An investor can have various goals throughout their career. Most investors want to emulate the success of the Oracle of Omaha, Warren Buffett, and become wealthy by making intelligent market moves at the right time. You should know that it does not take much to build a small fortune for yourself.
The most successful investors in the world have found valuable companies they can invest in to leverage substantial capital gains. It is all a matter of finding the right stocks that can provide you with capital growth in the long run. The TSX had been trading at all-time highs before the pandemic struck. There were few opportunities to invest in stocks for long-term gains.
With the COVID-19 ravaging economies, most of the sectors also suffered, causing several stocks to spiral down to more accessible prices. I will discuss Canada Goose (TSX:GOOS)(NYSE:GOOS) and BlackBerry Ltd. (TSX:BB)(NYSE:BB) and why these two companies could be a bargain right now.
Forgotten phone manufacturer
There was a point where BlackBerry was a name that every businessperson revered due to the company’s incredible phones. However, the company faded out of the limelight with the advent of smartphone companies that dominate the market today.
While it may no longer be a provider of luxury phones for executives, BlackBerry is far from a company you can count-out.
The former smartphone provider is now relying on the cybersecurity sector for its income and is a heavyweight in the industry. The company’s Cylance division uses artificial intelligence to detect and address any attacks before they happen. It provides an excellent QNX anti-hacking platform installed in over 200 million vehicles worldwide.
BlackBerry completely transformed itself over the years, and its new focus on cybersecurity will likely take it to new heights. While the stock has already recovered 57.52% from its March 2020 bottom, it is in a position to see further capital gains. Trading for $6.49 per share at writing, BB looks like a bargain.
A beaten-down retailer
Canada Goose is among my favourite growth stocks. The retail giant was trading at more than 150 times earnings at one point before the pandemic — an impressive figure for a retail company. The pandemic hit and devastated every sector. Canada Goose was among the retail companies that suffered from the downturn.
Despite the hardships in the economy, this company is still profitable. In its most recent quarterly earnings report, Canada Goose entirely defied analyst expectations by posting an earnings-per-share of $0.02. With everything going on in the country, analysts expected GOOS to post a loss.
It clearly shows that despite being beaten-down, GOOS can ride the wave. On the other side of the pandemic, it has all the room it needs to grow. Before the pandemic struck, Canada Goose was becoming a massive international entity with a 60% growth in international sales each year. Its sales in North America grew by 20% to 30% each year.
A company that’s profitable in this hostile economic environment can only grow massively in the long run after the pandemic. Its $30.67 per share value is quite attractive at writing.
While the market uncertainty is not ideal, it’s certainly opened up opportunities for investors to find excellent stocks at a bargain. If you can add enough of the right stocks to your investment portfolio amid the uncertainty, you stand to gain massive profits with a recovery in the economy.
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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.