It can be an incredibly hard decision when it comes to selling a stock. We’ve been basically brainwashed with the mantra to buy low and sell high — so much so that when the stock gets even a little higher than our purchased price, we as investors think it’s best to cut and run.
Well, that’s not always the case. And for these three stocks, I have one word to say when it comes to selling: don’t!
That is, don’t sell if you’re looking at the long term. If you’re a baby boomer entering retirement and need that nest egg or have built a solid foundation that you want to sell because a new baby is coming, the mortgage needs payment, or any other laundry list of items, then by all means, now is the time to sell.
But if you’re in it for the long haul, with no immediate need for the funds, then I would highly recommend holding on to these stocks, even though each is in the midst of either an upswing or an all-time high.
Viemed Healthcare (TSX:VMD) is a company that primarily focuses bringing healthcare products to the home. The company has zeroed in on an area where baby boomers will be incredibly interested. Rather than spending their remaining years in a retirement facility or nursing home, Viemed is providing options so that everyone can stay at home as long as they possibly can.
The company’s stock history is relatively new, but analysts see its upward trajectory continuing for quite some time, as the company continues to expand its line of products. In the last year alone, the stock has grown an incredible 109% as of writing, with analysts predicting a potential upside of 46% for the next 12 months.
Another winning stock lately has been BlackBerry (TSX:BB)(NYSE:BB). The tech stock of the 2000s has since moved away from mobile and into cyber security. The move has been in the works for a while, and investors are finally starting to see some momentum from this company.
With data and privacy being needed more and more in every type of business on the market, BlackBerry has found a way to use its experience in a new market. Despite some disappointing quarterly results, many analysts believe investors need to just wait it out a bit longer, and they won’t be disappointed. Sales are progressing, and as they do, recurring revenue will come with those sales, creating some stable cash flow. So, while BlackBerry might be down for now at $9.50 per share, it’s certainly not out.
Ah, Shopify (TSX:SHOP)(NYSE:SHOP). What do you do with a stock like Shopify? The e-commerce juggernaut of a stock has had an incredible run, growing a whopping 135% year to date to a share price of $434 as of writing. For most investors, that should mark a huge sell-off.
But stop! This is the stock I would most urge you to hold on to, even though analysts all around the internet have said a drop is coming. When that drop comes, you won’t want to have sold your stock — you’ll want to buy up more. Shopify simply has the means to become the next major corporation, and you will wish you hadn’t sold the stock when you did, even with prices as high as these. The company has expanded into new spaces, soared past analyst-expected revenue, and doesn’t seem to slow down. So, even if there is a dip, hold on to this stock with both hands.
It can be so tempting to sell a stock at its peak, and if desperate times call for it, by all means, it’s your money to do with what you will. But if you’re looking to hang on to some stocks and let them ride, I would absolutely hang on to these three. The next decade could be huge for all three companies, and you’ll want to be a part of that progress.
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Fool contributor Amy Legate-Wolfe owns shares of Viemed Healthcare Inc. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of BlackBerry, BlackBerry, Shopify, Shopify, and Viemed Healthcare Inc. BlackBerry and Shopify are recommendations of Stock Advisor Canada. Viemed is a recommendation of Hidden Gems Canada.