The TSX Index is currently offering some good deals for contrarian investors.

Renewable energies TransAlta

Renewable energies TransAlta (TSX: RNW) is trading near $ 19 a share from the 2021 high around $ 24.50. The company recently had to close a wind farm due to the collapse of one of the units. This will impact the current quarter’s results, and investors are waiting to see how long the project will be out of service.

Over the long term, TransAlta Renewables should be a solid investment. The Company owns and operates wind, solar, hydroelectric and gas power generation assets in Canada, the United States and Australia. TransAlta Renewables is also entering the energy storage business with the construction of a hybrid solar battery installation for a mining customer. As battery technology continues to improve, this segment offers good growth potential.

TransAlta Renewables makes strategic acquisitions to drive revenue and earnings growth. The company recently purchased a wind farm in North Carolina to strengthen its presence in the United States. Consolidation in the renewable energy market is expected to accelerate and TransAlta Renewables should continue to add assets to complete the portfolio.

The stock looks cheap right now and offers a 4.9% dividend yield, so you get paid well to wait for the rebound and can add some ESG exposure to your portfolio.

Barrel gold

Barrel gold (TSX: ABX) (NYSE: GOLD) is down over 40% from the 2020 high. The price of gold is down about 15% over the same period. Miners’ stock prices normally move more than the commodity, but the sale of Barrick Gold seems exaggerated.

The company has a strong balance sheet and is making a lot of money at the current gold price of around US $ 1,780 an ounce. All-inclusive sustaining costs in the second quarter of 2021 for gold production have fallen below US $ 1,100 an ounce, and that number could fall back below US $ 1,000 next year, as some pandemic impacts will subside. In a recent press release ahead of third quarter results, Barrick said its third quarter production exceeded second quarter and fourth quarter production would be the best for 2021.

Barrick Gold has tripled the dividend in the past three years, and another generous increase could be underway for 2022. The current annualized payout of US $ 0.36 per share offers a return of 1.9%. Barrick Gold also offered investors a special return of capital this year which amounted to US $ 0.42 per share. A repeat could be underway if Barrick hits its 2021 targets and commodity prices hold current levels or improve next year.

Barrick Gold is also a copper producer. The price of copper has fallen from US $ 2 per pound in March 2020 to the current price of nearly US $ 4.60. Barrick Gold said its all-inclusive sustaining costs for copper production fell 4-6% in the third quarter from the second and that fourth quarter copper production will be the highest of the year. The recent surge in copper prices following the Q3 pullback bodes well for Q4 results.

Barrick Gold appears oversold under current market conditions and positive results in Q3 and Q4 2021 could push stocks higher in the coming months.

The end result on actions against the tide

TransAlta Renewables and Barrick Gold look cheap right now and could generate big gains for contrarian investors looking for stocks to buy by 2022. If you’ve got the money to work on, those stocks are worth looking at. be on your radar.