1 unfairly beaten stock to buy before the end of the market sell-off

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If you’re looking to top up your TFSA or RRSP retirement fund before the best deals disappear from this market sell-off, it might be a good idea to consider averaging some of the low-multiple stocks before they’re gone. ready to ride out fears of recession. and the headwinds of inflation. It’s never a good idea to underestimate the durability of proven companies that have seen more than their fair share of economic downturns.

Without further ado, let’s take a closer look at an intriguing TSX stock that might be worth snacking on here, as it appears to be staging a comeback after a brutal first half. You may even want the stock to continue falling after you receive your first help, so you can add to your position at lower prices.

The more young investors view equities as bargain-worthy commodities, the more likely they are to accelerate the process of long-term wealth creation rather than hinder it.

Boyd Group Services: Strong Demand; margin pressures are temporary

Consider the shares of Boyd Group Services (TSX: BYD), owner and operator of collision repair shops in Canada and the United States. In Canada, the firm uses its flagship Boyd banner, with Gerber Collision & Glass as its banner in the United States.

The title is recovering from a discount of more than 50%. At the time of writing, the shares are selling for $161 per share – a far cry from the northern $250 level it peaked in the second half of last year. Although the macro environment was not favorable to Boyd, I think the tide should turn in the second half.

Soaring gas prices could tempt cash-strapped drivers to opt for cheaper forms of transportation. Still, with energy prices falling, I’d say Boyd will still see strong demand as it appears to be outpacing recent headwinds.

Boyd’s margins and growth appear to have been weighed down by transitional issues that may fade sooner than expected. High inflation and high labor costs have eaten into the company’s margins in recent quarters. For the first quarter, EBITDA margins (earnings before interest, taxes, depreciation and amortization) were 9.7%, below expectations of 10.4%.

Additionally, difficulty in sourcing certain parts (a persistent COVID headwind) has also been a sore spot for revenue growth. Despite headwinds, first-quarter sales growth soared 32% year-over-year. The demand for collision services remains incredibly strong.

As conditions normalize, I would expect Boyd’s EBITDA margins to return to double digits, while revenues continue to hover in the 30-35% range. This could pave the way for a huge rally in the stock.

The insane result for long-term investors

Looking ahead, management is bracing for such margin pressures to continue into the second quarter. However, as inflation and other supply constraints cool, the last two quarters of the year could see great relief. And that’s where I think the big rise in the title could come from. Long-term investors, beware!

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