Should people avoid investing in stocks due to repeated warnings of an impending market crash? Not everyone, however, is fearful or losing investment appetites amid the predictions. A downturn can also be money-making opportunities for income and growth investors.
Bargain hunters are still on the prowl following the most recent market selloff. A handful of attractive names are trading at absurdly low prices. You can take advantage right now and profit from the coronavirus dip when the stocks rebound or surge.
Pembina Pipeline (TSX:PBL)(NYSE:PBA) is the ultimate bargain at $33.55 per share. The year-to-date loss is 27.2%, yet it continues to draw attention. This $18.44 billion provider of transportation and midstream services for North America’s energy industry pays a 7.31% dividend. Likewise, pipeline stocks are defensive choices in the energy sector.
The stock’s underperformance belies the viability of this operator of oil pipeline assets. Analysts forecast a decent upside of 37.1% or a return to its 2019 year-end price in the next 12 months. Meanwhile, an investment of $25,000 will generate $1,827.50 in passive income.
Low crude and natural gas liquid prices and 9% decline in physical volumes caused the 61.9% decrease in net earnings for Q2 2020 versus Q2 2019. Management believes the quarter reflects the worst impact of COVID-19. The outlook in the coming quarters is positive as global energy prices rebound. Pembina expects to exit 2020 with a strong financial position.
Fantastic growth potentials
WELL Health Technologies (TSX:WELL) is among this year’s top-performers that you can purchase at a bargain. As of August 7, 2020, the price is $4.49 or 187.8% higher than $1.54 at the start of 2020. Had you invested $5,000 that time, your money would be worth $14,391.03 in the present.
This $584.32 million company owns that operates a portfolio of healthcare facilities has fantastic growth potentials. Its digital health applications will be the key growth drivers. WELL is Canada’s third-largest electronic medical records (EMR) service provider, with over 1,900 clinics and 10,000 doctors in the loop.
A new dawn is for this healthcare stock is at hand with the creation of “WELL Digital Health Apps” (WDHA). The subsidiary will focus solely on developing, investing in and unlocking opportunities associated with digital health applications. WHDA’s primary goal is to establish investments and commercial agreements with best-in-class digital health companies.
WELL is on track to achieve organic revenue growth after seeing a 918% increase in digital services revenue in Q1 2020. The company is about to consolidate and modernize clinical and digital assets within the primary healthcare sector. Investors should ride on the building momentum before the price soars through the roof.
Cheap but sound investments
Some businesses might never return to pre-corona levels or recover from the economic turbulence in 2020. But as in previous financial meltdowns, savvy investors will keep looking for profitable opportunities. Resilient companies will survive the short-term pressure, while new ones will emerge as appealing options.
Pembina Pipeline and WELL Health Technologies are not distressed companies because the stocks are trading at ridiculous bargain prices. The turnaround of the prominent pipeline operator is imminent, while the EMR service provider will thrive as digital health apps take root.
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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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.