Has it happened to you that the stock you bought fell and the one you sold surged? The dip is not something to panic about, but be prepared for it. If you are confident about the company you have invested in, the dip won’t scare you but rather excite you. It is because the dip is the time to buy the stock at a cheaper price and get richer in the future.
Why is the stock market falling?
A stock market dip in March is seasonal as companies prepare for the tax-filing season. And this time, the market has been eyeing the interest rate decision as it has in the last two years. A 5% interest rate is breaking the backbone of consumer spending. And no rate cuts are expected till June. Economists did warn of a bear market and a mild recession in June. Many companies have put their expansion plans on the back burner only to survive the 5% interest rate.
Three best stocks to buy now and hold forever
A rate cut could reverse the bear trend and send many stocks to a recovery rally. And among them would be these three tech stocks.
BlackBerry stock
The struggling tech stock BlackBerry (TSX:BB) has been in a free fall waiting for a turnaround. However, the last three years only saw its revenue decline. The stock has lost 70% of its value since January 2022. Yet value investor Prem Watsa increased his stake in BlackBerry because its growth catalysts remain intact. The company’s product suite of QNX, IVY, and endpoint security is well-placed for a secure, integrated digital world. In the long term, it could benefit from the proliferation of the Internet of Things (IoT) due to the 5G ecosystem.
However, to make future growth come true, BlackBerry’s new chief executive officer (CEO) is restructuring its business, focusing on profitability. BlackBerry is working on its weakness, which is its go-to market strategy. The company will now operate the cybersecurity and IoT as two standalone businesses under BlackBerry’s umbrella. This new structure could accelerate decision-making and boost efficiency.
The initial signs of recovery were seen in BlackBerry as it won some government contracts for cybersecurity. A recovery in the business environment and consumer spending could bode well for BlackBerry, which has been struggling with tepid demand for automotive and reduced IT spending. A recovery rally could boost the stock price and a restructuring could lower cost and generate positive cash flow by March 2025.
An improvement in its fundamentals could send the stock up 100-150% from its 20-year low of below $3.5. You can buy this stock no and hold it. Even if it reaches the $12 mark in the next five years, that’s a 350% jump.
AMD
While BlackBerry operates in a highly competitive market, Advanced Micro Devices (NASDAQ:AMD) is in an oligopoly market. The stock is a buy before it hops on to the AI (artificial intelligence) rally. AMD has a portfolio of CPUs, GPUs, and DPUs (central, graphic, and data processing units) used in PCs, gaming, and data centres. Nvidia’s GPUs are unbeatable in performance, but AMD’s end-to-end solutions from the data center to the edge give it a larger target market in the 5G space.
BCE
BCE (TSX:BCE) is transitioning from telco to techno, focusing on cloud and security solutions, digital marketing and media. With the internet taking centre stage in the 5G world, Canadian telcos will have to adopt. Like BlackBerry, BCE is restructuring its business to focus on new-age communication. And like AMD, BCE is in an oligopoly market, making it indispensable.
Bottom line
The three stocks are buy-and-holds for two reasons: 5G and AI. Think about drone delivery, robotic manufacturing, smart security cameras, and autonomous cars. Each of these devices needs chips, and AMD has an embedded business unit that will make this a reality. Moreover, all the data collected from these devices will need better cloud computing and low-latency internet services offered by BCE and other telcos. Connecting this all is a safe passage of data transfer and an efficient IoT operating system, where BlackBerry is uniquely positioned.
