Invest $3,000 in These 3 Top Stocks Right Now

If you have even a little cash available to invest, I would consider these three stocks first and foremost.

| More on:
Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks

Image source: Getty Images.

It’s been a hard year for Canadians. After seeing stocks reach all-time highs — and likely your portfolio as well — those same investments plummeted only a few months into 2020. Now, a new study states that three out of five Canadians (roughly 57%) have had a significant financial hit this year.

A combination of the markets and the horrific coronavirus pandemic has left many wondering where money will come from in the future. It doesn’t leave much room if you’re hoping to invest.

But there has been some good news — the Canadian Emergency Response Benefit (CERB).

The CERB provides Canadians with $500 each week for a maximum of 16 weeks. So if you’re waiting on employment insurance or are self-employed and simply can no longer work because the kids are at home, CERB is for you.

The government hopes that with this help, Canadians will at least have some stability during this incredibly volatile time. You might even be able to start saving enough again to consider making a small investment. If so, I would invest in these three stocks.

BMO

While Bank of Montreal (TSX:BMO)(NYSE:BMO) might not be the largest Canadian banking stock, that can be perceived as a plus in today’s environment. BMO is still significantly undervalued, even as some other banking stocks are starting to rebound. So if you can invest long-term in this stock, it could be a great investment.

BMO trades at $73 at writing, with analysts pegging it with a potential upside of 41%. The stock has started to creep back up since bottoming out last month, and should shoot up in the next few years with the bank’s early expansion into the United States, where there are plenty of growth opportunities available.

Even better, should a housing crisis happen, this bank as the lowest exposure of Canada’s Big Five Banks to the housing market.

If you can invest just $1,000 in this stock today, analysts believe in the next year that investment could be worth $1,506.85.

Manulife

Another stock that’s seen short-term losses with long-term gain potential is Manulife Financial Corp. (TSX:MFC)(NYSE:MFC). This insurance company has collected some of the biggest names out there. But while those names are in North America, investors are looking to Asia.

Manulife is expanding into the Asian markets, and analysts believe this will continue the company’s double-digit growth for at least a few more years. This expansion will also increase diversification for the company, something all investors can get behind.

Right now, the stock is incredibly cheap at $17.50 as of writing. Within a year, analysts believe the stock should trade near $35 per share. That’s a potential upside of 100%!

If you can invest in Manulife today, you could double your investment in a  year.

Suncor

Finally, we have the unfairly beaten-down Suncor Energy Inc. (TSX:SU)(NYSE:SU). This energy stock doesn’t deserve its current share price of $22.80. Investors have looked at Suncor as simply an oil and gas stock, when in reality, the company is Canada’s largest fully integrated energy company, making it the perfect company in which to invest.

While other purely producing oil and gas companies are losing money, Suncor is still bringing in cash because of its downstream assets.

It has long-term contracts, which means that after the crash, the company will continue to produce strong earnings reports. Within a year, the stock could reach even $60 per share for a potential upside of an incredible 163%!

If you can invest $1,000 in any stock, I would choose Suncor. A year from now, that investment could be worth $2,631.58.

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.

More on Coronavirus

little girl in pilot costume playing and dreaming of flying over the sky
Coronavirus

Air Canada Stock: How High Could it go?

AC stock is up 29% in the last six months alone, so should we expect more great things? Or is…

Read more »

eat food
Coronavirus

Goodfood Stock Doubles Within Days: Time to Buy?

Goodfood (TSX:FOOD) stock has surged 125% in the last few weeks, so what happened, and should investors hop back on…

Read more »

stock data
Tech Stocks

If I Could Only Buy 1 Stock Before 2023, This Would Be It

This stock is the one company that really doesn't deserve its ultra-low share price, so I'll definitely pick it up…

Read more »

Aircraft Mechanic checking jet engine of the airplane
Coronavirus

Air Canada Stock Fell 5% in November: Is it a Buy Today?

Air Canada (TSX:AC) stock saw remarkable improvements during its last quarter but still dropped 5% with more recession hints. So,…

Read more »

Airport and plane
Coronavirus

Is Air Canada Stock a Buy Today?

Airlines are on the rebound. Does Air Canada stock deserve to be on your buy list?

Read more »

A patient takes medicine out of a daily pill box.
Coronavirus

Retirees: 2 Healthcare Stocks That Could Help Set You up for Life

Healthcare stocks offer an incredible opportunity for growth for those investors who look to the right stocks, such as these…

Read more »

sad concerned deep in thought
Coronavirus

Here’s Why I Just Bought WELL Health Stock

WELL Health stock (TSX:WELL) may be a healthcare stock and a tech stock, but don't let that keep you from…

Read more »

healthcare pharma
Coronavirus

WELL Stock: The Safe Stock Investors Can’t Afford to Ignore

WELL stock (TSX:WELL) fell 68% from peak to trough, and yet there's no good reason as to why. So now…

Read more »