3 Stocks Poised for a Bull Run

Even in a bear market, some stocks might be poised for a bull run. It might be their individual strengths and investor attention or a niche industry uptake.

| More on:
A bull outlined against a field

Image source: Getty Images.

The TSX Bull Run might be running out of momentum. The 3% drop in the S&P/TSX Composite Index is the most significant since the 3.8% drop in January 2021. What’s even more troubling is the curve of the drop. It’s not a sharp dip, but a slow downward slide, which might indicate shifting momentum. But it’s pure speculation at this point, and the market is just as poised to resume its Bull Run as it is to continue on the downward path.

If you are looking for stocks poised for a Bull Run in a market that can go either way, here are three companies that should be on your radar.

A restaurant company

Restaurant businesses, especially those that couldn’t adapt to or weren’t suited for deliveries (mostly fine-dining ones), suffered a lot during the pandemic. But for Recipe Unlimited (TSX:RECP) stock, the downfall started before the pandemic. The stock started dipping in the last quarter of 2020 and fell about 70% by April 2021.

Despite the fact that the restaurant business was still suffering, the stock made a wonderful recovery and has grown about 146% from its rock bottom valuation. The recovery momentum started to wane in May, but the stock might be ready for another Bull Run. The valuation is just right, and the company has already taken several harsh steps toward reducing operational costs. If the demand surges, the revenues and the stock could follow.

A lithium company

American Lithium (TSXV:LI) has already seen multiple Bull Runs in the past year. The stock has spiked three times since April 2021, and the latest brought the stock up about 80%. The company has an impressive presence in the Americas, and apart from lithium projects, the company also owns one of the largest undeveloped uranium projects in the world.

It might not have enough capital to pursue that arena now, but if more uranium powerplants start coming online around the globe, the increased demand might give the company leverage to raise funding for its uranium project development as well. Till then, it is poised for a Bull Run based on lithium demand for batteries, especially EV batteries.

A retail fuel and convenience store company

The gas prices in Canada are expected to reach new heights, and one of the energy businesses that might benefit from it is Parkland (TSX:PKI). As one of the largest independent fuel retailers in the country, Parkland owns, operates, or supplies one out of every six fuel stations in Canada. It also has a sizeable commercial operation as well as a convenience store chain.

The company also has an impressive international presence in 25 countries, but the bulk of it is in the U.S. Parkland stock was a decent grower before the pandemic, and it has had some trouble gaining traction since its sharp 50% fall during the pandemic. But if the demand for fuel rises and the prices soar to new heights, Parkland might get to ride the growth wave.

Foolish takeaway

The three stocks are all poised for a Bull Run, and each of them has different catalysts, triggers, and timelines. And if you invest in all three, you might essentially diversify your potential Bull Run. The three stocks are also from completely different industries, so the market macro factors that might empower or hurdle the growth will also be different.  

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

Dividend Stocks

2 Top Telecommunication Stocks to Buy on the TSX Today

Two telco stocks, but not the dominant industry players, are buying opportunities on the TSX today.

Read more »

worry concern
Dividend Stocks

Is Now Actually the Right Time to Buy BCE Stock?

Looking for a great stock to buy at a serious discount? It’s the right time to buy BCE (TSX:BCE) stock…

Read more »

Illustration of bull and bear
Dividend Stocks

Defensive Sectors: A Safe Haven for Canadian Investors in a Bear Market       

As uncertainty continues to increase in the stock market, buying stocks in defensive sectors can help protect your capital.

Read more »

question marks written reminders tickets
Dividend Stocks

Up 10% in a Month, Is Loblaw Stock a Buy?

Loblaw stock (TSX:L) has seen a strong increase in share price in the last month, but could more be on…

Read more »

top TSX stocks to buy
Dividend Stocks

How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $10,000

Investing in monthly paying dividend ETFs can help you generate a steady stream of recurring passive income for life.

Read more »

money cash dividends
Dividend Stocks

Passive Income: How to Make $215.56 Per Month Tax Free

Passive income is easy to make; all it takes is consistency and contributions, and, of course, the right dividend stock…

Read more »

Dividend Stocks

Why Utility Stocks Could Be Canada’s Safeguard Against Growing Rates

Utility stocks like Fortis Inc (TSX:FTS) can do well, despite rising interest rates.

Read more »

eat food
Dividend Stocks

The Best Canadian Food Stocks in December 2023

Investors can add the best Canadian food stocks to their portfolios for capital protection and stability.

Read more »