The S&P 500 index remains near its multi-year highs, yet many individual stocks have fallen 10 to 20%. Some have taken even heavier losses. Are there bargains around, even as the bull market remains near its apex?
Perhaps there are.
In the energy sector, blue-chip Canadian companies like Suncor (SU) and TransCanada (TRP) trade near multi-year lows. Energy is cyclical, and will rise again - this time is not different.
REITs is another beaten-down sector - companies like W.P. Carey (WPC) and Chambers Street Properties (CSG) trade at attractive valuations.
Corporate restructuring remains in full swing, and some bargains may be found among spin-offs. Spun-off companies can become cheap if investors who own the "parents" do not want the "children" - because they are in a different industry (a small division, unrelated to the main business, that everyone previously ignored), of a much smaller size, or have a different corporate structure (REIT, MLP).
What if a spin-off is a part of a beaten-down sector, such as energy? A bargain can be even more pronounced.