3 Bargain Stocks I Recently Bought More of

Bargain stocks are out there if you know where to look, which is why I took advantage of recent pullbacks to get in on easy returns.

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The TSX may be trading at all-time highs, but that doesn’t mean there aren’t opportunities for bargain stocks. In fact, there are high-growth stocks in the market from companies that entered 2021 strong but have since seen a solid pullback.

It’s these stocks that offer significant opportunities, and that’s why I have them on my watchlist. In fact, I picked up these bargain stocks recently for my own portfolio. Here are three in particular that I’m optimistic about for both long- and short-term investment.

Breakthrough bargain stocks

The healthcare sector has seen significant investment. But when combined with tech, telehealth companies seem to be at the high end of this investment. That’s especially true for WELL Health Technologies (TSX:WELL) — a company continuing to expand through acquisition.

This happened most recently when WELL stock made a massive acquisition in the United States. The company has already seen revenue grow year over year by 53% in the most recent quarter. However, as these acquisitions come online, expect revenue to soar during the next few years.

I plan on being a long-term investor, but saw the recent pullback of 25% as the perfect chance to see quick returns. Investors can still pick up bargain stocks like WELL stock for a discount at 5.2 times book value.

A cannabis disruptor

While other investors may be wary to buy up more cannabis stocks, I wasn’t after hearing of HEXO (TSX:HEXO)(NYSE:HEXO) and its recent raising of $1.2 billion. That money is set to go straight into growth projects — more specifically, into international expansion.

That expansion, management says, start with the United States. The company has already made several key acquisitions to enter the U.S. cannabidiol market. However, it’s legalization that every cannabis company is looking forward to. And while other companies aren’t seeking partnerships with major brands, HEXO stock is taking the exact opposite approach. The company wants to use those footholds to its advantage and get on the market sooner.

The company is of huge value at 1.6 times book value, making it one of the best bargain stocks out there. Shares are up 170% this year but recently when through a pullback of about 45% as of writing. So, yes, it’s another perfect chance for me to jump in.

The future of energy

Yes, clean energy is the future. But what type of clean energy? If you invest with Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP), it doesn’t matter. This company has 19,000 megawatts in a diverse range of clean energy assets around the world. So, no matter what the future holds for clean energy, Brookfield likely has it.

There was a solid jump with President Joe Biden announcing investment into clean energy, but again there has since been a pullback. But Biden isn’t the only one investing. Analysts predict $10 trillion in investment towards clean energy over the next decade around the world.

But again, the pullback has created an opportunity for hunters of bargain stocks. Brookfield shares are up 63% in the last year but down 18% since the pullback. But beyond that, the stock is up 617% in the last decade for a compound annual growth rate of 22%! That’s all on top of a 3.03% dividend yield. So, I bought up more of this stock and look forward to decades of returns.

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 Brookfield Renewable Partners, HEXO., and WELL Health Technologies. The Motley Fool recommends HEXO. and HEXO.

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