A volatile market can be a scary thing. I’ve been hearing about people selling all they have in stocks as the markets dip further. But before you do that, I would seriously caution against it. We saw the stock market fall by 40% back in March, and it could happen again. But this doesn’t mean you should sell; rather, it means you should perhaps juggle your portfolio — and buy!
Even though future dips could happen, if you follow Fool rules, you should be buying and holding for long-term gains. If you have strong investments, you should see strong returns for years to come. Even with a small investment of just $300 for three separate smart stocks. If you’re willing to wait, here are three I would consider.
BlackBerry Ltd. (TSX:BB)(NYSE:BB) has completely switched gears since its days of creating the famous smartphone. The company has turned to creating cybersecurity, which it already had mastered for its BlackBerry mobile back in the day. The company now boasts cybersecurity for everything from your home office to your vehicle. In fact, it’s likely you could even have its QNX technology, a highly adaptable artificial intelligence software, in your car!
But that’s not to say that BlackBerry hasn’t been affected by COVID-19. The inability to create cars means the inability to put in its QNX software. This doesn’t mean the company’s revenue is sunk, however; it just means it’s delayed. Also, apart from QNX, the company actually did well. Cybersecurity is high in demand with people working from home.
The company actually saw profit of $0.02 per share for the last quarter. Shares are still below pre-crash value, but are well on the way back up. Even better, cybersecurity won’t just move aside with the end of the pandemic. BlackBerry is perfectly positioned to see a huge increase in demand and keep that demand strong for years to come.
Kirkland Lake Gold
It’s no secret that gold is having a moment. But what’s really exciting about today is that companies like Kirkland Lake Gold Ltd. (TSX:KL)(NYSE:KL) have a chance to beat out traditional gold streaming companies., making them hugely smart stocks Gold miners have been partnering and acquiring each other over the last few years, creating monster miners with mines around the globe.
Kirkland lake is no exception. The company is in a growth stage at the moment, reporting strong results during the second quarter. The company completed yet another acquisition during the quarter, and revenue more than doubled to $581 million. EBITDA also increased by 67% to $309.7 million.
This news has resulted in all-time highs for the company, reaching $73.31 per share just last week after the strong earnings report. Luckily, with all these acquisitions, it could only be the beginning.
Finally, another benefactor of the pandemic has been the gaming industry, and that includes Enthusiast Gaming Holdings Inc. (TSX:EGLX). The digital media company focuses on video game journalism, and with video games exploding with people confined to homes, Enthusiast Gaming has benefitted.
The company operates the country’s largest video-gaming expo, owns over 80 gaming websites, and boasts one of the most viewed North American gaming sites. During its last earnings report, Enthusiast Gaming saw record total revenue of $7.1 million, with its gross margin increasing to 46%.
This growth should continue as the company continues to acquire and partner with more gaming sites. The good news for investors is the stock is in its infancy, only coming to the TSX this year. With shares at just $1.50 at writing, there’s plenty of room to grow.
For more cheap options set to soar, check out these top five.
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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.
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry and BlackBerry.