2 Canadian stocks too cheap to ignore today

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The Canadian stock market has had a tough year so far in 2022, and the volatility doesn’t look like it will stop any time soon. The S&P/TSX Composite Index is down 15.29% from its 52-week high at the time of writing. The Canadian benchmark indicates significant weakness in the Canadian stock market as most Canadian stocks are trading at significant discounts to their latest all-time highs.

Many Canadian stock investors are shedding equities and looking for safe-haven assets to hedge against volatility. However, more sophisticated investors who recognize the slowdown as an opportunity to find undervalued stocks are busy looking for high quality equity securities that are traded at a great price.

Are you an investor belonging to this last category? Here are two TSX stocks that have become too cheap to ignore. Let’s take a closer look at them to help you determine if they could find a place in your investment portfolio.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is a Canadian financial institution with a market capitalization of $90.86 billion. Based in Toronto, Scotiabank is one of the Big Six Canadian banks. It enjoys greater exposure to emerging markets in its international operations compared to its peers.

The bank has significant long-term growth potential through its activities in emerging markets. It also has strong domestic operations that generate safe and stable cash flows.

Bank of Nova Scotia is trading at $75.44 per share at the time of writing and boasting a hefty dividend yield of 5.46%. Scotiabank’s stock is down 20.58% from its 52-week high, reflecting a deep discount.

The lower valuation has also inflated its dividend yields to attractive levels. Between the inflated dividend yield and the discounted stock price, Scotiabank shares could be a great asset to consider for investors looking for value.

Wheaton Precious Metals (TSX:WPM)(NYSE:WPM) is a precious metals streaming company with a market capitalization of $20.42 billion. Based in Vancouver, the company does not have a mining operation itself.

Instead, it entered into agreements with 23 operating mines to buy gold and silver at low prices. The company pays these mines a predetermined amount to help them develop the mines, making its business less capital intensive and more profitable.

Shares of Wheaton Precious Metals are trading at $45.22 per share at the time of writing and offer a dividend yield of 1.70%. Wheaton Precious Metals stock is down nearly 24% from its 52-week high, trading at a steep discount.

WPM stock has a 12-month average consensus price target of $70.60 per share, with a high forecast of $86 per share, presenting significant upside potential. It could be an attractive investment to consider at current levels for investors optimistic about its recovery.

Insane takeaways

A word of warning: the stock market is still quite volatile and the macroeconomic factors contributing to its uncertainty could persist for several weeks or months. The next few weeks could see the value of all the investments you are currently making decline further. Risk-averse investors concerned about short-term returns may want to be wary of investing at this time.

Suppose you have a long investment horizon and you are not worried about what will happen in a few weeks. In this case, finding undervalued investments with the potential to generate substantial long-term returns might be a good way to go in the current environment.

Scotiabank stocks and Wheaton Precious Metals stocks could be excellent assets to consider adding to your portfolio for this purpose.

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