If you’re looking for good stocks to add to your portfolio, the good news is that there are plenty of solid options still out there today. Below, I’ll look at two stocks that look like very appealing long-term investments as well as one that I’d steer clear of.
BlackBerry (TSX:BB)(NYSE:BB) has struggled since releasing its most recent quarterly results. At under $10 a share, however, it’s a good price to get in and buy the stock. Although BlackBerry may be a much more modest investment than it may have been years ago, the company’s sound business model makes it not only a safer buy, but the stock is also a lot more stable.
And with news of yet another data breach making headlines this week involving Capital One, it just reinforces how important cybersecurity and safeguarding data is and why BlackBerry is not going to run out of work anytime soon. While it may take some time to build its new customer base, there is a lot of room for the company to continue growing its sales and profits for the foreseeable future.
Not only is BlackBerry heavily involved in cybersecurity, but it could be a good play for investors looking to benefit from the self-driving revolution.
AltaGas (TSX:ALA) could pick up steam after the company recently announced it would be selling some assets and further refocusing its operations. While it’s not a terribly good sign to be selling assets, getting a huge influx of cash will do wonders for the company to improve its overall financial strength.
The company knows that it has to win back investors by improving its operations, and by strategically focusing on certain areas of its business, it gives AltaGas better odds for success in the long term. The stock, which was my top pick for 2019, has already risen more than 44% since January. At around $20 a share, there’s still a lot more room for the share price to increase even further.
While it may not be paying as high a dividend as it was before, reducing its payouts has done wonders for AltaGas’s stock price.
Aurora Cannabis (TSX:ACB)(NYSE:ACB) is one stock that, despite the market for cannabis edibles opening later this year, I would avoid investing in. For one, unlike some of its peers in the industry, it hasn’t partnered with a company from another industry to help give it an advantage in the edibles market. Instead, it looks as though Aurora seems content with going at it alone, which can be a risky proposition given all the competition that exists.
And although sales have been growing at a rapid pace, we haven’t seen much of an improvement in the company’s bottom line, as Aurora still remains a long shot to post a profit from its operations anytime soon.
Year to date, the stock has risen by 17%, but in just the last month it has fallen by 20%, and more losses could be on the way. Unless Aurora comes out with a big improvement in its next quarterly results, I’d expect more of a sell-off to take place, as investors adjust their expectations for the cannabis industry as a whole.
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 David Jagielski owns shares of BlackBerry. The Motley Fool owns shares of BlackBerry and BlackBerry. AltaGas and BlackBerry are recommendations of Stock Advisor Canada.