The TSX Index has been ridiculously choppy of late, and the negative selling pressure is showing no signs of slowing down, at least not anytime soon. Still, the recent 5% pullback in the S&P 500 should serve as an opportune time for Canadian investors to top up their portfolios with some of the more beaten-down growth stocks, many of which are down way more than that of the market indices.
Beaten-down TSX stocks worth scooping up
Undoubtedly, some names have already corrected (that’s a 10% drop) some time ago. Others are in bear market territory, and a few names have already shed over 30% of their value. So, stop concluding that there are zero opportunities just because the TSX Index is just a few percentage points away from its all-time high. If you are, in fact, a stock picker, you have plenty of options on this side of the border. And in this piece, we’ll have a look at two growthy plays that I think could be overdue for an upside bump over the next 12-18 months.
Badger Infrastructure Solutions
Badger Infrastructure Solutions (TSX: BDGI), formerly known as Badger Daylighting, is a peculiar play that’s been absolutely battered in recent months. The company is in the business of providing mobile non-destructive soil excavation services. In essence, if a company needs buried infrastructure dug up or the means to layout new underground assets, Badger can step up to the plate to offer such services.
Now, digging up the ground is not a sexy business. It’s literally a dirty business, and some growth investors may find the name incredibly dull. Still, boring growth can be attractive growth, at least for followers of the outstanding Warren Buffett. Badger is easy to understand but is economically sensitive. Right now, the economy is booming, bouncing back from the coronavirus recession. Still, Badger stock has really sagged due to some weaker-than-expected margins in recent quarters among some other sub-optimal numbers.
I think the tides will turn, and Badger believers could be rewarded with potentially sizeable gains once management can solve their modest issues. The macro backdrop still looks good, so if a quarter of subtly better results can be clocked in, I think the stock could be in a spot to surge past $40.
BlackBerry
BlackBerry (TSX: BB)(NYSE: BB) is a Canadian tech titan that’s gone from smartphone dud to a provider of enterprise software and cybersecurity solutions. The latter industry is one of the hottest in the tech sector these days, with all the cyber threats that have jeopardized customers of some pretty major businesses.
Cybersecurity isn’t just an added expense anymore. It’s vital to the reputation of a company. A company’s reputation is arguably more valuable than its assets. Just ask Warren Buffett. It’s hard to develop, and it can even be hard to repair after a mishap.
As BlackBerry’s suite of enterprise products grows, I suspect it’ll be tough to keep BB stock suppressed. Analysts are mild to bearish on the name at $12 and change. Organic growth has been hard to come by amid COVID. Still, once management can get things moving in the right direction, I think industry forces could propel BlackBerry to a next-level amount of revenue growth. And with that, a stock that could be ready to steadily ascend higher.
