The market is still overvalued, in many investors’ opinions. That includes Warren Buffett, who has been selling off stakes in major companies to pick up value.
Even if you don’t have much cash on hand, by making small but regular investments, you can pick up valuable stocks for the long run. These three are perfect choices; each is trading at or below $20.
There has been renewed interest in the cannabis sector and specifically in Aphria (TSX:APHA)(NASDAQ:APHA). The company’s recent merger with Tilray makes it a great buy at today’s share price. Granted, it now trades just above $20, but there has been a bit of a dip of late. It’s likely to fall below $20 before climbing after earnings if you’re wanting to wait.
The company’s merger makes it the perfect buy for those looking for growth from one of the only profitable cannabis companies. In fact, after the merger is 100% complete, it will become the largest cannabis producer in the world, beating out Canopy Growth. Beyond that, the pair complement each other, giving more exposures to different product markets as well as countries that investors can look forward to.
Shares climbed 545% to all-time highs in the last year and have since dropped by 25%. That gives you a solid jumping in point. Meanwhile, shares are still up by almost 2,000% as of writing in the last five years for a compound annual growth rate (CAGR) of 83%!
Growth through acquisition seems to be a working strategy for CloudMD Software & Services (TSXV:DOC). The company continues to expand throughout Canada and into the United States, with the telehealth industry still booming. With these acquisitions coming in, revenue has been jolted to $60 million in the last year and could soar to triple digits in the next year.
Yet shares still trade around $2.50 as of writing. That’s after climbing 537% in the last three years and 420% in the last year alone! The pandemic has changed the way we seek medical care, and CloudMD looks well positioned to take advantage. I believe this stock could indeed triple this year if it continues doing what it’s doing.
Another company that’s had seen a massive increase in revenue during the pandemic is Northwest Healthcare Properties REIT (TSX:NWH.UN). The healthcare industry got a jolt of investment because of the pandemic and is likely to get even more investment now that the world realizes the necessity of these properties.
Northwest has a diverse range of properties around the world, and it’s brought in record-breaking revenue because of this expansion. The company recently reported that it has a 97% occupancy rate, with an average lease agreement of 14.5 years! So, if you want stability, it’s there in spades. On top of that, you’ll get a solid dividend yield 6.31% as of writing.
Shares in the stock are trading at about $12.50 as of writing, but that’s still up 100% in the last five years and just about 5% in the last year. What you get from this stock might not be exciting, but it’s stable — something we could all use in our portfolios.
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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 owns shares of Canopy Growth and NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.