The TSX isn’t the greatest place to earn a good return. In five years, the index is up around 17%, while the NASDAQ is up around 90%, and even the Dow Jones is up close to 60%. However, that doesn’t mean that investors can’t find good deals on the Canadian exchange. Below are three stocks that have the potential to do very well in 2020 and that could be great buys today.
BlackBerry (TSX:BB)(NYSE:BB) is an underrated buy, but it may not stay that way for long. The company has struggled, as underwhelming quarterly results have kept investors bearish on the tech stock, with BlackBerry losing over 30% of its value in the past year. However, as concerning as that may be for investors, BlackBerry is still a solid long-term buy.
The more engrained people are in technology and the more that they use it, the more important that cybersecurity and data protection will be, which is the company’s specialty. And that’s why, regardless of what a three-month period says about the company’s earnings, I plan to hold on to my shares of BlackBerry, because I know there’s a lot more potential for the stock, not just in 2020 but over the longer term.
Currently, the stock is trading at around 1.7 times its book value and could be a steal of a deal. Although it may take some time for the stock to rally, all it takes are a couple of strong quarterly results to send the stock back in the opposite direction.
Great Canadian Gaming (TSX:GC) is another stock that hasn’t got much love over the past year, falling 18% over the past 12 months. And that figure would have been worse if the company didn’t get a big boost in February after announcing that it would be purchasing and cancelling up to $500 million of its shares. The announcement came just weeks before Great Canadian is set to release its fourth-quarter results on Mar. 3, 2020.
Although the company didn’t generate any growth last quarter, there are many good reasons for investors to be bullish on Great Canadian today. For one, the company has deals in place to operate casinos that will generate lots of long-term growth for many years, and so while it may be struggling in the short term, that may not persist over longer periods.
With the stock trading at only 13 times its earnings and less than two times its revenue, Great Canadian is also a good value buy as well. The company needs some good results this year to turn things around sooner rather than later, but it’s still a good buy overall.
Canopy Growth (TSX:WEED)(NYSE:CGC) could stand to be a big winner in 2020. The pot stock is coming off an exceptional quarter, where it posted a smaller loss than analysts were expecting, and its revenue also came in above projections as well. With many marijuana companies disappointing analysts and investors when it comes to earnings, Canopy Growth is starting to stand out from the pack. With a new CEO in charge, and the company focusing more on its bottom line, a couple more quarters like the one it had in February could make 2020 a turnaround year for the company.
The stock has been trading around $30 per share, which is nowhere near the more than $60 a share it traded at during the first half of 2019. While getting back to those levels may be a tall task, with the company selling edible products this year, including beverages, its results may get even better in future quarters.
If the company continues outperforming its peers, investors could bid up the price of the stock and doubling in value may become a very real possibility.
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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 David Jagielski owns shares of BlackBerry. The Motley Fool recommends BlackBerry and BlackBerry.