Discover 3 TSX Value Stocks to Buy Amid Market Downturn

Investors are often tempted to retreat when stock markets begin to decline, but downturns can also present attractive buying opportunities. Currently, several companies on the Toronto Stock Exchange (TSX) are trading at significant discounts, providing long-term investors with the chance to acquire quality stocks that offer appealing dividends. Here, we explore three notable value stocks: Suncor Energy (TSX:SU), Bank of Nova Scotia (TSX:BNS), and BCE (TSX:BCE).

Suncor Energy: A Resilient Player

After a prolonged period of underperformance, Suncor Energy seems to be presenting a compelling investment case. Despite oil prices remaining robust by historical standards, the stock trades at just 11 times its forward earnings. The market’s pessimism appears linked to previous operational challenges, yet recent results indicate a turnaround. In its first-quarter (Q1) 2025 earnings, Suncor reported adjusted funds from operations of $3 billion, a slight decrease from $3.2 billion the previous year.

Throughout the same period, Suncor returned $15 billion to shareholders and achieved its highest first-quarter upstream production in company history. The company is focusing on increasing refinery output and enhancing safety performance, while its integrated asset operations provide a buffer against fluctuations in oil prices. With a dividend yield of 4.3% and an active buyback program, Suncor positions itself as a strong contender in the energy sector.

Bank of Nova Scotia: Positioned for Recovery

Another value opportunity exists in Bank of Nova Scotia. The bank’s stock remains undervalued, trading significantly below pre-pandemic levels. Recent earnings reports revealed a net income of $2.03 billion for Q2 2025, down from $2.09 billion a year prior. Despite this dip, the bank remains on solid footing, particularly as it focuses on growth in Latin America, with a keen interest in the Mexican market.

Trading at 16 times earnings, Bank of Nova Scotia offers a dividend yield of 5.7%, a rarity among Canada’s major banks. Its long-standing commitment to raising dividends provides investors with a reliable income stream, even during challenging economic conditions. Although short-term growth may be sluggish, the bank’s strategic investments and robust profitability make it an appealing choice for patient investors.

BCE: A Telecom Giant Adapting to Change

Finally, BCE, Canada’s telecommunications leader, has faced notable challenges, with its stock price down nearly 55% from its 2022 highs. Rising interest rates have pressured its capital-intensive business model, yet BCE continues to dominate the market with over 10 million wireless subscribers and a substantial media presence. In its Q1 2025 earnings report, BCE noted a slight decline in operating revenue to $5.9 billion, just a 1.3% decrease compared to the previous year, while generating over $798 million in free cash flow.

In an effort to maintain profitability, BCE has announced significant cost-cutting measures, including a reduction in capital spending and the elimination of 4,800 jobs. While these decisions may seem harsh, they reflect a strategic shift towards greater efficiency and improved cash flow. At present, BCE offers a dividend yield exceeding 5.3%, making it an attractive option for long-term investors seeking stable income.

Overall, Suncor Energy, Bank of Nova Scotia, and BCE share a common thread: each has faced adversity yet emerged stronger. Currently trading below historical averages, these stocks offer high yields and maintain profitability despite broader market hesitance.

Investing during market downturns can be daunting, but taking a contrarian approach may yield significant rewards. Although immediate share price growth may be uncertain, these three stocks present a blend of value, income, and resilience for investors willing to navigate against the prevailing trend.