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3 Stocks the Smartest Investors Are Buying

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It seems that just when you thought things couldn’t get any crazier, this last week proved everyone wrong.

As Canadians continue to be in the midst of a market meltdown, there was finally some positive movement for investors. After a drop of almost 40% in the S&P/TSX Composite, stocks are finally turning around. Whether this will last is up for debate, but as of writing the TSX has bumped back up by 14%.

This is where things get really interesting as an investor. You could wait and see if the markets take another turn, or you could choose to believe that we have hit market bottom and now should be the slow and steady climb that we’ve seen in the past.

^TSX Chart

^TSX data by YCharts

Take the Great Recession of 2008. As you can see, after a quick plummet, stocks then turned around and slowly but surely crept back up. Analysts are saying that with this drop, things could turn around much quicker.

With that in mind, let’s look at some great stocks analysts and top investors alike will be picking up right now.

CP Railway stocks

A top stock you should consider for your portfolio, CP Railway Ltd. (TSX:CP)(NYSE:CP) is one of two rail lines that make up Canada’s rail duopoly. Where CP stands out is that the company has already completed is reinvigoration process.

It has streamlined its systems, cut excess weight and is now investing in its infrastructure to ship its products quickly, efficiently and cheaply.

What’s more, a company like CP is great during a downturn. It’s unlikely to fall as drastically as others have, as items still need to be shipped. Right now it’s a bit different, as companies are closing across the country due to the coronavirus outbreak.

But when things get moving again, CP will likely be of the first stocks to rebound. In fact, it’s already climbed to share prices witnessed last November.

Enbridge stocks

Another crisis that investors are keeping an eye on is the oil and gas crisis. The problem is, pipeline companies are taking a beating even though these companies are the ones trying to solve the problem.

A company like Enbridge Inc. (TSX:ENB)(NYSE:ENB) is a great buy right now, as the stock is unnecessarily undervalued.

Enbridge has a number of long-term growth projects set to send oil and gas across North America, ending the oil and gas glut and these ultra-low prices at the pump.

Once complete, Enbridge will be a booming company you’ll have wished you bought back when the stock was this cheap. As of writing, it sits at almost half its fair value.

Newmont Goldcorp stocks

If you want to play it safe, gold stocks are proving to be a safe haven for many investors. The price of gold has been climbing steadily for some time, and analysts believe the price could reach $3,000 per ounce by 2025. That’s still a long way to go from where it now stands at around $2,100 per ounce, however.

If you’re going to consider one stock, check out Newmont Goldcorp (TSX:NGT)(NYSE:NEM). This company’s diverse portfolio brings down its level of risk substantially, and after its $10 billion acquisition of Goldcorp, the company is now the world’s largest gold miner.

So if any stock is going to see a bump from gold prices, it’s Newmont. While the stock isn’t as much of a deal these days, it’s likely to keep climbing ever higher as gold continues to grow.

Stock up on stocks

As you can see from the last recession, after a few bumps in the road and a major dip, the TSX Composite Index seemed to move steadily upward once again. We may have already reached this point, as can be seen in the graph below.

^TSX data by YCharts

It’s not too late to buy up these stocks that the smartest investors are now considering. Just be patient, and in a few years’ time you’ll be incredibly glad you stocked up while you had the chance.

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Fool contributor Amy Legate-Wolfe owns shares of CANADIAN PACIFIC RAILWAY LIMITED and ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge.

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