BlackBerry (TSX:BB)(NYSE:BB) has been a Canadian stock at the top of many investors’ watchlists throughout 2021. The tech stock has seen multiple rapid price increases, creating a lot of optimism. However, investors know that BlackBerry stock isn’t worth a buy after its share price has seen a major rally.
So, it makes sense that as the stock price has been falling the last month, interest among investors has been growing.
BlackBerry has already shown potential to skyrocket rapidly and earn investors big gains. So, if you’re wondering whether it’s worth an investment today, here’s what to consider.
BlackBerry stock: Worth a buy at this price?
One of the reasons that BlackBerry stock is so popular, and was already even before these incredible rallies, is because the stock has a tonne of potential.
BlackBerry’s bread and butter has always been software security. So, when the company stopped making phones and switched to a predominantly software security stock, many knew it would offer some exciting opportunities.
It’s one of the most trusted names in an industry that only continues to get more important by the day. And while its business has solid operations today, much of the potential that the market expects will come in the medium term, as newer technology makes products like self-driving cars more common.
This will require the most critical software security, which is what most investors and analysts see as BlackBerry’s biggest potential.
One of the biggest problems BlackBerry still faces, though, is that the software security industry isn’t without competitors. So, betting on BlackBerry’s stock price to skyrocket long term is not necessarily a sure-thing investment.
Furthermore, as much as the stock has come down from the highs it hit in both rallies, it’s still somewhat overvalued.
There are, of course, some investors who may consider buying it for its potential to skyrocket in the short term once again. And while that could work out, it’s a risky strategy to consider.
So, rather than looking to buy BlackBerry stock at this price above its fair value, here’s one Canadian growth stock that offers far more potential in the short term.
A top Canadian growth stock to buy today
Rather than speculating on BlackBerry today, buying goeasy (TSX:GSY) for the long term makes a lot more sense. goeasy is one of the most impressive Canadian growth stocks lately, up nearly 900% in just the last five years.
goeasy is a specialty finance stock that offers loans to consumers with sub-optimal credit histories. The company has been extremely successful at keeping its underperforming loans low, which is a major reason it’s grown so fast.
The minimal write-offs have not only allowed the company to earn more money but have also given it the confidence to expand its loan book a lot faster.
So, goeasy investors have seen a rapid increase in sales and income in such a short amount of time. Despite this massive growth, though, goeasy stock is still just worth $2.5 billion, offering tonnes of long-term growth potential.
So, rather than speculating on BlackBerry’s stock price, I’d consider a position in goeasy. It’s easily one of the best Canadian growth stocks to own today, and it’s nowhere near as risky of an investment.
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 Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry.