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$1,000 Invested in BlackBerry (TSX:BB) in 2019 Is Worth This Much Today

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The Reddit rally that shot Gamestop stock through the roof also touched BlackBerry (TSX:BB)(NYSE:BB) briefly. The company saw its share price rise over 430% from November to its peak in January. It was a powerful rally till it lasted, and even though the spike didn’t reach Gamestop’s level, it would have given many old BlackBerry investors a great opportunity to realize exceptional gains from this company.

BlackBerry investments in 2019

The stock has come down substantially from its January peak, but it’s still trading at a price higher than its early 2019 price. If you had invested $1,000 in BlackBerry when 2019 started, it would be worth about $1,357 right now. Of course, if you had sold the stock when it was at its peaked in January, you’d have tripled your stake, and it would have been worth over $3,000.

If you’d bought BlackBerry stock in 2019 and you missed your window at selling it at its recent peak, selling it now would only earn you a small profit. But if you believe that the company might make a comeback, holding on to it for another peak might be a smarter idea.

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An alternative

If you don’t wish to park your money in BlackBerry, which might or might not pay off, there is a relatively more consistent growth stock you might want to consider. Morneau Shepell (TSX:MSI) is an Ontario-based HR and technology company that has been growing slowly and steadily for the past 10 years. Its growth has been relatively static ever since the crash, but before that, the company was a reliable growth bet.

It offers a 10-year CAGR of 17.1% and a dividend yield of 2.4%, which might not be too enticing, but coupled with the capital growth prospects of this company, it’s decent enough. The company has been growing its revenues consistently since 2012. The balance sheet of the company is quite strong, and its modest yield is supported by a relatively stable payout ratio (compared to its historical payout ratios).

The company generates the bulk of its revenue from Canada and the U.S. — about 95%, as per its 2020 second-quarter results. The best-selling service suit that is responsible for about two-fifths of the company’s revenue is Well-Being, which is followed closely by Administrative Solutions (34% of the revenue). The two other major business segments are Retirement Solutions and Health and Productivity Solutions.

One thing that you might find interested about Morneau Shepell is that as both an HR and a technology company, it might be well positioned for a future where more human resource tools are AI-based.

Foolish takeaway

Unlike BlackBerry, which might keep you waiting for a very long time and then only spike for a limited time, Morneau Shepell might offer more consistent growth. Despite its growth history, the company is not as aggressively overpriced as it could have been, and it’s still trading at a 5.3% discount from its pre-pandemic height.

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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 Adam Othman has no position in any of the stocks mentioned. David Gardner owns shares of GameStop. The Motley Fool recommends BlackBerry, BlackBerry, and MORNEAU SHEPELL INC.

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