The stock market is continuing on its bull run, and for bargain hunters, it may seem like there aren’t many good deals out there. However, there a few TSX stocks that investors shouldn’t overlook and that could be compelling buys right now, including these two.
Kirkland Lake
Kirkland Lake Gold (TSX:KL)(NYSE:KL) was a hot buy earlier this year when investors were gloomy on the outlook of the economy. Concerns of a prolonged recession had many people buying up gold and gold stocks, with Kirkland Lake reaching a peak price of $76.43 in early August. But with multiple vaccines for COVID-19 looking to be available in the coming months, there’s a lot more optimism in the air, and that’s left people ditching gold and buying up growth stocks and other investments that are likely going to rise in value once things are back to normal.
Today, Kirkland Lake stock is trading at $54 — which is around its five-month low. But with COVID-19 cases spiking around the world, this gold stock could surge in value again, especially since even if vaccines are approved, it could be months before they’re available to the public, and it still may not be until late next year that the economy’s anywhere close to being back to normal. In the meantime, if concerns surrounding the pandemic or economy rise, investors could once again flock to gold stocks like Kirkland Lake.
At around US$1,900/oz, the price of gold is still near record highs and Kirkland Lake is likely to continue benefitting from that. In its most recent quarter, sales of US$633 million were up 66% year over year and profits of US$202 million grew by 14%. Today, Kirkland Lake stock trades at a forward price-to-earnings (P/E) multiple of just nine, and it’s down 6% year to date. Investors can also earn a dividend yield of 1.8% from buying shares of the company today.