Investors have likely been watching the market carefully during this rebound. While some areas are climbing, such as energy, others seem to be collapsing, like tech stocks. So, what’s an investor to do?
When it comes to investing, there are two things to keep in mind. You should always be looking to invest long term in companies that are strong. What you shouldn’t be moved by is the market. The market is an emotional place. While it can be painful, sometimes it’s better to put on blinders and add stocks to your watchlist so that when a drop happens, you can up your stake.
If you’re looking to up your stake in strong companies, then these three stocks are the perfect opportunity to make superior returns.
Suncor Energy (TSX:SU)(NYSE:SU) shares have climbed about 30% year to date but still have so much more to go. The company collapsed over the last few years, with an oil glut, trade war, and then a pandemic putting a halt to production. The company also made a series of investments in the Alberta oil sands that were pricey. This all caused the company’s returns to topple since 2018.
But today, this makes it a prime opportunity. Just ask Warren Buffett, who still owns 19.1 million shares of the company. Suncor stock offers a share price at about half what it used to be as of writing. It also offers superior growth through its pre-pandemic investments. Finally, it’s the largest fully-integrated energy company with years of growth ahead and oil prices rebound. If shares reach all-time highs again, a $10,000 investment would then be worth $18,000!
Shares in Lightspeed POS (TSX:LSPD)(NYSE:LSPD) didn’t seem to stop growing in the last year. However, with tech stocks reporting that last year was incredible, it means this year will be less so. That’s left Lightspeed stock with a share price that continues to drop from all-time highs near $100 per share.
But this company is far from done. The company saw insane revenue, as it made e-commerce sites available, whereas focus had been on retail and restaurant businesses. Now, every business knows it has to be online because of the pandemic. This recurring revenue is likely to keep growing, as businesses continue to sign up with Lightspeed. The company saw its customer base grow by 74% in its latest quarter, with revenue up 79% and 85% in recurring software and payments revenue, partially through its acquisition of ShopKeep and Upserve.
Lightspeed stock is still a winner for long-term investors, and they have a great chance to buy shares before it rebounds once again. Even today, if you were to buy $10,000 in shares, reaching all-time highs would turn that into $13,333 as of writing!
Facedrive (TSXV:FD) is the perfect stock right now if you want to ride the electric vehicle (EV) wave. Shares are up 81% year to date but down 51% since it hit a peak in the beginning of February. The EV ride-sharing company has found multiple ways of generating revenue, from delivering people and packages to medication and meals.
The company still has to release its final 2020 results, and that makes now the perfect time to buy up this stock before there’s a surge ahead of earnings if you’re looking for a quick bump. However, this is the perfect long-term hold. EV stocks are set to soar as investment continues. Facedrive is set up to take full advantage with other ride-sharing companies playing catch up. Shares are up 663% in the last year, but if you invested $10,000 today, you could see your investment double to $20,689 if the stock reaches all-time highs soon.
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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 Lightspeed POS Inc. The Motley Fool owns shares of Lightspeed POS Inc.