The Motley Fool

My 3 Top Picks During The Market Crash

Image source: Getty Images

This incredible stock market selloff we’ve seen in March has created a very unique situation that we haven’t seen in more than 11 years. Stocks are now on sale. Many of the companies which saw their stock prices rise rapidly over this past bull market have also seen their stock prices decline in similar fashion of late.

In this article, I’m going to discuss three high beta options for investors looking for a big pop from an eventual rebound.

Shopify

Finding a Canadian company that is more closely correlated to the health of North American (and Global) e-commerce than Shopify Inc. (TSX:SHOP)(NYSE:SHOP) is difficult to do.

In a sense, Shopify represents a very broad bet on continued growth in the e-commerce channel. Therefore, this recent selloff has sparked worries that a potential recession could be right around the corner. Today, investors who bid shares of Shopify up to record highs just a couple of months ago are spooked.

If you believe that the long-term secular e-commerce tried has only just begun, it may be time to top up your position in stocks like Shopify. After all, this recent selloff has baked more than enough risk into the stock price of Shopify. That said, more potential downside could exist should this pandemic last longer than expected.

Tourmaline Oil

Tourmaline Oil (TSX:TOU) is a Canadian mid-sized producer of natural gas and condensate. This is one of those volatile stocks with the ability to swing wildly in each directly. Most of the recent price action for this stock has obviously been on the downside.

Bears on Tourmaline will note that the company is a relatively small player in the oil patch. Therefore, they argue, Tourmaline is unlikely to receive any “too big to fail” considerations from the government.

Tourmaline is highly levered to higher oil prices. Thus, one must indeed wonder about the safety of the company’s juicy dividend yield and the long-term impact of the short-term measures the company will undoubtedly need to employ to stay alive.

On the other hand, bulls will note that Tourmaline’s core assets and operational metrics are fantastic. Should commodity prices rebound, Tourmaline may make it out of this mess better than its peers as supply is knocked out of the market, mainly due to the company’s asset quality.

Cameco

One of the largest North American players in the uranium mining space, Cameco Corp. (TSX:CCO)(NYSE:CCJ) has seen month-over-month declines of nearly 25% at the time of writing, as the broad selloff in commodities continues on.

Uranium prices have continued to be problematic for investors. Some investors are hopeful about uranium prices for 2 main reasons. First, long-term demand growth out of Japan was expected.

Second, there was a potential for increased U.S. demand for nuclear energy via the Trump administration. However, these hopes now seem likely to fall flat.

Governments are shifting their focus from growth and economic initiatives to the public health concerns posed by coronavirus.

Stay Foolish, my friends.

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify.

Fool contributor Chris MacDonald does not have ownership of any stocks mentioned in this article.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.