Market Correction: 3 Cheap Stocks to Add to Your TFSA

The S&P/TSX Composite Index shed 73 points to close out the previous week on June 17. Canadian investors were thrust into a bear market after the TSX plunged over 500 points to open the week on Monday, June 13. The market fell sharply in the late winter of 2020, as the COVID-19 pandemic swept across the developed world. Investors who jumped on discounts during the 2020 pullback were richly rewarded in the months that followed. That said, markets also benefitted from friendly central banks that dedicated trillions in quantitative aid.

Today, I want to look at three cheap stocks that are worth snatching up in your Tax-Free Savings Account (TFSA) in the second half of June.

I’m still looking to add this underrated bank stock in this market correction

Canadian investors should be familiar with the Big Six Canadian banks. These profit machines are favourites due to their dependability. Canadian Western Bank (TSX:CWB) is a regional bank that is based in Edmonton. It does not boast the size and reach of some of the Big Six banks, but it has proven very dependable in recent years. Shares of this cheap stock have dropped 28% in 2022 as of close on June 17.

This bank released its first-quarter 2022 results on May 27. Total revenues increased 5% year over year to $259 million. Meanwhile, branch-raised deposits and loans posted growth of 10% and 9%, respectively, compared to the first quarter of 2021. Its diluted earnings per share (EPS) were largely flat in the year-over-year period.

Shares of this cheap stock possess a very favourable price-to-earnings (P/E) ratio of 6.9. TFSA investors can also count on its quarterly dividend of $0.31 per share, representing a 4.7% yield. This is a perfect target in a market correction.

Here’s a cheap stock to stash in your TFSA for the long haul

Rogers Communications (TSX:RCI.B)(NYSE:RCI) is a Toronto-based telecommunications giant. Its shares have dropped 3.1% in 2022 as of close on June 17. The stock is down 8.3% from the previous year. Telecom is a dependable sector to target in a market correction.

In Q1 2022, the company delivered total revenue growth of 4% to $3.61 billion. Meanwhile, adjusted EBITDA increased 11% year over year to $1.53 billion. Rogers posted adjusted net income of $462 million, or $0.91 per share — up 17% and 18%, respectively, from the previous year.

This cheap stock last had an attractive P/E ratio of 18. That should pique the interest of TFSA investors. Moreover, it offers a quarterly dividend of $0.50 per share, which represents a 3.3% yield.

Market correction: One more cheap stock to add to your TFSA

Bausch Health (TSX:BHC)(NYSE:BHC) is the third cheap stock I’d look to add to a TFSA in this market correction. This Laval-based company is engaged in the development, manufacture, and marketing of a range of pharmaceutical, medical device, and over the counter (OTC) products. Shares of Bausch have plummeted 72% so far in 2022.

The company released its first-quarter 2022 results on May 10. Total revenues fell in the year-over-year period. However, its earnings are on track for strong growth going forward. This cheap stock last had an RSI of 23, which puts Bausch in technically oversold territory.

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