TFSA investors: 3 cheap TSX stocks to buy today

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the S&P/TSX Composite Index was up 43 points in the early afternoon of April 18. However, most sectors were in the red midway through the trading day. Investors looking for value in their Tax-Free Savings Account (TFSA) still have attractive options in the second half of April. Back in February, I reviewed two cheap TSX stocks that deserved your attention. Today I want to look at three stocks that are perfect for your TFSA.

Why this under-the-radar equity is perfect for your TFSA

Richelieu Hardware (TSX:RCH) is the first undervalued TSX stock I would target in a TFSA right now. This Montreal company manufactures, imports and distributes specialized hardware and complementary products in North America. Richelieu shares have fallen 14% since the start of the year. This pushed the stock into negative territory year over year.

This company published its results for the first quarter of 2022 on April 7. Total sales increased 29% over the previous year to $384 million. Meanwhile, net income was reported at $30.2 million, or $0.53 per diluted share, up 43% from the first quarter of 2021. Richelieu strengthened its position with three more U.S. acquisitions promising.

Shares of this cheap TSX stock have a favorable price/earnings (P/E) ratio of 14 at the time of this writing. It also offers a quarterly dividend of $0.13 per share. This represents a modest return of 1.3%.

This cheap TSX stock is also a reliable profit machine

Last month, I looked at some of the best Canadian bank stocks to grab after the first quarter earnings season. Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is the fifth largest of the Big Six Canadian banks. This TSX stock has untied 3.4% so far in 2022. The financial sector has been in turmoil after the recent rate hike. TFSA investors should be eager to grab the best bank stocks on the downside.

The bank unveiled its first batch of 2022 results on February 25. It reported adjusted net income of $1.89 billion, or $4.08 per diluted share, up 15% and 14%, respectively, from a year earlier. CIBC has achieved very solid growth in its core business lines. Rate hikes have raised investor concerns, but this environment should also boost profit margins for CIBC and its peers.

This TSX stock last had an attractive price-earnings ratio of 10. Its shares last had an RSI of 23, putting CIBC in technical oversold territory. TFSA investors can also count on its quarterly dividend of $1.61 per share, which represents a solid yield of 4.4%.

Another discounted TSX stock to consider for your TFSA right now

TFSA investors may also want to grab stocks with exposure to the Canadian housing market. Rising interest rates have also raised concerns in this sector. Fair Trade Group (TSX:EQB) is one of Canada’s leading alternative lenders. Shares of this TSX stock have fallen 13% so far this year.

Equitable Group posted very strong earnings in 2021. It generated total earnings of $292 million, or $8.36 per diluted share, up 31% and 29%, respectively, from 2020. During that Meanwhile, single-family conventional mortgages jumped 30% to $14.4 billion. . This TSX stock has a very attractive P/E ratio of 7.4. It has an RSI of 26, which also puts it in oversold levels. Equitable Group also offers a quarterly dividend of $0.28 per share, representing a yield of 1.8%.

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