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A proven strategy for equity investors is to buy and hold stocks that trade at a cheap valuation. Here, you need to identify a portfolio of stocks that trade below their intrinsic value to benefit from outsized gains when market sentiment improves. Here are two such cheap TSX stocks I’d buy in June 2024.
Air Canada stock
Valued at $6.16 billion by market cap, Air Canada (TSX:AC) is the largest airline and provider of scheduled passenger services in the Canadian market. While Air Canada is on track to report record revenue in 2024, the stock sits 67% below all-time highs.
One key reason for its underperformance is the company’s sizeable debt balance, which ballooned amid the COVID-19 pandemic. Moreover, rising interest rates have driven interest payments higher for Air Canada, resulting in narrower profit margins. For instance, its net debt at the end of 2019 stood at $2.37 billion, while it…
