A month into the new decade, it is time to start anew and take another look at the stock market and your investment portfolio. It certainly looks like there are a lot of shares on sale lately since the announcement of last year’s U.S. Federal Reserve tax cuts and various geopolitical factors.
2019 was a fantastic year for the TSX Index. It climbed to all-time highs, but also saw plenty of volatility. Amid the market fluctuations, several stocks were oversold and offer massive upside potential.
The road to Eldorado
Eldorado stock had a fantastic performance in 2019. In the past 12 months, the stock has gained almost 174% to trade for $9.63 per share at writing. The stock price for the company is unbelievably low at the time of writing given that its price to book ratio is just 0.47.
The gold mining company was struggling at the start of 2019, as its operations in southeastern Europe due to projects put on hold awaiting permits in the region.
Its risk due to the commissioning of the Lamaque mine in Quebec contributed to the decline in value for the company. The risk, however, paid off for the mining company.
With production beginning in April 2019, the company experienced a 20% growth in gold production. Gold is perceived as the traditional safe haven asset in times of financial uncertainty. Amid increasing fears of recession, gold stocks like Eldorado are likely to increase drastically in value in the coming months.
Over the moon
With Canada’s exposure to oil and gas prices, there is almost at least one company in its energy sector trading for low prices on the TSX. A case in point is Crescent Energy Corp. As of this writing, it is trading for $4.99 per share. The stock is incredibly undervalued with a price to book ratio of just 0.43.
Executives from the company believe the stock is an incredible bargain at its price right now. They are busy buying back shares from the company in the millions.
The energy company saw massive ups and downs within a space of the past 12 months, and it’s currently above its 52-week low by almost 46% with plenty of room to grow even further.
The company is on the mend, and the share buyback may lead to plenty of shareholders see their gains multiplied. The company may be on the cusp of a massive turnaround.
A beaten-down tech company
High debt, bad luck, and several other issues contributed to a massive decline in the share prices of Maxar Technologies stock last year. The share prices for the company declined as low as $5.10 per share in the past 12 months.
At the time of writing, the MAXR stock is trading for $26.70 per share – 400% higher than its 52-week low in March 2019.
With a reasonable price to book ratio of 2.27, the beaten-down tech stock still has plenty of room to climb further on the TSX. Many of the issues plaguing the company have been sorted out to a certain degree and investors are coming back in droves.
The company has secured a partnership with NASA to help get humanity back to the moon. It is still dealing with plenty of issues that decreased the value of the stock.
A $3.4 billion debt based on its latest quarterly report from September 29, 2019, may make you feel cautious, but could be an excellent buy for value-oriented investors.
I believe the shares of all three companies are trading below potential value. You might want to consider adding the stocks to your portfolio so you can capitalize on likely massive gains in the coming months.
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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends MAXAR TECHNOLOGIES LTD.