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Cineplex vs. HIVE: Which Stock Offers More Potential Today?

Daniel Da Costa | August 6, 2021| More on:

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Currently, two of the most popular stocks in Canada are Cineplex (TSX:CGX) and HIVE Blockchain Technologies (TSXV:HIVE). While Cineplex is popular for its recovery potential, HIVE stock is popular for its incredible growth potential.

Either way, both stocks offer considerable prospects for growth over the next few years. So with these two top Canadian stocks offering significant opportunities, you may be wondering which stock is the best to buy today.

So here is what to consider if you’re weighing an investment in Cineplex stock against HIVE Blockchain Technologies.

Cineplex stock

Cineplex is certainly a stock with a tonne of potential. Similar to HIVE, it’s a high-quality Canadian stock with a great business model.

It was a company I was impressed with before the pandemic and is one I’m confident can perform well after the pandemic.

Unlike HIVE, Cineplex stock has a strong history of operations, so you know what you’re getting with an investment in the popular company.

The problem is, nobody quite knows when that will be. And so, while Cineplex has made a strong recovery in the last few months and has been able to open its movie theatre and entertainment venue locations, uncertainty continues to linger.

Investors are unsure whether more shutdowns are coming with a fourth wave in the fall, which has caused the stock’s recovery to pause once again.

The good news for investors is that Cineplex stock is ultra-cheap right now. However, it could continue to get cheaper in the near term, and in a current downtrend, you don’t want to catch a falling knife.

With that said, though, there is a strong potential for savvy investors who can buy the stock cheap over the next few weeks, especially if you’re willing to hold long-term and give it enough time for the stock to recover fully.

Just like HIVE stock, there is so much uncertainty around investment in Cineplex today. Therefore, a long-term investment is the only way an investment in Cineplex stock makes sense today or over the next few weeks.

There is a strong possibility that the investment will earn investors major returns still, though it’s not an investment without risk.

HIVE stock

HIVE stock is a considerably different investment than Cineplex. While many investors may choose the value investing strategy and consider Cineplex, for growth investors, HIVE is one of the best Canadian stocks around.

Not only is it exposed to the high-potential cryptocurrency industry, but the stock itself also has some of the best operations in the industry and has differentiated itself well from its peers.

While most crypto stocks who mine only mine Bitcoin, HIVE mines several popular cryptocurrencies, including one of the highest potential cryptocurrencies, Ether.

And lately, Ether prices have been rallying after it witnessed a significant upgrade this week called the London hard fork.

Mining stocks are typically always leveraged to these coins. So while these cryptocurrencies can gain upward of 5% or even 10% in a day, a stock like HIVE has the opportunity to see even faster gains.

Plus, the company holds a tonne of the coins it mines rather than selling them right away, which only increases its growth potential.

There’s no question that HIVE stock will be more volatile than Cineplex stock in the near term. But given all that’s going on with the pandemic, to this day, HIVE may have more potential over the medium term.

Whichever of these two stocks you do decide to buy, though, just ensure you make a long-term investment. Not only will this give you the most potential, but it will also protect you from the short-term volatility and headwinds each business faces.

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 CINEPLEX INC.

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