Thursday, December 3, 2015

3 Undervalued Stocks to Buy Today | The Motley Fool Canada

3 Undervalued Stocks to Buy Today | The Motley Fool Canada: "IGM Financial Inc. (TSX:IGM) is one of the largest personal financial services companies in Canada with over $130 billion in assets under management.

At current levels, its stock trades at just 11.9 times fiscal 2015’s estimated earnings per share of $3.19 and only 11.7 times fiscal 2016’s estimated earnings per share of $3.26, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 14.9 and its industry average multiple of 40.7.

I think IGM’s stock could consistently trade at a fair multiple of at least 14, which would place its shares upwards of $45 by the conclusion of fiscal 2016, representing upside of more than 18% from today’s levels.

Also, the company pays a quarterly dividend of $0.5625 per share, or $2.25 per share annually, giving its stock a 5.9% yield."



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