The current market scenario is nirvana for value seekers as the fear of a recession has pulled down the price of some resilient stocks. Is a $100 stock better than a $40 stock? That is not how stock market investing works. The stock price is a byproduct of the value of the underlying asset. A company might be making good profits and giving decent returns. However, if the stock price is more than what the company has to offer, it is overvalued, limiting its upside. At the same time, a company’s stock might be trading at a cheap price, but it may be a value trap, given the uncertainty it may bring. For instance, Dye & Durham (TSX:DND) is a good company with a strong product that generates stable revenue. However, it had a boardroom walkout, as the management exited on activist shareholders’ request to appoint their directors to the board. An unstable management has left the company vulnerable to a buyout, making its cheap share price a value trap. Canadian value stocks to boost portfolio value The current market is ripe with value buys. However, investors should navigate this market with caution and avoid value traps. Bombardier Bombardier (TSX:BBD.B) is a good value pick, with the stock trading 15% below its December 2024 price. The business jet market could face some hiccups in demand amidst fear of a recession. However, the company’s expansion in high-margin aftermarket services could keep cash flowing in. The upcoming May 1 Investor Day presentation could bring clarity on the road ahead. What makes me optimistic is the company’s management. Bombardier CEO Eric Martel executed the turnaround of a near-bankrupt company in the most difficult environment of the pandemic. Today, Bombardier is much better off with US$2.3 billion liquidity, no debt maturities till 2026, and positive free cash flow. Moreover, the company is on track to bring into service its next-generation Global 8000 aircraft, which can command a higher price. While liquidity can help the company keep its operations running and profitable even in a demand slowdown, product development could prepare it to tap the demand after the crisis subsides. Every business undergoes challenges. Value investors look at the company’s ability to tackle those challenges with ease. Bombardier’s management is well-versed in handling challenges and creating value for shareholders. It is a stock to buy the dip and hold for the long term as the company plans to reduce its debt further, look for acquisition opportunities, and pass on the company’s profits through dividends and share buybacks beyond 2025. Telus stock Telus Corporation (TSX:T) stock has been in a three-year downtrend amidst the telecom industry challenges. It trades near its nine-year low because of the sectoral headwinds. However, the hope of a cyclical upturn makes it a value buy. Telus was a beneficiary of the regulatory change that allowed competitors to use each other’s fibre infrastructure to offer their services. BCE opposed this ruling, stating that access to competitors discourages investment in state-of-the-art fibre infrastructure. However, Telus embraced it and started offering bundled services on other networks at a competitive price. While competitive pricing reduced Telus’s average revenue per user (ARPU) in 2024, its overall revenue increased. The company is restructuring its business to align it with the 5G opportunities. The outcome of the restructuring will be visible in the next two years as expenses and capital spending reduce and revenue increases. This is a good time to accumulate Telus shares and lock in a higher dividend yield. The company’s dividend payout ratio stood at 81% in 2024. This ratio will gradually reduce its target range of 60–75% as the company repays debt and increases free cash flow. Final thoughts Value investing needs an eye for detail to buy stock in difficult times and patience to stay invested until the business recovers. Investing in the above two stocks could be rewarding in the next five years.