TSX value stocks to watch in September: FTS, TFII, GFL, GSY, BNS & CGX

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 TSX value stocks to watch in September: FTS, TFII, GFL, GSY, BNS & CGX
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  • Highlights
  • The TSX Composite Index was down by over six per cent so far in 2022
  • TFI International stock grew by over 35 per cent quarter-to-date
  • Cineplex said that its theatre attendance grew by a substantial 866.2 per cent to 11.1 million in Q2 2022 to 1.1 million Q2 2021

Canadians with a focus on value investing can explore stocks like Fortis (TSX: FTS), TFI International (TSX: TFII), Bank of Nova Scotia (TSX: BNS) etc., to try and get long-term returns.

The global equity markets, including Canada, have been seeing wide fluctuations as the expected policy rate measure to tackle rising inflation continues to take a toll on investors’ sentiments.

The TSX Composite Index was down by over six per cent in 2022. However, when talking about the value approach, investors can target value stocks to capitalize on the significant value in the long horizon.

Before investing, stock market enthusiasts must know that there are risks associated as the market is volatile.

On that note, let us briefly discuss the following TSX value stocks picked by Kalkine Media® that investors can explore.

1.     Fortis Inc (TSX: FTS)

Fortis said its net income amounted to C$ 284 million or C$ 0.59 per share in Q2 2022, relatively high from C$ 253 million or C$ 0.54 per share recorded in the second quarter a year ago. The utility giant stated that this increase in earnings was supported by base rate growth and high profit from the energy infrastructure division. Fortis will deliver a quarterly dividend of C$ 0.535 on September 1.

Fortis stock swelled by over five per cent in nine months. The FTS stock was up by over seven per cent from a 52-week low of C$ 54.73 (on October 29, 2021). On the other side, this utility stock was down by nearly 10 per cent from a 52-week high of C$ 65.26 (clocked on May 25 this year).

As per Refinitiv findings, the FTS stock saw a Relative Strength Index (RSI) value of 38.31 (marginally up from the oversold mark of 30), backed by a trading volume of about 1.3 million on August 26.

2.     TFI International Inc (TSX: TFII)

TFI International saw its consolidated revenue reach US$ 2.42 billion in Q2 FY2022, an increase from US$ 1.83 billion in the prior year’s second quarter. The large-cap transport company said its revenue before fuel surcharge amounted to US$ 1.98 billion in the latest quarter, high from US$ 1.65 billion posted in Q2 2021. Net profit, however, was down at US$ 276.8 million in the second quarter this year compared to US$ 411.8 million (including a bargain purchase gain of $283.6 million) in Q2 2022.

TFI International stock grew by over 35 per cent quarter-to-date (QTD). The TFII stock appears to be gaining momentum with an RSI value of 70.22, representing an overbought market condition, on August 26.

TSX value stocks to buy right now: FTS, TFII, GFL, GSY, BNS and CGX©Kalkine Media®; ©Garis Studio via Canva.com

3.     GFL Environmental Inc (TSX: GFL)

GFL Environmental posted C$ 1.7 billion in revenue in the second quarter of 2022, reflecting a double-digit increase of 40.4 per cent year-over-year (YoY). The waste management company disclosed that its environmental service revenue reached C$ 324.3 million in the latest quarter, which included organic growth of 21.6 per cent stemming from strength in industrial collection and processing revenue and helped by high used motor oil selling prices. GFL expects its revenue to range between C$ 6.42 billion and C$ 6.47 billion in fiscal 2022, higher than the previous guidance range of C$ 6 billion to C$ 6.1 billion.

GFL Environmental stock jumped by nearly five per cent in one month. As per Refinitiv data, the GFL stock had an RSI value of 52.62 on August 26, indicating a moderate market condition.

4.     goeasy Ltd (TSX: GSY)

goeasy said that it experienced record loan originations of C$ 628 million in the second quarter of 2022, representing a 66 per cent surge from C$ 379 million posted in Q2 2021. The credit service company said that this increase came as its volume of applications increased by 51 per cent YoY in the latest quarter, which led to loan originations across goeasy products and acquisition channels.

goeasy anticipates its total revenue to hit a guidance range of C$ 1 billion to C$ 1.04 billion this fiscal year. The financial service provider expects its total revenue to reach between C$ 1.3 billion to C$ 1.38 billion in fiscal 2024. As for its stock performance, goeasy stock shot up by about 15 per cent in one month. According to Refinitiv information, the GSY stock recorded an RSI value of 48.41 on August 26.

5.     Bank of Nova Scotia (TSX: BNS)

Bank of Nova Scotia stated that its earnings per share (EPS) increased to C$ 2.1 in the third quarter of FY2022 from C$ 2 per share recorded in Q3 2021. The lender posted return on equity (ROE) of 15.3 per cent in the third quarter this year compared to 15 per cent in Q3 2021. Scotiabank also announced a quarterly dividend of C$ 1.03 on October 27 (ex-dividend on October 3).

Scotiabank stock declined by over six per cent in a year. As per Refinitiv data, the BNS stock had an RSI value of 35.45 (slightly up from the oversold territory of 30) on August 26, with approximately 2.9 million BNS shares switching hands.

6.     Cineplex Inc (TSX: CGX)

Cineplex reported C$ 349.9 million in total revenues in Q2 2022, denoting a significant surge of 438.9 per cent from Q2 2021. The media company said that its theatre attendance grew by a substantial 866.2 per cent to 11.1 million in the latest quarter relative to 1.1 million a year ago. Net income also improved to C$ 349.9 million in the second quarter this year compared to a net loss of C$ 103.7 million in Q2 2021.

Cineplex stock, however, was down by nearly 30 per cent in 12 months. On August 26, this media stock clocked a new 52-week low of C$ 9.18. As per Refinitiv, the CGX stock appears to be oversold on August 26, with an RSI value of 26.48 (below the 30 levels), signalling a bearish trend.

Bottom line

The value approach to investing could help investors capture long-term quality gains amid the current market volatility. The TSX value stocks mentioned here are some options one can explore while bracing the ongoing market condition. Also, all these value stocks, except for Cineplex) doles out the dividend.

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.

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