One of the few stocks that became relatively unprofitable way before the pandemic is Cineplex (TSX:CGX). It reached its peak valuation around mid-2017 (when it became way too overvalued) and has spiraled down since then. What happened to it doesn’t completely fit the Netflix and Blockbuster narrative, but the rise of subscription service might be a major factor behind Cineplex’s decline.
Still, the stock is receiving a lot of attention nowadays, but not because it has become a good, attractive stock overnight, but because of what’s happening with AMC across the border. Thanks to becoming a meme stock, it has risen over 2,700% in 2021.
Many investors are speculating that Cineplex might become the next AMC, but instead of leaving things you chance, you might consider investing in a few other post-pandemic stocks that might have a better chance of capital appreciation.
A regional airline
One of the businesses that got decimated during and after the pandemic was the airlines. Even though Air Canada suffered through the worst of it, regional airlines like Chorus Aviation (TSX:CHR) weren’t spared as well. The airline is still trading at a 44.8% discount from its pre-crash valuation. While the stock has grown over 55% since the beginning of the year, it still has a long way to go, which is one of the reasons it might be a good post-pandemic stock to consider.
Unlike Air Canada, Chorus didn’t receive any government bailout, and it had to come up with enough cash to sustain its operation on its own. But one thing this small airline has going for it is that its revenue decline is not unbearably steep compared to its pre-pandemic ones, and has been turning things around since the second quarter of 2020.
The stock is a bit expensive right now, but if it has a shot at reaching its pre-pandemic valuation soon, you might be able to benefit from a decent amount of growth if you buy into the airline now.
A manufacturing company
Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP) was a great growth stock well before the pandemic. In the past five years, the company has grown its market valuation by over 2,800% between July 2016 and its February 2021 peak, and even then, it was a far cry from what the company’s glory days valuation looked like (in 2000).
The stock has declined a long way since its 2021 peak, but has started to rise again and has grown over 30% since mid-May.
It’s picking up where it left off, and if the company started growing at its usual pace, it holds the potential to multiply your capital by a sizeable number in less than a decade.
The company has an impressive global presence, with offices in four countries, and has penetrated several international markets. But the thing that makes it a really good long-term holding is the nature of its business, i.e., clean energy solutions (fuel cells).
It’s never wise to bet on something that might pay off compared to something that has a very strong possibility of paying off (if you can stick to it for long enough). Long shots like Cineplex might offer amazing payoffs, but it would not be a smart buy at the moment.
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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CHORUS AVIATION INC and Netflix. The Motley Fool recommends CINEPLEX INC.