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Highlights
- The US Federal Reserve recently announced that it had hiked the interest rates by 0.5 per cent.
- Investors could remain sceptical in Canada as the Bank of Canada had also raised the interest rates last month.
- TSX has a variety of stocks to offer and investors must research before investing.
The equities markets have remained volatile this year. It is expected that the market could dip further as the US Federal Reserve recently announced that it had hiked the interest rates by 0.5 per cent, the most significant hike in over two decades.
In Canada, investors could remain sceptical as the Bank of Canada had also raised the interest rates last month and had indicated that the central bank could further increase the rates to fight rising inflation.
Also Read: Lightweights in 2022: 5 junior Canadian stocks to buy in May
If you are a long-term investor and you are in search of stocks, you may consider exploring the following stocks and find out if they are worth buying:
Canadian Tire Corporation Limited (TSX:CTC.A)
This year, markets have remained volatile, and Canadian Tire Corporation's stock has declined rapidly after a stellar run in 2021.
On May 5, the CTC.A stock fell about 0.2 per cent and closed at C$ 173.78 per share. The Canadian Tire Corporation stock appears to be undervalued compared to the 52-week high of C$ 213.85 apiece.
Despite the decline in the share prices, Canadian Tire Corporation looks like a stock for the long-term due to its strong fundamentals. In February, the company released its fourth-quarter results and said its full-year diluted earnings per share (EPS) reached a record level at C$ 18.38, up by 49.3 per cent year-over-year (YoY).
Meanwhile, the company revealed a C$ 3.4 billion investment strategy for long-term growth. Canadian Tire Corporation is looking to achieve consolidated comparable sales growth of over four per cent averaged annually by 2025.
Also, by 2025, the company hopes to have a diluted EPS of more than C$ 26, double its diluted IPS of C$ 12.58 in 2019.
As per EODHD/Others data, the Relative Strength Index (RSI) value of the Canadian Tire stock was 36.3, slightly above the oversold condition. Some experts suggest that the stock is being oversold if the RSI value is less than 30.
Pet Valu Holdings Ltd. (TSX:PET)
The maker of pet products started trading on the Toronto Stock Exchange last year. Since then, the stock has often gained investors' attention and even started distributing dividends.
Pet Valu distributed a quarterly dividend of C$ 0.06 per unit, and its dividend yield is about 0.8 per cent.
The company is expanding rapidly, and it now operates 700 stores in Canada. Also, it recently announced the acquisition of Chico, which is the largest pet specialty franchisor in Quebec.
In Q4 2021, Pet Valu's revenue was C$ 223.1 million, up by 9.7 per cent YoY. Meanwhile, the adjusted EBITDA jumped 9.7 per cent YoY to C$ 53.3 million.
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Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
