Black Friday Is Coming: Which 3 Stocks Should You Buy?

Here are three stocks investors should buy this Black Friday.

| More on:
data analytics, chart and graph icons with female hands typing on laptop in background

Image source: Getty Images

Black Friday is a well-known day among consumers. This is a time when retailers mark down merchandise, causing a frenzy among shoppers. Although the stock market is unlikely to drop because of Black Friday, investors can still bring that “shopping-for-deals” mentality themselves. As of this writing, the broader market has been experiencing a selloff over the past week or so. This has given investors an excellent opportunity to buy shares at low prices. In this article, I’ll discuss three stocks investors should buy this Black Friday.

This stock has previously shown an ability to bounce back after a correction

The first stock that investors should consider buying on Black Friday is Docebo (TSX:DCBO)(NASDAQ:DCBO). Since mid-September, Docebo stock has been trending downwards. Today, it trades about 22% lower than its all-time highs. In any other context, consumers would jump at an opportunity to buy quality at such a great discount. Investors should look at the situation with Docebo similarly.

Last year, Docebo was one of the biggest winners on the TSX, gaining about 400%. A big reason for its excellent performance is the nature of its business. Docebo proves a cloud-based, AI-powered, eLearning platform to enterprises. In a world where remote working has become essential, it shouldn’t come as a surprise that investors have turned their attention to the company.

That massive gain that Docebo produced last year ended up hurting the stock earlier this year, as it needed time to cool off. To start the year, Docebo stock fell about 40%. However, it managed to recover over the year and eventually pushed to new all-time highs. Now, the stock seems to be falling once again. If history is indicative, investors may not have much more time to get in at a great entry point before Docebo stock starts recovering again.

This company will help power our society in the future

Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP) is a company with a lot of potential. It operates a diversified portfolio of assets capable of producing about 21,000 MW of power. This makes it one of the largest renewable energy producers in the world. After the completion of its current construction projects, Brookfield Renewable would more than double its current production capacity.

Despite all of those positives, Brookfield Renewable stock has not been able to perform very well this year. This could be attributed to a required cool-off period after the stock gained about 200% over the past two years. Today, Brookfield Renewable trades about 14% lower than its price at the start of the year. This is a stock in my own portfolio and position I would greatly consider adding to at these depressed prices.

A company that could be very busy on Black Friday

Last year, Shopify (TSX:SHOP)(NYSE:SHOP) made headlines after its stores managed to sell a combined US$5.1 billion over the Black Friday-Cyber Monday weekend. That indicated an increase of 76% year over year in total sales. Although in-store shopping has picked up tremendously compared to this time last year, Shopify stores should still see a lot of activity this Black Friday. Online shopping has penetrated the retail space a significant amount over the past year.

The Black Friday-Cyber Monday weekend will be an important one for Shopify, as its stores start preparing for the Christmas season. Like last year, Q4 should be very impressive for Shopify. If you’re hoping to enter a position in the company, I would get in before the rush of holiday shopping occurs.

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 Jed Lloren owns shares of Brookfield Renewable Partners, Docebo Inc., and Shopify. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends Docebo Inc.

More on Investing

Silver coins fall into a piggy bank.
Tech Stocks

How to Turn a $500 TFSA or RRSP Into $50,000

Are you looking to convert a $500 TFSA into $50,000? A little discipline and patience can help you achieve it.…

Read more »

Pot stocks are a riskier investment
Cannabis Stocks

5 Things to Know About Cannabis Stocks Before 2023

Cannabis stocks like Canopy Growth (TSX:WEED) are struggling, but there are positives to draw on as well.

Read more »

Stocks for Beginners

3 Best-in-Class Stocks to Build Long-Term Wealth

Looking for stocks that might create generational wealth over the long term? Here's a top growth, value, and income stock…

Read more »

TFSA and coins
Dividend Stocks

TFSA Couples: How to Invest for $777 of Passive Income Each Month

The TFSA or Tax-Free Savings Account can be used to buy and hold a portfolio of blue chip dividend stocks…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Investing in the Stock Market Could Turn Your $1,000 Into $100,000: Here’s How

The stock market can convert a $1,000 regular investment into $100,000 without making too risky bets. Here’s a simple strategy…

Read more »

Bank Stocks

3 Top Stocks to Buy Now in a Once-in-a-Decade Opportunity

Given their discounted stock prices, these three quality stocks offer a once-in-a-decade buying opportunity.

Read more »

Various Canadian dollars in gray pants pocket
Stocks for Beginners

Here’s an Absolutely Brilliant Way to Earn Passive Income

Here’s a simple and unique way to earn passive income that does not involve working more, buying a property, or…

Read more »

Make a choice, path to success, sign
Stocks for Beginners

Canadian Investors: 2 Once-in-a-Generation Buying Opportunities

You can grab these two once-in-a-generation buying opportunities in Canada right now to get super rich in the long term.

Read more »