Market Crash 2020: 3 Powerful Stocks Trading at a Discount

Richard Packaging Income Fund stock, Clairvest Group stock, and Killam Apartment REIT stock are trading at a steep discount right now due to market crash.

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The market crash has shaken up the investors. Some have initiated a buying frenzy, while some have reevaluated their stocks and decided that their portfolio is good enough to hold on to. But some daring investors have taken the Wizard of Omaha’s quote to heart: “Be fearful when others are greedy and greedy when others are fearful.”  And they have started looking into good stocks that are currently facing the stock market onslaught, but will eventually recover.

If you are one of those investors, you may want to consider these three decent growth stocks.

A packaging fund

Richards Packaging Income Fund (TSX:RPI.UN) is a century-old packaging company that started as a glass container company that made glass containers and small bottles for pharmaceutical companies and drug trade. The company has now grown its portfolio of products, as well its geographical reach. It started in central Canada and now boasts a consumer base that spans North America.

The company has been a steady grower for some time now. Its previous five-year growth was especially impressive, with returns equating to about 129%.  The company also issues monthly dividends, and the current yield is 4.45%. It’s trading at $29.4 per share. That’s a 40% discount from its pre-crash levels.

An equity management firm

Clairvest Group (TSX:CVG) is a Toronto-based private equity management firm. The company currently manages an equity capital of about $2.4 billion. The company invests its own capital in entrepreneurial corporations, which means the company bank on the fact that a good starting venture can grow with the right amount of funding provided by Clairvest. The company’s board itself is made up of entrepreneurs who are well equipped to test the waters.

The company has been growing like clockwork in the past five years. The CAGR comes out at a modest 9.8%. It’s also a dividend payer with a current yield of 1.22%. The stock price right now is $42.5, which represents a 20% fall from the yearly average before the crash.

A REIT

Multifamily properties and apartment buildings tend to offer much better cash flows compared to single-family rentals. Killam Apartment REIT’s (TSX:KMP.UN) continued success is evidence of this trend.

The company is one of Canada’s largest multifamily landlords. It has a $3.3 billion portfolio of multifamily and commercial properties, most of which are located in six major cities in the country.

The company is a monthly dividend payer and has increased the payouts four times in the past five years. Its five-year CAGR is an impressive 14.5%. The stock price has fallen 27% since the crash, making it an amazing time to bag this decent growth stock at a discounted rate.

Foolish takeaway

Many companies with strong fundamentals and growth potential are being punished with the stock market. Their current stock prices aren’t truly reflective of what the companies can offer the shareholders.

If you can pick a few good stocks at a time like this, you can really strengthen your portfolio beyond what you would have able to do with your usually investment capital.

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 RICHARDS PACKAGING INCOME FUND.

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