3 Top TSX Stocks Under $25 to Buy This Summer

Here are three of my top stocks that investors should consider at these levels today.

| More on:
stock analysis

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

This summer, adding stocks with better potential risk-adjusted returns is a gift every investor should give themselves. Returns need to be taken in the context of risk. On that note, these three stocks are among the best risk-reward options on the TSX, in my view.

Let’s dive in.

WPT Industrial REIT

The economy is gearing up to recover from the impact of this pandemic. However, not every sector will be quick to bounce back to its previous state. For instance, there is much speculation that real estate classes like retail and office could continue to witness some level of decline moving forward.

However, these are just two real estate classes. Industrial real estate is among the few I think will continue to outperform. And WPT Industrial REIT (TSX:WIR.U) happens to have a best-in-class portfolio of such assets.

Indeed, warehouses and distribution centers are going to emerge as the backbone of the current e-commerce revolution. In the U.S., where WPT is focused, this trend is absolutely skyrocketing of late. I challenge readers to try to come up with a bearish thesis on this sector. It’s difficult.

WPT’s premium asset portfolio and relative valuation makes this stock attractive. Additionally, the company’s 4.5% yield is extremely attractive for those with income needs.

Algonquin Power

Investors with an eye on the perfect blend of growth and income should include Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) on their watch list. Algonquin is without question a top player in the Canadian utilities sector and a reliable bond proxy.

However, investors have been sleeping on Algonquin for one key reason. The company’s an emerging player in the renewable power segment. Via a series of acquisitions, Algonquin has slowly and quietly crept into this space. It’s a hybrid utilities/ESG play that’s not getting enough attention right now, in my view.

The growth Algonquin’s renewable power segment provides in combination with the defensiveness provided by the company’s regulated utilities business is a one-two punch that’s hard to find today. Accordingly, this stock remains one of my top picks.

BlackBerry

Perhaps the highest-risk option of the three, I think BlackBerry (TSX:BB)(NYSE:BB) has one of the best upsides of the group.

Indeed, BlackBerry has been entangled in some pretty intriguing meme stock hysteria earlier this year. With that speculative fervor seemingly over, investors now have the opportunity to assess this company on the basis of its growth profile and fundamentals.

And I can’t think of many companies better than BlackBerry given its valuation today.

BlackBerry is an active player in the high-growth sectors of today’s tech market such as software and cyber security. The company’s partnership with Amazon to develop BlackBerry IVY creates ample room for growth and sustained cash flow. Similarly, its transformational acquisitions of BlackBerry, like the 2019 Cylance deal, render it a force to be reckoned with in the space of artificial intelligence and advanced tech in general.

Indeed, there’s much to like about this stock, especially given its long-term growth prospects.

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 Chris MacDonald has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

More on Dividend Stocks

Canadian stocks are rising
Dividend Stocks

3 Ways to Invest in Canadian Real Estate Under $20

Real estate can be a great way to make passive income, but you certainly don't have to invest a lot…

Read more »

grow dividends
Dividend Stocks

TFSA Wealth: 2 Oversold Canadian Stocks for a Retirement Fund

These top TSX divided stocks look attractive today for TFSA investors.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Create $1,487 in Passive Income From a Top TSX Dividend and Growth Stock

This top growth stock on the TSX today could bring in almost $1,500 in passive income and triple your investment…

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Renters Will Rise in Number vs. Homebuyers in 2022

The greater majority of Canadian renters doubts their ability to purchase a home in 2022 due to surging inflation and…

Read more »

Man holding magnifying glass over a document
Dividend Stocks

West Fraser Stock: A Sneaky Growth Stock No One Talks About

West Fraser (TSX:WFG)(NYSE:WFG) stock has been a sneaky growth stock when it comes to its dividend.

Read more »

Dividend Stocks

Inflation Investing: 2 Top TSX Dividend Stocks to Buy Now

TFSA income investors can get dividend yields of better than 6% to help offset the impacts of high inflation.

Read more »

Canadian Dollars
Dividend Stocks

Got $1,000? Invest it in Real Estate

If you've got an extra $1,000, you should check out cheap REITs like Allied Properties (TSX:AP.UN) for juicy income.

Read more »

Community homes
Dividend Stocks

Real Estate: 2 Top Dividend Aristocrats to Own Today

The recent correction in the real estate sector has made several real estate stocks like these two attractive to income-seeking…

Read more »