2 Beaten-Down Canadian Stocks That Just Hit Massive Buy Signals

BlackBerry (TSX:BB)(NYSE:BB) stock and another top Canadian stock could make you very rich if you hang on before their next legs up.

| More on:
warning or alert

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

We’re all about sound fundamental analysis here at The Motley Fool. That said, I believe it can’t hurt to also take a look at the technical picture after you’ve deemed that a particular Canadian stock is a buy. In this piece, we’ll have a look at two timely names that are both fundamentally undervalued and technically poised to move higher over the coming months.

Enter WallStreetBets darling turned bust BlackBerry (TSX:BB)(NYSE:BB) and recycled paper products firm Cascades (TSX:CAS), two solid names I’d look to bet on as we inch into late 2021 and the potential abating of this horrific pandemic.


BlackBerry went bust about as quickly as it boomed thanks to the short-squeezing crowd over Reddit’s WallStreetBets forum. While the stock has lost its step, I still think it may be worth grabbing at this critical market crossroads.


Little has changed about the company over the past several months — only the price. Project IVY, which should be a major needle mover over the long haul, is still on the table. COVID-19 headwinds are due to fade, and CEO John Chen is still hard at work, doing his best to turn the ship around. It could take well over a year for Chen to make BB stock great again, though.

So, unless you’re going to be patient like Prem Watsa, who’s stuck by the name through years of underperformance, I’d steer clear, even as the auto sector continues lifting off on the other side of this terrible pandemic. The stock looks absurdly undervalued at just six times sales. Analysts aren’t fans of the name, with no buys as of right now. That said, if you want to get the most gains, you’re going to want to punch your ticket well before BlackBerry proves itself to the critics.

While I have no idea when BlackBerry will grow organically to justify analyst upgrades, I do think that now is as good a time as any to be a buyer of shares. The technical picture hasn’t looked this good in quite some time. A continuation wedge pattern looks to be in formation. If it comes to fruition, BB stock could be headed over 40% higher from today’s levels of $9 and change.

I think BB stock is as timely as ever. So, take the doubters with a grain of salt. BlackBerry is ready to run.


Cascades is a paper towel firm that manufactures and markets various paper products that tend to be made from recycled fibres. The company isn’t just a toilet paper or paper towel play to hoard ahead of the next wave of COVID-19. It’s actually a compelling long-term investment that’s insanely undervalued at these depressed levels ($13 and change). Moreover, recycling is a major plus for ESG investors. And after the stock’s latest brutal collapse, thanks in part to some unfavourable surging pulp prices, I think investors ought to be loading up before the next leg higher.

Pulp, paper, and other wood products, most notably lumber, are in short supply these days. The price is rocketing, and that’s not good news for the margins of firms that use such goods as inputs. Now down over 25%, I think the damage is overdone and find considerable value to be had, as pulp prices look to cool off and normalize.

The stock yields 2.4% right now with a 6.8 times earnings multiple. Technically speaking, Cascades stock looks ready to bounce back, potentially as much as 40%, as a continuation wedge looks to have formed over the past few weeks.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry and BlackBerry.

More on Tech Stocks

clock time
Tech Stocks

Now’s the Time to Load Up the TFSA With These 2 Top TSX Stocks

Here are two top TSX stocks that long-term growth investors may not want to give up on, especially at these…

Read more »

shopping online, e-commerce
Tech Stocks

Shopify (TSX:SHOP) Stock Recovers 30% From its 3-Year Lows: Should You Buy?

Shopify stock: Should you buy the dip or wait for more weakness?

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

What Market Correction? 2 High-Growth Tech Stocks That Are on the Rise

I don’t think it will be long before these two Canadian tech stocks are back to delivering market-crushing returns.

Read more »

grow dividends
Tech Stocks

Why Kinaxis (TSX:KXS) Stock Jumped 14% Last Week

Kinaxis Inc. (TSX:KXS) stock popped over the past week after adding yet another big company to its impressive stable.

Read more »

potted green plant grows up in arrow shape
Tech Stocks

TFSA Investors: Double Your Investments With These 3 Top Growth Stocks

Despite the volatility, I am bullish on these three stocks, given their solid growth potential.

Read more »

Arrow descending on a graph
Tech Stocks

2 Industries That Saw the Worst Decline Last Month

The TSX has been declining at a sharp angle since the beginning of June. And two industries (crypto and cannabis)…

Read more »

Dividend Stocks

TFSA Investors: Turn $1,000 Into $10,000 in 10 Years

10-fold growth within a decade is rare but not unheard of. You can capture this growth either by predicting a…

Read more »

Growth from coins
Tech Stocks

Got $1,000? Buy These 3 Under-$20 Growth Stocks to Earn Higher Returns

These under-$20 growth stocks can deliver solid returns in the long run.

Read more »