5 TSX value stocks to buy in August: TD, MAXR, GSY, DOO & GFL

Highlights

• Canada’s main stock index contracted by approximately eight per cent this year
• The MAXR stock jumped by almost 12 per cent in nine months
• The GSY stock spiked by nearly 17 per cent quarter-to-date

Canadian investors looking to capitalize on the current market inefficiencies can explore quality value stocks like Toronto-Dominion (TSX:TD), Maxar (TSX:MAXR), goeasy (TSX:GSY), BRP (TSX:DOO) and GFL (TSX:GFL).

Canada’s main stock index contracted by approximately eight per cent this year as the macroeconomic tensions continue to pressure investment sentiments worldwide. However, value investors can consider dividend-paying stocks supported by healthy business operations and future prospects to capture long-term gains.

The five TSX value stocks are available at a bargain price and could offer quality returns. So, let us look closely at the financials and stock performance of these TSX stocks shortlisted by Kalkine Media.

1.     Toronto-Dominion Bank (TSX:TD)

Toronto-Dominion announced a definitive agreement to buy US-based financial service provider Cowen (NASDAQ: COWN, COWN: US) on Tuesday, August 2, for a cash consideration of US$ 1.3 billion. The Canadian lender believes that this strategic deal would expedite its US growth plans and enhance its business capabilities if completed.

Toronto-Dominion saw its top-line increase to C$ 11.26 billion in Q2 2022, higher than C$ 10.22 billion in Q2 2021. The C$ 149-billion market cap bank reported a net profit of C$ 3.81 billion in the latest quarter, relatively higher than C$ 3.69 billion in the same quarter a year ago.

The TD stock plunged by roughly 15 per cent year-to-date (YTD). This bank stock was down by about 24 per cent from a 52-week high of C$ 109.08 (February 11). According to Refinitiv data, TD stocks had a Relative Strength Index (RSI) value of 47.31 on August 2, with 7.61 million share-exchanging hands.

2.     Maxar Technologies Inc (TSX:MAXR)

Maxar Technologies is a mid-cap company providing space and geospatial intelligence solutions to commercial customers and governments. Maxar recently announced a quarterly dividend of US$ 0.01 to be paid on September 30.

The space technology company recorded a return on equity (ROE) of approximately 16 per cent. The ROE measures the company’s financial profitability by dividing its net earnings by equity.

The MAXR stock jumped by almost 12 per cent in nine months. As per Refinitiv data, this space technology stock appeared to be on a medium-to-high momentum as MAXR saw an RSI value of 60.53 on August 3.

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3.     goeasy Ltd (TSX:GSY)

goeasy signed a strategic partnership and investment agreement with online car shopping and door delivery platform Canada Drives in late June. The credit service company said that under this agreement, goeasy would acquire a minority equity stake of C$ 40 million in Canada Drives.

The small-cap financial service company doles out a quarterly dividend of C$ 0.91. On the financial front, goeasy posted revenue of C$ 232.14 million in Q1 2022, relatively higher than C$ 170.17 million in the same quarter of the previous year.

The GSY stock spiked by nearly 17 per cent quarter-to-date (QTD). As per Refinitiv information, this financial stock recorded an RSI value of 62.57 on August 2, marginally down from the overbought level of 70.

4.     BRP Inc (TSX:DOO)

The mid-cap vehicles and parts firm, BRP successfully acquired a Great Wall Motor subsidiary to strengthen its knowledge in electric motors, inverter hardware and software. The Canadian automotive firm slightly increased its revenues to C$ 1.809 billion in Q1 2022 relative to C$ 1.808 billion in the same period of 2021.

BRP delivers a quarterly dividend of C$ 0.16. As for its stock performance, the DOO stock zoomed by almost 20 per cent QTD. According to Refinitiv data, BRP stocks held an RSI value of 61.88 on August 2.

5.     GFL Environmental Inc (TSX:GFL)

GFL Environmental is a large-cap company providing various waste management solutions ranging from solid and liquid waste to infrastructure and soil remediation. The industrial company saw its revenue swell by 40.4 per cent year-over-year (YoY) to C$ 1.7 billion in Q2 2022. GFL reported a net profit of C$ 64.3 million in the latest quarter, up from C$ 62.5 million posted in the second quarter last year.

GFL Environmental also revised its revenue forecast range to C$ 6.42 billion and C$ 6.47 billion for fiscal 2022, higher than the previous range of C$ 6 billion and C$ 6.1 billion. This waste management company also disburse a quarterly dividend of US$ 0.012.

The GFL stock climbed nearly eight per cent in the past one month. This waste management scrip fell by almost 34 per cent from a 52-week high of C$ 54.01 (November 4, 2021). As per Refinitiv findings, GFL stocks had an RSI value of 58.24 on August 2.

Bottom line

The TSX stocks mentioned above have recorded increased revenue in their latest quarter and could fetch significant value in the long run considering their current price levels. In addition, these Canadian companies also pay dividends and can offer passive income. Stock market enthusiasts must assess their risk-taking capacity before investing in stocks.

Please note, the above content constitutes a very preliminary observation based on the industry, 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.