When it comes to investing, what to buy is the most important question you need to answer, but when to buy is crucial as well. If you are buying for long-term (like a few decades), an overvalued buy might not move the needle too much against you, but it’s still a good idea to make a move when the stock is fairly or undervalued.
That’s not the only “when” that matters. If you are a “seasonal” buyer (literally), you might consider adding a few stocks to your portfolio before the winter comes.
A mobility technology company
Magna International (TSX:MG)(NYSE:MGA) is one of the largest corporations in the car-making industry in Canada. It has a market capitalization of $28.6 billion and an impressive global footprint (28 countries in 5 continents). The company produces complete vehicles, and the total number of cars that have rolled off its production line is over 3.7 million. Still, its forte is the technology and other automotive solutions it offers.
While the production line includes several solutions related to seating, exterior, and other structures, the company also focuses on electrified powertrains. And thanks to its magnitude and international presence, this focus on the cars of tomorrow renders it a powerful player in the industry. And if you buy now, you can grab the company at a fair price.
A private banking company
Tech stocks tend to be overpriced and volatile, but they also offer better growth potentials than the stocks from many other sectors do. Nuvei (TSX:NVEI) is an example of growth that’s characteristic of tech, although the growth is not exactly time-tested. The company only started trading on the TSX in 2020 and has just completed its first year on the exchange.
In that year, the stock has risen almost 265%, and though there is a spike in its progress, there is no considerable dip. The Montreal-based company already had an impressive international presence, a decent number of solutions with the Nuvei name tag in the financial market, and a potent growth strategy. The company recently bought Paymentez, a company with five million customers in Latin America, solidifying its presence in the region.
A supply chain software company
Descartes (TSX:DSG) markets itself as one of the companies that “…move the world,” and the fact that it offers one of the top global supply chain solutions endorses that claim. The company provides a wide range of solutions in the supply chain realm, which has been a hive of activity thanks to e-commerce for a few years now.
From connectivity and messaging (for B2B) to fleet routing, the solutions Descartes offer covers the whole delivery process (from order placement to last leg delivery). It has over 20,000 customers around the globe.
The stock has been a decent grower for some time now, but the post-pandemic market has aggravated the pace quite considering. In the last five years, the stock returned over 276% to its investors.
Only one of the three companies is currently trading at a fair price. Both Descartes and Nuvei are expensive, even from a tech stock’s perspective. Still, they pack a powerful growth potential, and thanks to their business model, they are likely to stay profitable for decades.
The two tech stocks and Magna are worth adding to your portfolio now before the long winter freeze comes.