Some of the best stocks are the ones overlooked by other investors. Stocks that are either flying under-the-radar or recently listed are more likely to be trading below fair value. Given how messy 2020 has been, plenty of recent initial public offerings (IPOs) have gone unnoticed by investors.
With that in mind, here are the three best stocks that have listed over the past few months.
Best stock for recessions
Waste management and disposal is a recession-proof industry. Cities and provinces have long-term contracts to manage waste that are immune to the ongoing pandemic or economic slowdown. That’s probably why it was a great time for GFL Environmental (TSX:GFL)(NYSE:GFL) to launch an IPO.
The company listed shares on March 4. Since then, the stock is up 15.6%. Compare that to the TSX 60 performance and you can see why this is the best stock for recessions.
GFL is seeking to expand operations. Acquiring and consolidating the market is its only way to keep generating wealth for shareholders. Its counterpart in the U.S. is worth 13 times as much and offers a steady 2% dividend yield, which means there’s plenty of room ahead for expansion.
At the moment, the stock is still under-the-radar. That’s probably why the stock price is trading at just 20% higher than book value per share. Add this to your “safe stocks” list for 2020.
Best stock for Bitcoin
After years of trying to get a Bitcoin exchange-traded fund listed, The Bitcoin Fund (TSX:QBTC.U) finally launched while the world wasn’t paying attention. The stock IPO’d on April 7, at the height of the coronavirus panic and market downturn. Since then, the stock is up 8%.
Managed by 3iQ Corp., the ETF closely tracks the market price of Bitcoin and offers investors a quick and easy way to bet on the rise of digital currencies. Bitcoin has been as volatile as the stock market in recent months, but the value of the digital token has been more robust than most real estate or retail stocks during this crisis.
Now, plenty of billionaires and veteran investors are betting that Bitcoin’s value could surge as traditional currencies lose value. In fact, Paul Tudor Jones made a huge bet on Bitcoin and said it behaves like “gold in the 1970s.” In other words, QBTC could be the best stock to own if you believe government borrowing and money printing is out of control.
Best stock for gamers
While nearly every professional sport has been suspended this year, online gaming and video games have been as popular as ever. Enthusiast Gaming Holdings Inc, which listed on January 23, serves as a proxy for this fascinating industry.
The company specializes in video game journalism. It owns and manages a number of digital publications focused on e-sports. According to experts e-sports could be an industry larger than traditional sports in a few years.
In fact, more people already tune in to YouTube or Twitch to watch a live game than the NBA (National Basketball Association) or Major League Baseball (MLB) each year.
If the success of traditional sport publications and television shows is any indication, Enthusiast Gaming could be huge. It might be the best stock for investors looking for an underrated growth story.