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- Highlights
- Some investors are turning toward value stocks amid market sell-offs and changes in policy rates aimed to quell inflation.
- Value stocks are generally undervalued stocks (compared to their intrinsic value) and can offer deep profits to investors in the future.
- A stock listed here expanded by nearly 13 per cent in a year.
Some investors are turning toward value stocks like Open Text Corporation (TSX:OTEX), Magna International Inc (TSX:MG) and Power Corporation of Canada (TSX:POW) amid market sell-offs and changes in policy rates aimed to quell inflation.
Value stocks are generally undervalued stocks (compared to their intrinsic value) and can offer deep profits to investors in the future when they match their actual value.
On that note, let us discuss these three TSX value stocks.
Open Text Corporation (TSX: OTEX)
Open Text Corporation partnered with MUFG Global Securities Lending Solutions Group (GSLS) on April 5 to enhance digital experience and customize reporting capabilities for business clients.
The software company reported a year-over-year (YoY) growth of 2.5 per cent to US$ 876.8 million in total revenue in Q2 2022.
OTEX stock plummeted by almost 15 per cent in a year.
Also read: CNQ and TRP: TSX oil stocks to watch as IEA drops demand projection?
Magna International Inc (TSX: MG)
Magna International opened a new facility in Slovakia on April 21 to produce ADAS solutions and EV technologies to expand its electrification footprint.
The Canadian EV maker also introduced the LG Magna e-Powertrain plant recently with joint venture partner LG Electronics in Ramos Arizpe, Mexico.
The plant is expected to be complete in 2023 and will manufacture inverters, motors and other sub-assemblies to support General Motors in EV production.
MG scrip lost nearly 36 per cent in 12 months.
Power Corporation of Canada (TSX: POW)
Power Corporation of Canada has a controlling stake in two Canadian companies, i.e., Great-West Lifeco (TSX:GWO) and IGM Financial (TSX:IGM).
Additionally, it also holds interest in a holding company, Pargesa.
POW stock expanded by roughly 12 per cent in a year.
Bottomline
Open Text, Magna International and Power Corporation are large-cap companies and are known to be steady in dividend payouts. All three of them extend exposure to the technology, automobile and financial sectors, which can make them healthy options for value play amid market sell-offs and prevailing market conditions.
Also read: URC, EU and ISO: Why did these 3 TSXV uranium stocks surge higher?
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.
