Nothing beats a bargain, especially when it comes to stocks. While the fear that shares could always trade lower is certainly in the back of everyone’s mind, when those shares start trading around 52-week lows it’s hard not to think, How much lower could they possibly go?
That’s especially the case with stocks that have seen stellar performance and still have a strong future outcome. While the present might not be as certain, for those patient investors willing to buy now and hold on for a decade or so, these stocks could contribute significant returns for your portfolio.
So let’s take a look at two options to add to your watch list.
The once-great tech stock has come a long way down. After finally moving away from the hardware side, BlackBerry Ltd. (TSX:BB)(NYSE:BB) has turned toward the software side of its business, and analysts are still pretty excited about it.
The stock was on the rise this year, but since the end of March, has been on a steady decrease down to where it is now at about $9.25 per share, near its 52-week low of $8.85.
The main issue current investors have with BlackBerry is its uncertainty. The company is expanding into areas where it has expertise both in the past and present, but investors aren’t quite sure when they’ll see the surge in stock price.
That said, BlackBerry already appears to be on the way to profits, with revenue jumping 23% in the last quarter, and the company reaffirming its full-year 2020 view of 23-27% revenue growth. BlackBerry also confirmed its ahead of schedule with its integration of Cylance’s cybersecurity technology.
As the company continues to integrate this technology and expand into areas where further cybersecurity is necessary, BlackBerry is already focused on helping businesses stay secure.
Literally, with BlackBerry Secure offering any companies using wireless and smart devices what it needs to keep its company secure. These projects are long-term operations, so for the patient investor, now is a perfect time to pick up BlackBerry stock.
On the one hand, China is building up 50 reactors set to come online, with India and Russia also adding to that number over the next few years. On the other hand, many more countries are moving away from uranium with the aim of preventing tragedies such as the Fukushima disaster.
While Cameco continues to trade just above its 52-week low of $11.07 per share, the stock could certainly continue to dip before it rises again. The price of uranium is still down, and there are available stock piles before Cameco would really start up extraction again.
In order for that to happen, the uranium price would have to increase, demand would have to increase, and stock piles would have to fall quite a lot. That’s a long list of potential happenings before expecting any type of significant share increase.
But again, if you’re confident, the uranium industry could certainly rebound, so if you’re willing to wait, Cameco is a good option right now.
The company is in a solid position for long-term investors, and should uranium turn around, Cameco would be the world’s largest producer, so the gains could be tremendous.
Both of these stocks offer the patient investor a chance to make significant returns at a low cost. However, if I’m going with just one today, it has to be BlackBerry. Investors will likely see an increase sooner than they would with Cameco, and the company’s books are already looking stronger and stronger.
Meanwhile, the long-term goals the company has set out are much more permanent than where it was as a mobile creator. So for those willing to wait, now is the time to buy.
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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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns shares of BlackBerry and BlackBerry. BlackBerry is a recommendation of Stock Advisor Canada.