The list of no-brainer stocks varies greatly from investor to investor and their preferences and risk tolerances. For some, only reliable and consistent stocks fit the bill. In contrast, certain stocks become no-brainers for others because of their price, discounts, and market conditions that might influence their performance or future prospects because of industry/market dynamics.
If you are from the latter category of investors, three stocks might qualify as “no-brainer” picks for you right now.
An iron ore company
Champion Iron (TSX: CIA) is an Australian company (headquartered in Australia) that operates almost exclusively in Canada. Their flagship and all exploration projects are in Quebec and Newfoundland and Labrador, mainly Quebec. The company specializes in low-contaminant, high-grade iron ore, making it a desirable “source” for many businesses that rely upon iron ore.
Iron ore stocks are different from other mining stocks, especially gold stocks that dominate the Canadian mining sector. Still, one trait they share is that the stock prices are often influenced by the demand for the underlying metal.
For Champion Iron, this leads to a cyclical performance. Currently, the stock is in a slump, and if the former pattern holds, the stock may go bullish in a few weeks, and the resulting climb may lead to decent returns in a relatively modest period.
A sustainable transportation company
While electric buses (essentially electric vehicles, or EVs) are a massive part of its business, NFI Group (TSX: NFI) isn’t technically an EV company. Its primary product and forte is zero-emission buses (ZEBs): buses/coaches that do not produce any emissions and are not exclusively EVs. Fuel-cell buses that rely on hydrogen as a fuel source also fall in this category.
The nature of its business makes it a good pick from an ESG (environmental, social, and governance) investing perspective, but that’s different from what makes it a no-brainer choice.
The stock has lived through its glory days. A solid bullish phase is more likely to be influenced by a combination of organic factors (new contracts, regulatory incentives, etc.) and positive market trends. The company is doing well on one front at least, and one of its subsidiaries just received a sizable order for 244 electric buses.
This alone may not be enough to trigger a bullish run, but it can be a precursor to upcoming business that may trigger solid organic growth in the company.
A digital healthcare company
WELL Health Technologies (TSX: WELL) is one of the most prominent names in Canada when it comes to the intersection of healthcare and technologies.
It describes itself as a provider-focused digital healthcare company that has developed an ecosystem of digital services and healthcare provider networks to support healthcare providers in various ways. This includes various virtual services and digital apps for patients and medical professionals.
The stock experienced exceptional growth during the pandemic, which makes sense as telehealth is one of its focus, and many patients and healthcare professionals started realizing its importance during the pandemic.
However, that bullish phase was followed by a sizable slump from which the stock is still struggling to recover, but the stock has been properly bullish in the last few weeks. Assuming the trend might continue, buying it at its current modest price of $4.6 per share might be an intelligent thing to do.
Foolish takeaway
The three stocks may not fit the description of a no-brainer stock for most conservative investors but when you are working with a relatively limited capital like $200, the opportunities they offer are compelling enough.
