3 cheap Canadian stocks to buy in this market correction

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The S&P / TSX Composite Index You lose 253 points on June 22nd. Canadian investors are facing unprecedented challenges this decade. North Americans are grappling with rates of inflation not seen in more than a quarter century. Meanwhile, the top indicators have officially entered a bear market. Today, I want to take a look at three Canadian stocks that appear to be heavily discounted in this market correction. Let’s jump.

And the undervalued energy stock provides a solid return

Altagas (TSX: ALA) is a Calgary-based energy infrastructure company. Shares of this Canadian stock are down 2.5% in 2022 as of the close on June 22nd. Its shares are down 11% in the month-to-month period.

Investors can expect to see this company’s next batch of 2022 results in late July. The energy sector caught fire in 2022 due to high oil and gas prices. In the first quarter of 2022, AltaGas reported pre-tax income of $504 million — up from $473 million the previous year. The company benefited from strong production and 10% EBITDA growth in the utilities segment.

This Canadian stock currently has a price-to-earnings (P/E) ratio of 29. The latest RSI was at 31, which puts AltaGas outside technically oversold territory in this market correction. Even better, it offers a monthly return of $0.265 per share. This represents a very solid 4% return.

Here’s a cheap home inventory to consider this summer

Canada’s real estate sector has enjoyed impressive growth since the global financial crisis of 2007-2008. The housing space was riddled with historically low interest rates and loose monetary policy that ballooned lending and led to a massive rise in valuations. Our crowded real estate space now faces its toughest challenges as the Bank of Canada (BoC) has moved aggressively to raise interest rates to combat high inflation.

main capital (TSX:HCG) is one of the largest alternative lenders in the country. It has thrived due to its very active role in the field of residential and non-residential real estate lending. Shares of this Canadian stock are down 35% so far this year. This represented the bulk of its annual losses.

Despite the near-term pressures, I am not ready to count the Canadian housing market. Migration, poor supply and persistently high demand should establish a solid ground, even in the face of these headwinds. This makes Home Capital an interesting target for the start of the summer season. The stock is also trading outside oversold levels with the RSI at 33.

Another cheap stock which is an approved earning machine

bank 💰 (TSX: TD) (NYSE: TD) Should not require an introduction among fools readers. This Canadian stock is the second largest of the Big Six by market capitalization. TD Bank and its peers enjoyed a very good recovery in 2021. However, these stocks were not able to avoid a market correction. TD Bank stock is down 12% so far in 2022.

This Canadian stock has a favorable P/E ratio of 10. It last had an RSI of 29, which puts the top bank stock in technically oversold territory. TD Bank offers a quarterly dividend of $0.89 per share. This represents a solid 4.1% return. This Canadian super stock deserves to be watched in this market correction.

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