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3 Stocks to Buy With $100

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In a volatile market, you want to keep your portfolio safe — that is, for the most part. There are plenty of strong, blue-chip stocks out there that are perfect if you want to buy low and hold for decades. But there are some that still provide a question mark.

In that case, it’s true there is the opportunity to make a killing in a short period of time. However, there is also the chance you could lose everything you’ve put in the stock. There are many companies going bankrupt during the pandemic, so you have to be careful.

A good course of action is to put just $100 in those stocks you’re not quite sure about. That cash won’t break the bank if you lose it all, but it could also be a window into how the stock will perform in the future. Then you can always increase your stake in the company.

So, here are three stocks I would consider putting $100 into and seeing what happens.

Air Canada stock

Of course, the first opportunity everyone is talking about is Air Canada (TSX:AC). Air Canada stock dropped from all-time highs back in February to lows not seen in years. The company came back from the ashes back in 2012, rising 5,630% since its all-time lows! It has since reinvested in its fleet of aircraft, buying up fuel-efficient airplanes, getting rid of inefficiencies, and reinvesting in the Aeroplan program.

But all that cost money — money the company probably would have gotten back quickly if not for the pandemic. Now, Air Canada is in a $10 billion hole of debt, which is climbing each and every quarter as flights remain grounded for the most part. It’s going to take a long time to climb out, but here’s the thing: when it climbs out, it’ll soar higher than ever before. So, if you have $100 to put aside, it could be worth it to see what happens over the next few years.

Suncor

Another company to consider is Suncor Energy (TSX:SU)(NYSE:SU). Suncor may have major investors like Warren Buffett holding onto it, but Suncor stock has still slumped to 52-week lows amid the pandemic. That’s despite being Canada’s largest fully integrated energy company. That means while production may have slowed, it still has marketing, downstream assets, and other areas to pick up the slack.

Of course, the problem is long term. Shares should bounce back in the next few years, but after that there could be a major shift towards renewable energy sources. Yet Suncor has already invested in wind farms, so it could be preparing for the inevitable. Again, while it might be down from the last few years, just $100 could totally flip around in the years to come.

Enbridge

It’s a similar situation for Enbridge (TSX:ENB)(NYSE:ENB). The company was flying high, with pipeline projects set to come online in the next few years. Then the pandemic hit, along with an oil and gas crisis. With renewable energy resources also becoming the wave of the future, it has many people wondering if Enbridge can bounce back.

Here’s the thing: while renewable is the future, oil and gas won’t disappear overnight. There will be a rebound in oil and gas as pipelines become available, and the glut comes to an end. Then Enbridge stock will soar. When it does, I would sell it before another crash happens, with the government investing in renewable energy.

However, for now, it provides a strong investment opportunity along with a solid dividend supported by long-term contracts. You can’t go wrong with a $100 investment.

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Fool contributor Amy Legate-Wolfe owns shares of AIR CANADA and ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge.

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