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Contrarian investors seek out quality stocks that have fallen out of favour with the market but have sound core businesses that should recover. Buying undervalued stocks takes courage and requires patience. Cheap stocks often get cheaper before the bounce. However, the strategy can also deliver attractive long-term gains.
TD Bank
TD Bank (TSX:TD) trades near $80 per share at the time of writing compared to $108 in early 2022. The stock was as low as $74 in June but has picked up a bit of tailwind in the past two months as bargain hunters started to buy the stock.
TD’s operations in the United States are the core source of the pain over the last year. American regulators are investigating TD for not having adequate systems in place to identify and prevent money laundering. Media coverage on the issue has ramped up in recent months, and TD has booked more than US$3 billion in provisions for potential…
