Unemployment allegations have soared in the United States in Canada last week. However, the Trump administration said there were indications that the COVID-19 epidemic was stabilizing. President Trump reiterated his intention to “open things up” after the period up to April 30 has ended. If the United States “opens up”, pressure will be put on Canada to follow suit.
Inexpensive stocks are always available
Meanwhile, the market has rebounded somewhat, but there are still many promising stocks that have plunged into oversold territory. Today, I want to look at two stocks that investors may want to consider in early April. Let’s dive in.
Celestica (TSX: CLS) (NYSE: CLS) is a Toronto-based company that provides design, manufacturing, hardware platform and supply chain solutions in Canada and abroad. Its shares have fallen 45% month-to-month since the afternoon of April 6. This inexpensive title is down 58% year over year.
The company released its fourth quarter and 2019 results on January 29. IFRS revenues reached $ 6.6 billion, compared to $ 5.8 billion the previous year. Adjusted net income increased to $ 149.8 million from $ 71.5 million in 2018. Celestica provided a COVID-19 update on March 17. It has chosen to withdraw its financial forecasts for Q1 2020. The orders for “on-site refuge” executed in the bay region and the closure of certain businesses in Malaysia should have a negative impact on Celestica.
Celestica’s shares had a very favorable price / earnings (P / E) ratio of 6.4 for the last time and a price / book value (P / B) of 0.3. The last stock had an RSI of 35, placing it just outside the oversold levels. Celestica reports a correct balance.
A stock on the rebound today
Spin Master (TSX: TOY) is a children’s entertainment company that creates, designs, manufactures and markets various toys, games, entertainment products and properties around the world. Spin Master shares were up 7.15% at the time of writing. However, the stock had fallen more than 50% month-over-month. It is still considered cheap stock today.
In the fourth quarter of 2019, the company reported revenue of $ 473 million, up 14.3% from the previous year. Sales of raw products also increased 18.3% to $ 550 million. For the year as a whole, revenues decreased 3.1% to $ 1.63 billion and gross profit decreased 4.1% to $ 785 million. COVID-19 will also have an impact on the sales of Spin Master in the short term as well as on its potential production. China produces around 60% of its goods. This means that Spin Master could still experience some volatility in the spring and summer.
The last action had a favorable P / E ratio of 17 and a P / B value of 1.3. His leap today has propelled his actions out of technically oversold territory. Spin Master has an impeccable balance sheet and promising growth potential. I am optimistic about this still cheap title after the bloodbath in March.
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Crazy contributor Ambrose O’Callaghan has no position on any of the titles mentioned. The Motley Fool owns shares and recommends Spin Master.