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Highlights
- Investors on the lookout for gains amid the uncertain market situation led by the Omicron surge, interest rate hikes, and inflationary pressure may look at quality value stocks.
- Quality value stocks can offer investors returns when the market rises back, and business dynamics turn favorable.
- An energy scrip mentioned here galloped by roughly 187 per cent in the past one year.
Investors on the lookout for gains amid the uncertain market situation induced by the Omicron surge, interest rate hikes, and inflationary pressure may look at quality value stocks. Quality value stocks can offer investors returns when the market rises back, and business dynamics turn favorable.
On that note, let us look at the two TSX-listed value stocks.
1. Magna International Inc (TSX:MG)
Magna International saw a year-over-year (YoY) decrease of 13 per cent in its sales to US$ 7.9 billion (C$ 10 billion) in the third quarter of FY2021, which was mainly due to a 12 per cent decline in global light vehicle production. The Aurora, Ontario-based electronic automaker reported a net income of US$ 11 million (C$ 13.9 million) in the latest quarter compared to US$ 405 million (C$ 512 million) a year ago.
The $ 30 billion market cap company saw its stock close at C$ 101.20 apiece on Wednesday, January 27, nearly 20 per cent below its 52-week high of C$ 126 reached on June 7, 2021. The automotive stock swelled by about eight per cent in the last one year.
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Also read: Why is Exela Technologies’ stock surging? NASDAQ:XELA jumps 16%
2. Birchcliff Energy Ltd (TSX:BIR)
Birchcliff Energy recorded a YoY rise in its quarterly average production to 84,924 barrels of oil equivalent per day in the third quarter of fiscal 2021. The energy producer generated a net income of C$ 138.4 million in the latest quarter compared to a loss of C$ 17.7 million a year ago.
Stocks of Birchcliff closed at C$ 5.96 apiece on Wednesday, approximately 24 per cent below its 52-week high of C$ 7.85 apiece achieved on November 18, 2021. The energy scrip galloped by roughly 187 per cent in the past one year.
Bottom line
The TSX benchmark index is down by nearly three per cent in 2022, but value stocks like Magna and Birchcliff may fetch profit, considering their growth potential and operations. However, investors should closely eye the financial performance and fundamentals to mitigate probable losses.
Also read: Petrus (PRQ) & GoldQuest (GQC): 2 Canadian penny stocks to buy
