The market crash has been difficult, but it’s unearthed some incredible bargains. You need a bit of courage, and a lot of patience, but this looks like your best chance to buy high-upside stocks in nearly a decade.
While many stocks will rebound once markets normalize, the biggest opportunities lie with companies targeting multi-decade opportunities. Whether its artificial intelligence, legal marijuana, or rising populations, the TSX stocks below are perfect long-term bets trading at ridiculous valuations.
Buy the market crash
BlackBerry (TSX:BB)(NYSE:BB) stock could be the most lucrative on this list. But first, you need to forget everything you know about this company. It didn’t manufacture a single smartphone last year. Instead, it’s completely focused on developing next-gen security software.
For example, BlackBerry’s Cylance division uses artificial intelligence to detect cyber threats before they even occur. The company’s QNX platform secures connected vehicles from hackers. It’s already deployed in more than 150 million vehicles worldwide. As cars go autonomous, BlackBerry’s software will become critical to manufacturers. That’s why 90% of the top global brands already used the QNX platform.
The market is still ignorant of the business pivot. Since the market crash began, the company’s stock price has shed 40%, pushing the market cap down to $3.2 billion. Yet BlackBerry now has multiple business segments that could eventually be worth more than $10 billion apiece.
Capitalize on pot demand
The legal cannabis market has been a roller coaster. In 2018, pot stocks were doubling and tripling in price. In 2019, the entire market lost more than 50% of its value. The recent market crash has added additional pressures.
Yet pot demand continues to rise year after year. If you want to make a long-term bet, look no further than Cronos Group.
Due to the market crash, many pot producers are facing bankruptcy. But not Cronos. That’s because last year, it secured a multi-billion-dollar cash infusion from tobacco giant Altria Group Inc. It’s now one of the only competitors capable of investing throughout the downturn.
When conditions normalize, Cronos can seize the market share of its defunct competition.
Bet on population growth
Perhaps the biggest growth trend in history has been population growth.
In 1900, the world had 1.6 billion people. By 1950, the population had risen to 2.6 billion. At the start of this century, it passed the six-billion mark. Today, the figure is approaching eight billion. The United Nations expects the global population to continue increasing until at least 2100.
But how do you bet on rising populations? Brookfield Infrastructure Partners is your answer.
Brookfield owns assets that directly benefit from a rise in population. Its portfolio includes highways, ports, pipelines, railroads, cell towers, and more. Since 2013, the stock has delivered double-digit annual gains for shareholders. The market crash has pushed the dividend up to 3.6%.
Brookfield’s strategy isn’t reliant on the near-term economy. This is an opportunity that will last for decades to come. The downturn provides an ideal entry point.
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.
The Motley Fool recommends BlackBerry, BlackBerry, BROOKFIELD INFRA PARTNERS LP UNITS, and Brookfield Infrastructure Partners. Fool contributor Ryan Vanzo has no position in any stocks mentioned.