The TSX has many no-brainer buys that are worth considering regardless of the market conditions and their own performance because if you hold them long enough, the returns are likely to be significant. But even with these stocks, “timing” can increase your profitability prospects.
On the other end of the spectrum, some stocks are easy picks because of the market conditions or specific opportunities on the horizon.
If you have $200 to invest, there are three such stocks that you should consider looking into.
A gold mining stock
Market crashes usually push almost all stocks down, but some are more resilient than others, and they either don’t dip nearly as much as the rest of the market or rise back up quite rapidly.
Gold mining stocks like B2Gold (TSX: BTO) are more likely to be in that group compared to others because when the economy is weak and the market is going down, people look for safe-haven assets like gold that tend to retain their value, and the value of gold stocks go up.
The stock is currently trading at a mere $3.7 per share. The stock didn’t have a high price point anyway and it dipped over 12% in the last three weeks. The current slump is now coinciding with the markets and unfortunately, the gold prices are dipping as well.
Once they start going up, the stock may ride this to recovery and, later, a healthy bullish phase. If you buy now, you can lock in a solid 5.8% yield.
A utility company
Hydro One (TSX: H) is an example of a no-brainer stock in almost any given market. It has been growing almost consistently since mid-2018 and has risen roughly 124% by now. The growth itself is not exceptional, but the consistency is. Its fall during the pandemic (2020 crash) was also relatively mild, and the recovery was quite swift.
Part of this strength is from its business model. Not only is it a utility company, but it caters to a very specific market—rural areas of Ontrio.
It has almost 1.5 million rural customers in the province, and considering the infrastructure cost of establishing a utility presence in the vast rural areas, the company is unlikely to face any serious competition. It also pays dividends at a healthy 2.9% yield.
An energy company
The energy stocks in Canada experienced a solid resurgence in the post-pandemic era, and the whole energy index rose by a massive margin. Parex Resources (TSX: PXT) was one of the few unaffected by this phenomenon, partly because the company is based in Canada but operates primarily in Colombia.
Its dominant position in the country partly offsets the volatile status of the market, and the stock’s long-term growth has been quite decent, but only if you get in and out at the right time. Considering that the stock is trading at a 35% discount from its yearly peak, it might be a good time to add this stock to your portfolio.
Foolish takeaway
The three stocks are worth looking into right now but you can play it safe and wait for a while before adding them to your portfolio. The current market is a bit volatile and if it dips further, you might be able to buy them at even more aggressively discounted prices and get more value from your capital.
