When adding new stocks to their portfolios, many investors have certain thresholds in mind. They may be related to valuation, market capitalization, or the price of the stock. If that sounds familiar and your own pricing threshold is below $50 per share, you should look into three stocks for this month’s investing.
A telecom company
The largest telecom company in Canada and one of the best 5G stocks in the country is also the most generous dividend payer in the telecom sector right now. BCE (TSX: BCE), even though it has started reeling from the slump it has been in since mid-2022, is still heavily discounted and has lost over a third of its market value from its April 2022 peak.
The stock is currently trading at $47 per share right now but if it keeps climbing up the way it is, it may go beyond $50 per share in a matter of weeks.
A healthy recovery phase is reason enough to consider BCE, since it can lead to decent capital appreciation, especially if the stock manages to reach or surpass its last peak. However, another compelling reason to consider this blue-chip is its dividends. It’s offering a mouth-watering 8.4% yield right now, though it might shrink once the stock has gone up sufficiently enough.
A crypto company
Most crypto stocks in Canada trade below $50 per share, but Galaxy Digital Holdings (TSX: GLXY) is worth considering this June for two reasons. The first reason is the fundamental strengths of its business model. It’s a diversified crypto business with multiple revenue facets, including crypto asset management, digital infrastructure solutions, and crypto-based banking services.
The second, more short-term reason is that the Galaxy is going up at a relatively rapid pace, following the ascent of cryptocurrencies like Bitcoin.
The stock has already risen over 45% since the beginning of this year, and at this pace, it would get very close to doubling the money of its investors before the year is over. But it’s also important to keep in mind that it’s volatile, even when compared to other tech stocks that are volatile compared to the rest of the market.
An energy company
The energy sector in Canada is going through a rough phase right now and the index has seen a sharp decline in the last few days. It has even impacted Canada-based energy companies operating almost exclusively outside the country, like Parex Resources (TSX: PXT). The stock was already in decline and the current sector-wide downward pressure has accelerated the pace of its slump.
In a way, the slump is the reason to consider this stock. It’s already offering a juicy yield of about 7.2%, and there are two reasons why the chance of recovery may be slightly higher for Parex than many other Canadian energy giants.
The first is its undervaluation, reflected in the price-to-earnings of just under four. The second reason is its history. It has been one of the few energy stocks in Canada that didn’t go up rapidly in the post-pandemic market, which may help them survive once the correction strikes.
Foolish takeaway
The three stocks should be on your radar during the month of june. You can take your time buying Parex stock since it’s declining and you might be able to lock in an even more compelling yield. But the other two stocks are recovering and assuming these recoveries are going to be long-term, buying them soon might be the smart thing to do.
