3 Stocks to Load Up on Ahead of the Transportation Boom

A transportation boom is upon us, and it’s a perfect time to buy up stocks, such as Lithium Americas Corp. (TSX:LAC)(NYSE:LAC), before they explode.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published September 20, 2019 8:00 am EDT

I know what you must be thinking coming into this article. “Transportation boom? What transportation boom?” But believe me, one is certainly coming, and now is the time to buy up shares in the stocks that have the biggest promise of taking advantage.

There are a number of factors contributing to this boom in the industry. The world is shifting, seeking out the cheapest, cleanest, safer, and most convenient modes of transportation possible. This is happening both on the individual level and through transportation companies. During the next decade, this shift could be felt and, in fact, has already begun.

So, if you’re wanting to get on board before these opportunities roll out, I would consider buying any of these stocks.

BlackBerry

You might not think of BlackBerry (TSX: BB)(NYSE: BB) as a transportation company, but this company is already leading the charge with its investment into autonomous vehicles (AV). AVs have the potential to provide safe, cheap options for riders and could even include ride-share programs and public transportation. This, of course, could also expand into the trucking industry, individual cars, and beyond.

But if that’s going to happen, there has to be 100% certainty that these companies will be safe for individuals to use. Enter BlackBerry, which has moved away from hardware and is now providing cybersecurity software to companies around the world. This now includes the AV industry, where BlackBerry has been well ahead of any other competitors. As the world of AVs rise, BlackBerry shares should rise right along beside them.

Lithium Americas

You’ve all heard of electric vehicles (EV), as these have been around for quite some time. EVs are the future in all the transportation industries I previously mentioned, as companies want what’s cheapest. It’s an added bonus that EVs are better for the environment, but what it comes down to is price point. Once past the initial investment, trucking industries and public transportation should especially explode with the use of EVs.

To power EVs, however, you’ll need lithium. That’s where Lithium Americas (TSX: LAC)(NYSE: LAC) will take advantage as a lithium miner, and with a share price even below that of BlackBerry. As fellow Fool writer Ryan Vanzo recently pointed out, “You can’t make [EVs] without batteries, and you can’t make batteries without lithium. Because it supplies the entire industry, Lithium Americas is one of the best ways to play the electric vehicle boom without needing to bet on a single manufacturer.”

Magna International

There are a lot of options when it comes to EV manufacturers, but if you’re going to go Canadian, I would recommend Magna International (TSX: MG)(NYSE: MGA). The company is the largest automobile parts manufacturer in North America by sales of original equipment parts, bringing on huge clients and signing long-term deals with companies moving forward with both EVs and AVs.

After all, a car is still a car, and cars need parts. With new models being produced, Magna should certainly see momentum as a parts producer for these new vehicles. It also provides investors with diversification, rather than putting all their cash on one car stock.