3 Depressed Stocks That Could Double

All of these stocks have lagged the index in recent times, but that could change.

| More on:
The Motley Fool

The last few years have been very good to investors, with most major indices showing healthy gains. Unfortunately, that makes it harder today to find stocks trading at bargain prices.

However, not every stock has participated in the rally, and some of these depressed names may now be seriously undervalued. On that note, below we look at three companies that could be poised to show big gains.

1. BlackBerry

Of course, any discussion about depressed stocks in Canada must start with BlackBerry (TSX: BB)(NASDAQ: BBRY), at one point Canada’s largest company by market capitalization. Since then, both the company and the stock have incurred deep losses as rivals Apple and Google have come to dominate the smartphone market.

New CEO John Chen seems to have the right priorities in place, and is leading a strategy shift towards enterprise services, where BlackBerry still has an advantage over its rivals. Crucially, Mr. Chen has a solid track record of leading turnarounds, most notably at Sybase, which was heading towards bankruptcy when he took over. Sybase was eventually sold to SAP for $5.8 billion.

If Mr. Chen is able to work his magic again, then Blackberry’s shares could soar. Until then, investors understandably remain skeptical, and the stock price remains nice and low.

2. PotashCorp

Six years ago, when BlackBerry was Canada’s most valuable company, the second place went to PotashCorp (TSX: POT)(NYSE: POT). Since then, increasing supply has led to reduced prices for potash, as well as a lower price for PotashCorp’s stock.

Now, though, potash prices are so depressed that bringing on new supply is uneconomic. So eventually, with rising populations, rising incomes, and rising meat consumption, there could easily be a shortage of potash, putting serious upward pressure on the price. PotashCorp would get a further boost if chief rival Uralkali reverses its decision from a year ago to pursue a volume-over-price strategy.

3. Westport Innovations

Westport Innovations (TSX: WPT)(NASDAQ: WPRT) is a provider of technology that allows engines to run on natural gas. This is a market that is ripe for serious growth — natural gas burns cleaner than diesel and is much cheaper, too. Industries like trucking and public transportation have already been switching over.

However, Westport’s shares have not done well in recent times, down 43% over the past 12 months. This is partly due to the fact that natural gas prices have been rebounding. But natural gas engines still have lots of promise, and if that promise is fulfilled, Westport’s shares could soar.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Benjamin Sinclair holds no positions in any of the stocks mentioned in this article. David Gardner owns shares of Apple and Google (C shares). Tom Gardner owns shares of Google (C shares). The Motley Fool owns shares of Apple, Google (C shares), PotashCorp, and Westport Innovations.

More on Investing

Dividend Stocks

2 of the Best Dividend Stocks to Buy Before They Start to Recover

These dividend stocks offer superior deals for those seeking long-term passive income, but these prices certainly won't last forever.

Read more »

Dividend Stocks

Algonquin Insiders Are Loading Up on AQN Stock – Should You Follow?

Algonquin Power and Utilities (TSX:AQN) insiders poured millions into AQN stock last week. Share valuation multiples seem compelling.

Read more »

Young adult woman walking up the stairs with sun sport background
Stocks for Beginners

New Investor? Buy These 2 Growth Stocks

These two growth stocks are perfect if you want superior growth in the near future but a long-term hold that…

Read more »

Man data analyze

A Passive-Income Triple Play: 3 Top TSX Stocks to Buy Together

These two top Canadian dividend stocks provide long-term investors with much-needed stability and passive income right now.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

TFSA: 2 Stocks To Earn Passive Income Even in a Recession

Investors are coping with 2023 recession fears differently. Some are investing in stocks that can create long-term passive income.

Read more »


2 Top Canadian Retail Stocks That Could Get a Holiday Boost

Here's why Canadian Tire (TSX:CTC.A) and Canada Goose (TSX:GOOS) are two top Canadian retail stocks to buy right now.

Read more »

Cogs turning against each other
Dividend Stocks

3 Stocks You Can Confidently Own in an Upside-Down Market

Although many stocks have lost major value this year, here are three high-quality companies you can confidently own in this…

Read more »

Increasing yield
Dividend Stocks

2 Ultra-High-Yield Dividend Stocks on Sale Today

Besides their ultra-high yields, here are more factors that make these two of the best Canadian dividend stocks worth buying…

Read more »