The TSX continues to trade near all-time highs, and it has some investors worried that a stock market crash could be on the way. However, don’t let fear drive your investment strategy. When it comes to investing, it’s always a great time as long as you can find the right stocks to meet your goals.
You don’t even need much cash on hand. With just $100, you can make strong returns by drip-feeding into cheap, valuable stocks. These value stocks are exactly what you should be looking for in a recovery market. So, let’s look at three options to consider today.
The tech industry was on a tear in 2020 and continues to be in 2021. Yet shares in Real Matters (TSX:REAL) peaked back in August and have since fallen back. This is baffling to me, as the insurance and mortgage industry has seen an enormous boost, helped by this company’s software.
With interest rates remaining at serious lows, many people have chosen to get new rates on their mortgages and insurance. This includes in the United States, where the company receives 90% of its revenue. That means the company is due for a huge turnaround, as it continues to post record-setting earnings again and again.
Shares climbed 164% last year but have since fallen 48% as of writing. That leaves a great point to jump in on this stock and hold out for a serious rebound.
The excitement has worn off for BlackBerry (TSX:BB)(NYSE:BB), but don’t let that stop you from investing in this company. The news that sent shares soaring is still the same today. Electric vehicles (EV) will be using the company’s QNX software to redesign fleets of cars over the next decade. That remains true no matter how you look at it.
The company’s partnership with Amazon Web Services also has investors drooling, and it’s why now is a great time to buy this stock before it starts making even more announcements. If you want to take advantage of the EV market but don’t want to pay an enormous price tag, then BlackBerry is your choice.
Shares in the company climbed to $36 before falling back from the excitement. As of writing, shares trade at about $13.50. That’s a drop of 63%! So, again, even just a small stake to see what happens could deliver stellar returns as EVs grow in use.
Finally, oil prices continue to climb during the recovery. That leaves the demand for that oil and gas climbing as well. It’s why oil and gas companies like Enbridge (TSX:ENB)(NYSE:ENB) continue to see share growth right now. But there are even more reasons why you should consider this stock.
Enbridge is supported by long-term contracts that will keep cashing flowing for decades. It has a stellar balance sheet that should leave investors sleeping well at night knowing all its growth projects can be funded. And those growth projects are some of the first pipelines that will get online compared to its competitors. So, growth is in the future for this company as well.
Yet shares remain low compared to all-time highs in the $60 range back in 2018. Since that time, shares have fallen by 30%. Yet shares are already up 10% year to date. So it might be a great time to seize the opportunity before this stock starts to really climb.
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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 Amy Legate-Wolfe 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, BlackBerry, and Real Matters Inc and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.