Forget Dogecoin: 3 Cheap Stocks I’d Buy Instead

Instead of betting on Dogecoin, Canadians may want to target cheap stocks like Stantec Inc. (TSX:STN)(NYSE:STN).

Road signs rerouting traffic

Image source: Getty Images.

The crypto market has broken well into the mainstream over the past year. As exciting as the new market is, I’ve recommended caution, as investors could be burnt by its historic volatility. Dogecoin, a crypto started as a joke in 2013, has seen its price erupt over the past year. Instead of betting on this meme-inspired crypto, I have my eyes on three cheap stocks instead.

Why Dogecoin lost momentum this past weekend

Dogecoin’s price had dropped 6.4% over the past 24 hours as of early afternoon trading on May 12. There was significant optimism surrounding the crypto ahead of Elon Musk’s appearance on Saturday Night Live on May 8. Elon Musk had made a $1.5 billion investment in Bitcoin through Tesla, which led to a significant profit in the first quarter of 2021. He has not been shy when it comes to commenting on Dogecoin. However, in his appearance he referred to Dogecoin as a “hustle” in a scripted skit.

The seemingly innocuous skit had an immediate negative impact on Dogecoin’s price. It nearly halved its value in the hours that followed. Instead of falling victim to a comedy show, investors may want to consider snatching up cheap stocks on the TSX.

Investors should target cheap stocks in the renewable energy space

Northland Power (TSX:NPI) is an Ontario-based independent power producer that develops, builds, owns, and operates clean and green power projects around the world. Shares of Northland Power have dropped 17% in 2021 so far. However, the stock is still up 22% from the prior year.

The company is set to release its first batch of 2021 results tomorrow. In 2020, Northland Power saw sales climb 24% from the prior year to $2.06 billion. Meanwhile, adjusted EBITDA increased 19% to $1.17 billion.

Shares of this cheap stock last had a favourable price-to-earnings (P/E) ratio of 21. It possessed an RSI of 17 at the time of this writing. That puts Northland Power well into technically oversold territory.

Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP) is another renewable energy company whose stock looks cheap. It is engaged in the design, development, manufacture, sale, and service of proton exchange fuel cell products. Shares of Ballard Power have fallen 38% in 2021.

The company reported strong market activity in the first quarter, but its revenues were still down compared to the prior year. This is a long-term bet that will require patience from investors. Does it qualify as a cheap stock?

Ballard Power stock last had an RSI of 25. That means this stock is also oversold.

One more cheap stock I’d snatch up instead of Dogecoin

Stantec (TSX:STN)(NYSE:STN) is another cheap stock I’d look to instead of Dogecoin. The Edmonton-based company provides professional consulting services in the area of infrastructure and facilities in North America and around the world. Unlike the previous two stocks, Stantec has had a strong start to 2021. Its shares have climbed 29% in 2021.

In Q1 2021, Stantec reported net income of $11.2 million — up 28% from the prior year. Its contract backlog rose 5.3% from December 31, 2020 to $4.6 billion. Organic backlog growth was seen across all its segments.

Shares of Stantec last had an RSI of 32, putting it just outside technically oversold levels.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla.

More on Investing

Nuclear power station cooling tower
Energy Stocks

Why Shares of Cameco Are Powering Higher

Cameco (TSX:CCO) shares have surged more than 400% in the last five years alone, with more growth on the way.

Read more »

A bull outlined against a field
Stocks for Beginners

Bull Market Buys: 2 TSX Stocks to Own for the Long Run

Are you looking for stocks that could see a bull run for decades ahead? Here are two top TSX stocks…

Read more »

financial freedom sign
Dividend Stocks

Million-Dollar TFSA: 1 Way to Achieve to 7-Figure Wealth

Achieving seven-figure TFSA wealth is doable with two large-cap, high-yield dividend stocks.

Read more »

analyze data
Dividend Stocks

How Much Will Manulife Financial Pay in Dividends This Year?

Manulife stock's dividend should be safe and the stock appears to be fairly valued.

Read more »

food restaurants
Dividend Stocks

Better Stock to Buy Now: Tim Hortons or Starbucks?

Starbucks and Restaurant Brands International are two blue-chip dividend stocks that trade at a discount to consensus price targets.

Read more »

Diggers and trucks in a coal mine
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Cameco (TSX:CCO) stock could be a great long-term investment for Canadian growth seekers.

Read more »

Pot stocks are a riskier investment

Could Investing $10,000 in Aurora Cannabis Stock Make You a Millionaire?

Let's dive into whether Aurora Cannabis (TSX:ACB) could be a potential millionaire-maker stock, or a dud, over the long term.

Read more »

stock analysis
Energy Stocks

Is Enbridge Stock a Good Buy in May 2024?

Boasting high-yielding dividends and a stable underlying business, Enbridge (TSX:ENB) might be a great buy for your self-directed investment portfolio…

Read more »