2021 has come with a vengeance. The second wave of the virus is roaring. At the same time, the stock market is soaring. Through all this, we investors must navigate our way. At the end of the day, it’s good to know we still have many value stocks to buy in 2021.
Without further ado, let’s talk about the best value stocks to buy in 2021. They’re very different in many ways. But they’re also very much the same in one big way — value. Let’s dig in.
BlackBerry stock: The Canadian tech stock that’s taking on the world
2021 will be a year like no other. This will be the case for obvious reasons. But also for the progress that will be made in connected cars. This progress will be driven in large part by BlackBerry (TSX:BB)(NYSE:BB). It is BlackBerry that has the cutting-edge technology. It is BlackBerry that is partnered with Amazon Web Services. BlackBerry will bring this technology to life.
The future of connected cars has always been bright. Today, it is even more so, because BlackBerry and Amazon Web Services have joined forces. Their partnership will standardize automobile technology and create an ecosystem. BlackBerry’s Intelligent Vehicle Data Platform (IVY) will work with all cars. It’s a major step forward in the ultimate goal of self-driving cars. In the meantime, we will see ground-breaking technology transform the driving experience. This ecosystem will drive innovation and growth.
BlackBerry stock has rallied significantly in the last month or so. Yet, with all the opportunity ahead, I still view this stock as a top value stock for 2021.
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Cineplex stock: The value stock that is screaming value?
Cineplex (TSX:CGX) might be considered a value stock. But it might also be considered a high-risk, high-stakes stock. It seems like Cineplex stock is somewhat of an “all-or-nothing” stock. It has been hit hard by the pandemic. It’s actually one of the worst hit.
Cineplex has made adjustments to its costs. It’s made adjustments to its leases. All of this buys it some time. But the situation is perilous. The million-dollar questions are simple. What will become of the movie exhibition industry after this prolonged shut down? How will Cineplex even survive until then? Is this just the last nail in the coffin for an industry that is destined to fail? I mean, there’s already been big competitive pressure from online streaming.
Today, Cineplex stock is a risky proposition. On the one hand, it might simply go under. On the other hand, if it can only survive, it may thrive as the year moves on. As people are vaccinated and things return to “normal,” people might be rushing to movie theatres once again.
Enbridge stock: A value stock that’s predictable and defensive
Not only is Enbridge (TSX:ENB)(NYSE:ENB) stock cheap, but it’s also yielding an incredible 8%. This is a very special situation. When a company that’s as predictable and defensive as Enbridge stock is yielding 8%, this is a clear buy signal.
Enbridge has a pipeline/utility business model that is safe and secure. A diversified mix of businesses and cash flow underpins this. Investment-grade customers also underpins this. And its financial strength will enable Enbridge to the weather the storm. In my view, Enbridge stock is a top value stock for 2021.
Motley Fool: The bottom line
Value stocks are hard to find in today’s market. In this article, I’ve highlighted three value stocks that might be of interest to those investors looking for top stock ideas for 2021. Their businesses are very different. But they all share one thing. That is, their stock prices do not reflect their full potentials.
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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.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Karen Thomas owns shares of ENBRIDGE INC. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and Enbridge. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.