Every investor has a slightly different approach to picking stocks, managing portfolios, and even diversifying away from the risk. The approach is influenced by several different factors, including an investor’s personality and personal biases. But there are a few things almost all investors understand (and agree upon), and one of them is that perfect opportunities (like the perfect time to buy a great stock) are quite rare.
So, instead of waiting for perfect opportunities to appear, you might consider swallowing the relatively bitter “valuation” pill every once and a while and buy great stocks as soon as you identify them as great stocks.
An airline
Cargojet (TSX:CJT) has carved a name for itself in the cargo industry. It was one of the best growth stocks on the TSX before the crash, but things have been relatively shaky since the stock peaked at the end of 2020. The share price has come down over 27% since its peak in November 2020, and it might slip down even further before regaining momentum and growing as aggressively as it was before the pandemic.
The revenues and net income have been growing quite consistently (year over year) for the last three years. The financials are strong, and the company is ready to take the next step: international expansion. There are speculations that Cargojet might partner up with a U.S. airline to get an Air Operator Certificate there.
The airline is having some trouble with its pilots lately and has threatened to move part of its operations across the border if it’s not granted certain exceptions. As an investor, you might want to consider Cargojet before it evolves further.
A software company
Ceridian HCM Holding (TSX:CDAY)(NYSE:CDAY) is a U.S.-based software company that owns Dayforce, one of the best Human Capital Management (HCM) software currently available in the market. It has a market capitalization of $15.8 billion and a strong balance sheet. The company caters to a wide variety of industries, and its platform is quite popular among large organizations.
Ceridian’s stock has been declining slowly but consistently since the beginning of 2021. We can chalk it up to the general decline or slump the tech sector has been experiencing here as well as across the border. The financials are steady and growing at a relatively modest pace, and its recently announced first-quarter earnings matched estimations.
The company is expected to gain more business from its European market, which might give a boost to the stock as well. Right now, it’s at a 24% discount from its recent peak; you might want to consider it before it takes off.
A royalty and streaming company
Metalla Royalty & Streaming (TSXV:MTA) is a Vancouver-based royalty and streaming company that focuses on gold and silver royalties. It has a market capitalization of over $528 million and trades in the junior exchange. The company offers its investors a relatively “shielded” exposure to the precious metals (via royalties and streaming).
The stock has been growing at an amazing pace, especially in the last five years. Its five-year CAGR is 88.3%, which is enough to more than double your capital in fewer than three years. The stock dipped a bit from its recent peak, but it’s already growing at its usual pace.
Foolish takeaway
Not one of the three great stocks is currently undervalued or even fairly valued, but if you keep waiting for them to become more attractively valued, they might only become more expensive and grow out of your reach. So, instead of waiting for a perfect opportunity that may or may not arrive, you might consider adding them to your portfolio whenever you have adequate liquidity.
