid rising investor concerns.
  • It is also believed by some experts that the available vaccines may be less effective for this new variant, which has further shaken investors’ confidence.
  • A retail company mentioned here hiked its annual dividend by 10.6 per cent.

The spread of the omicron variant has led to a massive selloff in stock markets worldwide amid rising investor concerns.

It is also believed by some experts that the available vaccines may be less effective for this new variant, which has further shaken investors’ confidence.

However, stock markets are known to eventually rebound from declines. Some investors use this strategy and hold on to their portfolios or even add on fundamentally sound stocks in the hopes of reaping returns when the market rebounds.

Also read: How the omicron variant can impact Canadian stock markets

Keeping this in mind, let us explore seven TSX-listed stocks that are currently low-priced due to the omicron-triggered selloff.

7 Canadian stocks to buy at discount amid Omicron selloff

Image source: © 2021 Kalkine Media Inc 

1.     Canadian Tire Corporation Limited (TSX:CTC)

Canadian Tire Corporation saw its stock plunge by more than five per cent on Monday, December 6, closing at C$ 313.05 apiece.

The Toronto-headquartered company reported a year-over-year (YoY) rise of 4.3 per cent in its consolidated retail sales in the third quarter of fiscal 2021. After excluding the petroleum, its total sales growth was 1.6 per cent YoY in the latest quarter.

Although, its consolidated revenue amounted to C$ 73.3 million in Q3 FY2021, a YoY drop of 1.8 per cent, the company hiked its annual dividend by 10.6 per cent to C$ 5.20 per share. When excluding petroleum, its revenue declined by 5.6 per cent.

Canadian Tire Corporation is scheduled to dole out a quarterly dividend C$ 1.30 apiece on March 1, 2022.

2. Wesdome Gold Mines Ltd (TSX:WDO)

Canadian gold producer Wesdome Gold Mines Ltd saw its stock close at C$ 11 apiece on December 6, down by more than three per cent. Its stock clocked a 52-week high of C$ 13.28 on November 19, which reflects that its current closing price fell by almost 19 per cent.

WDO stock tumbled by roughly 11 per cent in the last one week. However, it jumped by more than 37 per cent in the past nine months.

The firm’s top line surged by 23 per cent YoY to C$ 67.5 million in the third quarter of FY2021. Its operating cash flow rose by 33 per cent YoY to C$ 33.9 million in the latest quarter.

Its bottom line stood at C$ 15.3 million in Q3 FY2021, up from C$ 14.6 million in Q3 FY2020.

Wesdome also produced 29,344 ounces of gold during the third quarter of FY2021, which indicated a YoY increase of 47 per cent.

3. Andlauer Healthcare Group Inc (TSX:AND)

Andlauer Healthcare Group Inc, which provides specialized transportation and healthcare logistical solutions, saw its stock close at C$ 48.02 apiece on December 6, down by nearly one per cent.

While AND stock slipped by nearly three per cent quarter-to-date (QTD), it grew by almost 33 per cent in nine months.

The Toronto-headquartered company posted a rise of 37.5 per cent YoY in its revenue of C$ 104.2 million in Q3 FY2021.

Its operating income surged by 27.6 per cent YoY to C$ 16.8 million in the latest quarter. Its net income and comprehensive income notably increased by 41.8 per cent to C$ 12.2 million in Q3 FY2021.

4. Neighbourly Pharmacy Inc (TSX:NBLY)

Neighbourly Pharmacy Inc, a Canadian  owner and operator of pharmacies, decreased by nearly two per cent and closed at C$ 33.65 apiece on December 6.

The healthcare scrip dipped by nearly five per cent in the last one week. It has, however, climbed by over 28 per cent in six months.

The company added 51 pharmacies to its portfolio, which derived a revenue growth of 54 per cent YoY to C$ 90.7 million in the second quarter of fiscal 2022.

Neighbourly Pharmacy is expected to pay a quarterly dividend of C$ 0.045 apiece on December 21.

5. BMTC Group Inc (TSX:GBT)

BMTC Group, a Montreal-based retailer, saw its stock close at C$ 15.245 apiece on December 6, down by less than one per cent.

The retail stock sipped by more than six per cent from its 52-week high of C4 16.28 (July 16, 2021).

Also read: 3 Canadian penny stocks to buy before Christmas holidays

BMTC reported a YoY surge of 48 per cent in its revenue to C$ 408 million in the first semester of fiscal 2021. Its net income also expanded to C$ 39.16 million in the latest semester compared to C$ 7.15 million in the same period a year ago.

6. Thomson Reuters Corporation (TSX:TRI)

Thomson Reuters Corporation, a Toronto-based business service firm, saw its stock close at C$ 151.95 apiece on December 6, down by less than a per cent.

Its stock tumbled by roughly three per cent in the last one week.

Thomson Reuters saw a YoY increase of six per cent in its top line of US$ 1.5 billion in Q3 FY2021. It is scheduled to pay a dividend of US$ 0.405 apiece on December 15.

7. Triple Flag Precious Metals Corp (TSX:TFPM)

Triple Flag Precious Metals Corp saw its stock close at C$ 13.92 apiece on December 6, down by more than one per cent.

The metal stock dropped by more than three per cent in the past one week and plunged by more than 11 per cent in the last six months.

The precious metal company posted a YoY rise of 52  per cent in its revenue to US$ 37.1 million in Q3 FY2021. Its adjusted EBITDA also grew by 43 per cent to US$ 29.5 million in the latest quarter.

The company will deliver a quarterly dividend of US$ 0.048 apiece on December 15, 2021.

Also read: 4 Canadian stocks that returned over 500% in 2021

Bottom line

Often, investors trade in their stocks during unhealthy market circumstances, triggering a selloff. This tendency generally drives down the prices of even fundamentally sound stocks, which, in turn, can draw in investors looking for discounted robust stocks.

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