Here Are 3 More Stocks That Can Make You Filthy Rich (and That No One Else Wants)

Hunting for riches in 2019? This group of beaten-down stocks, including Canada Goose Holdings Inc. (TSX:GOOS)(NYSE:GOOS), might provide the value you’re looking for.

Hi again, Fools. I’m back to highlight three stocks that fell sharply last week. As a reminder, I do this because the biggest market gains are made by buying quality companies

  • during times of extreme market turbulence;
  • when their long-term potential is being ignored; or
  • when they’re available at well below intrinsic value.

The S&P/TSX Composite Index sank another 4.5% last week, so there should be no shortage of attractive value plays to pounce on.

Let’s get to it.

Shop drop

Kicking things off is Shopify (TSX:SHOP)(NYSE:SHOP), which dropped 11% last week. Shares of the cloud-based ecommerce technologist are now off 23% versus a loss of 17% for the S&P/TSX Capped Information Technology Index.

Triggering the recent downturn was a dilutive secondary offering by the company. Specifically, it’s an offering of 2.6 million Class A subordinate voting shares at $154 per share.

On the bright side, Shopify’s operations remain strong. In Q3, EPS topped expectations by $0.07 as revenue soared 57.5% to $270.1 million.

“Solid execution and continued rapid growth drove our strong results in the third quarter,” said CFO Amy Shapero. “We’re well positioned to close 2018 and enter 2019 with excellent momentum.”

With the stock now off nearly 30% from its 52-week highs, it might be an opportune time to bet on that momentum.

Premium pick

Next up, we have Premium Brands Holdings (TSX:PBH), whose shares sank 7% last week. The food distributor is now off 37% over the past year versus a flat return for the S&P/TSX Capped Consumer Staples Index.

Trade uncertainty has weighed heavily on the stock in 2018, but there’s reason to be optimistic about the new year. In the most recent quarter, adjusted EPS climbed 22% as revenue spiked 50% to a record $835.5 million.

“I can say with full confidence that our long term prospects have never been better,” said President and CEO George Paleologou. “In fact, we now have more major new growth initiatives in our pipeline than we have ever had in our history.”

At a solid dividend yield of 2.6%, that long-term potential seems too tasty to pass up.

Cooked goose

Rounding out our list is Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS), which plunged a whopping 18% last week. Shares of the winter jacket specialist are still up 50% over the past year versus a loss of 21% for the S&P/TSX Capped Consumer Discretionary Index.

The brand has become the target of a boycott in China, ignited by Canada’s arrest of Huawei Technologies CFO Meng Wanzhou. China represents about 30% of the world’s luxury market and is a significant part of Canada Goose’s long-term growth plans, so it’s no surprise that Mr. Market is concerned.

That said, Canada Goose’s financials and growth rates remain rock solid. With the stock now off 40% from its 52-week highs and trading at a forward P/E in the low 30s, it’s tough not to see this China trouble as anything else but an attractive long-term buying opportunity.

The bottom line

There it is, Fools: three recently battered stocks worth looking into.

They aren’t formal recommendations, of course. Instead, view them as a starting point for further research. Sinking stocks can keep sliding for a prolonged period of time, so plenty of homework is required.

Fool on.

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.

Brian Pacampara owns no position in any of the companies mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and Shopify. Shopify is a recommendation of Stock Advisor Canada.

More on Investing

ETF chart stocks
Investing

Here Are My 2 Favourite ETFs for 2025

These are the ETFs I'll be eyeballing in the New Year.

Read more »

money goes up and down in balance
Dividend Stocks

This 6% Dividend Stock Is My Top Pick for Immediate Income

This Canadian stock has resilient business model, solid dividend payment and growth history, and a well-protected yield of over 6%.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Outlook for Cenovus Energy Stock in 2025

A large-cap energy stock and TSX30 winner is a screaming buy for its bright business outlook and visible growth potential.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Stock Market

CRA: Here’s the TFSA Contribution Limit for 2025

The TFSA is a tax-sheltered account that allows you to hold diversified asset classes at a low cost.

Read more »

Hourglass and stock price chart
Tech Stocks

1 Canadian Stock Ready to Surge Into 2025

There is a lot of uncertainty about the market in general as we move closer to the following year, but…

Read more »

think thought consider
Stock Market

Billionaires Are Selling Apple Stock and Picking up This TSX Stock Instead

Billionaires like Warren Buffett continue to trim stakes in Apple stock, with others picking up this long-term stock instead.

Read more »

ways to boost income
Dividend Stocks

1 Excellent TSX Dividend Stock, Down 25%, to Buy and Hold for the Long Term

Down 25% from all-time highs, Tourmaline Oil is a TSX dividend stock that offers you a tasty yield of 5%…

Read more »

canadian energy oil
Energy Stocks

Is Baytex Energy Stock a Good Buy?

Baytex just hit a 12-month low. Is the stock now oversold?

Read more »