The last month has proven slightly challenging for market participants, but there’s no reason to get down on your luck. The good news is that the latest spell of short-term volatility has put a whole slew of deeply discounted stocks on sale for investors.
These two stocks both offer investors outstanding long-term growth potential and are additionally deeply oversold, having been out of favour among investors in recent weeks, suggesting that they may be due for a solid rebound any day now.
BlackBerry Ltd (TSX:BB)(NYSE:BB) was my top pick as part of The Motley Fool’s Top Stocks for October, and although the stock has actually fallen a little since, then it’s still a stock I have a lot of confidence in.
It’s also a stock that has historically been volatile, so there’s no reason to believe that the latest setback is anything more than temporary.
Short-sellers who talk about the company simply don’t understand that BlackBerry is no longer in the business of manufacturing and selling smart phones.
Since taking the helm a few years ago, CEO John Chen has re-positioned the company as anything but that, as a matter of fact.
Under Chen’s direction, the waterloo-based tech firm has successfully re-positioned itself as a leading software and security company for mobile technology.
With rave reviews already flooding in from its existing base of enterprise customers, and the Internet of Things already underway, this is an oversold stock that should have a very bright future ahead of it.
Cenovus Energy (TSX:CVE)(NYSE:CVE) stock got off to a great start in the first part of 2018, but as with the case of BlackBerry more recently, CVE has given back most of those gains through the back half of the year.
CVE shares aren’t yielding much – only about 1.92% per year as of this writing.
So if you happen to be a yield-focused investor looking for opportunities in the energy space you may be better off looking at other opportunities like for example, Enbridge Inc, which is currently yielding shareholders 6.85% per year.
But Cenovus stock is trading right now at just 70% of the value of its reported shareholder’s equity which has historically been a very conservative estimate of firm value.
So there is actually a lot to get excited about with this company right now, particularly for deep value investors who have the patience and are willing to see this thing through.
Not to mention that CVE is uniquely positioned to benefit from heavily discounted Canadian energy prices which have plagued the market through much of the year.
Cheap oil hurts Cenovus upstream operations, but this is typically at least partially offset by lower feedstock prices for its refining operations.
These are two companies that I’ll be watching very closely over the coming weeks in search of finding a desirable entry point for my purchase.
Iain Butler has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his almost 20 years as a professional investor.
This is your chance to get in early on of what could prove to be a very special investment recommendation. Think about how many investing trends you've missed out on, even though you knew they were going to be big. Don't let that happen again.
Fool contributor Jason Phillips has no position in any of the stocks mentioned. The Motley Fool owns shares of BlackBerry. Enbridge and BlackBerry are recommendations of Stock Advisor Canada.