Three bargain stocks to invest $3,000
In the current market scenario, some stocks have fallen significantly in the second half, but they are promising for 2026.
Dividend stocks are trading at a bargain
Since the whole interest rate hike story started in April 2022, telecom stocks have been in a downtrend. It’s because they took on huge debt to build the 5G infrastructure. The lead time for investments to deliver the desired return (ROI) has increased. Behind this lies a regulatory change that opened up network infrastructure to competitors, diluting ROI and forcing major telecoms to reduce capital expenditure, cut costs and sell non-core assets to reduce debt.
Among the three largest Canadian telecom companies, Telus (TSX:T) is in a good spot. It has adapted to this change and is increasing its revenue on competing networks. Management has slowed dividend growth from 7-10% to 3-8% as this shifts cash flow towards debt reduction.
Telus has reduced its dividend payout ratio to 75%, within the target range of 60-75%. This shows that it can maintain dividends and even accelerate dividend growth after lowering the leverage ratio from 3.5% to the target range of 2.2%-2.7%.
Now is a good time to buy the stock as it is trading near its 52-week low. The lower share price has pushed the dividend yield up to 8.9%, making it a good buy.
Growth stocks trading at a bargain
Topicus.com
Among the growth stocks is Topicus.com (TSXV:TOI) is trading at a bargain. The stock fell 30% after the sudden departure of the parent company’s founder and CEO, Constellation software. However, there are no major changes in the management of Topicus.
Still, the stock fell as the two biggest acquisitions this year of Asseco Poland and Cipal Schaubroeck increased debt. As the company amortizes intangible assets from its acquisitions, it has reduced its earnings per share (EPS). The high debt and lower earnings per share will normalize in 2026 and beyond, as they did after the Topicus.com acquisition in 2021.
Cash flow could increase in the first quarter as most software maintenance bills mature. The new cash inflow could be used to reduce debt and make more acquisitions, which would increase free cash flow and company value. Topicus.com is currently a cyclical stock that can grow your money by 40-60% during growth periods and lose this value during a recession.
This is a good time to buy the dip and reserve your spot for the next growth cycle.
Air Canada shares
Air Canada (TSX:AC) Shares fell 20% in the second half as seasonal weakness, labor disputes and a slowdown in cross-border travel impacted costs. Looking past these headwinds, the airline has reduced debt and increased free cash flow to a level where it could remain profitable even when travel demand is low. The aviation space is seeing an increase in capacity. Many airlines have placed significant aircraft orders, causing a shortage of aircraft.
As cross-border travel declines, Air Canada is shifting aircraft capacity to other busy routes. With labor issues resolved and leisure travel picking up, the airline stock could see a 20% rise to $22 in January 2026, or a summer rally to $25 in July 2026. The current trading price of $18 is a good starting point to take advantage of the seasonal rally and sell the upside.
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