Finding Hidden Gems: Investing Wisely in a Bearish Climate

For investors seeking hidden gems to buy in this very uncertain environment, here are two of the best options to consider on the TSX.

| More on:
diamonds, hidden gems

Image source: Getty Images

Markets rise and fall all the time. But only when the stocks fall by 20% or more is the market considered bearish. Bear markets typically occur due to a significant change in market conditions. This can happen due to inflation, rapid increases in interest rates, etc. 

Conditions such as a bear market offer excellent opportunities to invest in high-quality stocks. This article will focus on two such hidden gems to invest in a bearish climate for a quality return on your investment. 

Newmont Gold 

Newmont Gold (TSX:NGT) has successfully completed the acquisition of Newcrest Mining through its subsidiary Newmont Overseas Holdings Pty Ltd. The acquisition announced its eligible shareholders to receive 0.400 units of Newmont Securities and was completed under a scheme approved by the Newcrest Board. 

With this acquisition, Newmont shares joined the ASX 200. However, being a U.S.-listed company, the merger has posed quite a challenge. For instance, Newcrest investors on the ASX have received CDIs that allow foreign-listed shares to trade on ASX. 

According to Palmer, Newmont’s chief executive officer (CEO), this merger is expected to strengthen the company’s portfolio and build the best collection of copper and tier-one gold assets. 

This acquisition resulted in a 1.18% gain in shares. Adding to the positive note, Newmont has ended the strike at its Peñasquito mine with an 8% increase in pay for each shift. 

Restaurant Brands 

When it comes to dividend payments, Restaurant Brands (TSX:QSR) is one of the top choices for investors. However, the blue-chip stock’s recent earnings have shown a drop in its revenue owing to Burger King’s slowed-down growth. Although, the company is spending $400 million to renew its Burger King business.

The report has both ups and downs. For instance, the company’s revenue grew 6.4% from its revenue of $1.84 billion in the past year. Additionally, the profit of $0.90 per share also topped analysts’ estimates. 

Restaurant Brands has recently announced that it plans to amend its Revolving Credit and Term Loan Facilities. This should provide ample liquidity for the company to continue to grow and improve financial flexibility. This move, in combination with what appears to be a rock-solid balance sheet, makes this a stock I think is worth owning for the long term at these levels. This says nothing of the company’s strong dividend yield and impressive growth outlook over the long term.

Bottom line

Both of these companies have delivered great returns in the past and have been favourites among investors. In this bearish market, add these two blue-chip stocks to your portfolio to have great returns on your investment when the prices are sky high. 

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 Chris MacDonald has positions in Restaurant Brands International. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

More on Investing

Dividend Stocks

Should You Buy This High-Growth Utility Stock Today?

While from a typically "boring" sector, this TSX utility stock offers unusually high growth potential if you are interested in…

Read more »

A close up image of Canadian $20 Dollar bills

3 No-Brainer Stocks to Buy With $100 Right Now

A small investment of $100 in these Canadian stocks could result in solid capital gains in the long term.

Read more »

Baubles On Snow With Snowy Christmas Tree
Dividend Stocks

3 TSX Stocks to Buy in December 2023

Here's why quality TSX stocks such as Jamieson Wellness should be part of your shopping list in December 2023.

Read more »

analyze data
Dividend Stocks

Adjusting Your Portfolio for the New Normal: Higher Interest Rates in Canada

The 5% interest rate is here to stay until the second half of 2024. It's time to adjust your portfolio…

Read more »

Value for money
Tech Stocks

2 Top Value Stocks to Buy in December 2023

With healthy growth prospects and discounted share prices, I am bullish on these two Canadian value stocks.

Read more »

stock research, analyze data
Dividend Stocks

2 Top Stocks to Buy With $500 Today

Investing in the stock market does not always require massive capital. You can begin with just $500 allocated to stocks…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Are These the Best Canadian Dividend Stocks for a High-Rate Environment?

Are you looking for some of the best Canadian dividend stocks to buy? Here are two top picks for decades…

Read more »

Gas pipelines
Dividend Stocks

Is Enbridge Stock a Buy for its Big Dividend?

Enbridge is down more than 10% over the past year. Should you buy the dip?

Read more »