The positive run for the TSX has seemingly come to a screeching halt on March 27. It had shed 530 points as of late morning trading today. Markets appeared to shake off the catastrophic job loss report that came out of the United States this week. However, this has made it clear that volatility is still kicking right now.
Today I want to look at three of my top stocks right now that are priced below $10. Most sectors on the TSX have been hammered in this bear market. Consequently, many high-quality companies and those with high growth potential have been pummeled.
Let’s dive in.
Stelco Holdings
The steel industry has historically faced pressure during turbulent economic periods. In North America, weak domestic demand threatens to lead to an inventory pile-up, potentially exerting even more pressure on spot prices.
Stelco Holdings (TSX: STLC) had just emerged as a comeback story from bankruptcy protection in the middle of the previous decade. It shares have dropped 58% in 2020 at the time of writing.
In its fourth-quarter and full-year 2019 report, Stelco posted some grim numbers. Revenue fell 25% to $1.84 billion in 2019, and adjusted net income plunged 92% to $42 million. Adjusted EBITDA fell 77% to $141 million.
The board of directors has maintained its quarterly dividend payment of $0.10 per share, which now represents a hefty 9.1% yield.
Stelco stock last had a favourable price-to-earnings ratio of 18 and a price-to-book value of 0.8. While the near-term may be shaky in terms of demand, in the long term, Stelco still boasts high-growth potential.
BlackBerry
When this year started, I discussed why BlackBerry (TSX: BB)(NYSE: BB) was well positioned to grow over the course of this decade. BlackBerry stock has dropped 24% month over month recently in morning trading on March 27. Investors can expect to see its fiscal 2020 fourth-quarter results next week.
The company has established itself as a leader in the cyber security sector. It has also gained a foothold in the automated vehicle sector with its QNX software platform. In the third quarter of FY2020, BlackBerry reported total non-GAAP software and services revenue of $275 million – up 26% year over year. Its Cylance division contributed $53 million to revenue in the quarter.
BlackBerry stock last had a favourable P/B value of 0.8 and possesses an adequate balance sheet. I’m still bullish in the long term due to its exposure to these exciting sectors.
Knight Therapeutics
Healthcare stocks are getting a great deal of attention right now, and this should continue even after this crisis has abated. It remains one of the most promising sectors for those on the hunt for growth.
Knight Therapeutics is a specialty pharmaceutical company that operates in Canada and worldwide. Its shares have dropped 23% over the past three months.
Knight is making aggressive moves in the healthcare space. It’s coming off the heels of a $418 million acquisition of Grupo Biotoscana – another company with promising global partners.
Shares of Knight Therapeutics possess a promising P/B value of 0.8. The company boasts an immaculate balance sheet and high growth potential in the long term.
