- Value stocks refer to those which are believed to be priced below their actual value.
- These are expected to eventually rise and match their underlying value when the market rebounds or turns favourable.
- A Canadian company is set to acquire Firehouse Restaurants Group Inc to complement its quick-service restaurants business.
Value stocks refer to those which are believed to be priced below their actual value. These are expected to eventually rise and match their underlying value when the market rebounds or turns favourable.
Since many investors seek out healthy value stock options, let us discuss three TSX-listed value stocks that saw notable performance in 2021.
1. Fortis Inc (TSX: FTS)
Fortis Inc, a Canadian utility provider that owns and manages transmission and distribution assets, reported net earnings of C$ 295 million in the third quarter of fiscal 2021.
On a year-to-date (YTD) basis, its net earnings rose by C$ 25 million to C$ 903 million in the latest quarter from the same quarter a year ago.
The Newfoundland and Labrador-based utility provider is scheduled to pay a quarterly dividend of C$ 0.535 apiece on March 1 next year.
FTS stock expanded by nearly three per cent in the last six months. The utility stock also soared by roughly 12 per cent YTD.
Fortis shares closed at C$ 57.98 apiece on Friday, December 10, slightly up from the previous close.
2. Restaurant Brands International Inc (TSX: QSR)
Restaurant Brands International Inc, popular as RBI, generated total revenues of US$ 1.49 billion in Q3 FY2021, up from US$ 1.33 billion in the same quarter a year ago. Its third-quarter net income amounted to US$ 328 million this year, up from US$ 223 billion a year ago.
The Toronto-based restaurant company is expected to deliver a quarterly dividend of US$ 0.53 apiece on January 5, 2022.
Image source: © 2021 Kalkine Media
Data source: Restaurant Brands International Inc
RBI’s scrip rose by over three per cent in the last one week and returned about six per cent this month.
On December 10, the restaurant stock closed at C$ 75.69 apiece.
RBI recently said that it is set to acquire Firehouse Restaurants Group Inc to complement its quick-service restaurants business. This acquisition transaction involves an all-cash amount of US$ 1 billion.
3. Dundee Precious Metals Inc (TSX: DPM)
Dundee Precious Metals Inc posted a revenue of US$ 162.3 million in the third quarter of fiscal 2021, up from US$ 156 million in Q3 2020.
Its adjusted net earnings stood at US$ 52.5 million in the latest quarter, which was up from US$ 51.6 million in Q3 FY2020. It also posted a free cash flow of US$ 68.5 million in Q3 FY2021, as compared to US$ 61.8 million a year ago.
The precious metals miner is expected to dole out a quarterly dividend of US$ 0.03 apiece on January 17, 2022.
DPM stock hit a day high of C$ 7.46 and closed at C$ 7.37 apiece on December 10. It clocked a 52-week high of C$ 9.95 on January 5, 2021.
Some market experts believe that value investing can help people earn notable gains in the long run considering that investment strategies are rightly implemented. However, one other thing to mind is the quality of investment to avoid losses.