BlackBerry (TSX:BB)(NYSE:BB) and Cineplex (TSX:CGX) have been two of the most popular Canadian stocks to buy over the last year.
BlackBerry has easily been the most popular meme stock, whereas Cineplex has been one of the top recovery stocks to buy.
And while both stocks have been popular with investors, they’ve each had their ups and downs. So you may be wondering which is the best stock to buy now that they are both around $13 a share at writing.
BlackBerry stock has had a wild ride throughout 2021. The stock started the year around $8.50 a share, which at the time was considered slightly undervalued.
Then over the course of the next few weeks, it rallied massively, up to a high of $36 at one point, significantly more than many thought the stock was worth.
After selling off from those highs, BlackBerry stock eventually bottomed below $10 before another rapid rally saw it grow to $24 a share.
Today it has once again sold off and is trading at around $13 a share. So while the stock is certainly cheap in comparison to where it’s been this year, that might not necessarily mean it’s as cheap as Cineplex stock.
Of course, it could always rally again, but that’s not a reason to invest. Furthermore, the second rally had nowhere near the momentum of the first, and any further short-term price increases would likely follow that same trend.
If you are actually considering BlackBerry for an investment, it would be for its long-term potential as a software security business. BlackBerry is one of the best stocks to buy if you’re bullish on self-driving cars. However, much of this potential is still a long way off, unlike Cineplex, which is in the midst of a major recovery right now.
So while BlackBerry stock has growth potential, you may want to find a stock with more prospects for growth in the short run.
Cineplex is another highly popular Canadian stock that has investors’ attention. The entertainment company almost entirely relies on indoor gatherings to run its business, so it’s understandably been one of the hardest-hit stocks.
Canada’s economy has recovered well, though, and the country’s reopening is what Cineplex has been waiting for to start its recovery.
However, one of the reasons the stock continues to be cheap is due to the risks that persist, especially with the potential for a fourth wave.
Nevertheless, Cineplex stock certainly offers a lot more short-term potential than BlackBerry. And with the stock trading down roughly 65% from its pre-pandemic price, there is a tonne of long-term potential.
It’s not just its movie theatres that are opening back up, however. Cineplex’s entertainment venues will also contribute to the recovery in addition to its digital advertising business.
So in my view, Cineplex is a better buy than BlackBerry stock today. And if it continues to sell off in price over the coming weeks due to fear of a fourth wave, it will only continue to get more attractive for long-term investors.