It’s hard to say with any degree of certainty whether investors should aggressively accumulate specific stocks in this current market backdrop. Indeed, there’s a very good case to be made that many of the top growth stocks investors are considering right now are generally overvalued. In this context, looking more toward value-oriented names may make more sense.
But I do think that for investors with a truly long-term investing time horizon (I’m talking about a decade or longer), the market is providing some unique opportunities that are worth considering. Right now, I see a lot more value in the TSX than other major indices, due in part to the fact that the TSX tends to be more overlooked than other global markets.
With that said, here are the three TSX stocks I think are worth considering from an aggressive accumulation perspective right now.
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Barrick Gold
The top gold miner globally, Barrick Gold (TSX:ABX) provides investors with unique upside to the rising price of gold and other precious metals.
As far as a market hedge is concerned, owning gold outright (or indirectly via top-tier gold miners like Barrick Gold) is a strategy I can get behind right now. There’s no telling if we’ll be in a recession a year from now or not (I actually think the odds are not titled in investors’ favour currently), but if we do get some sort of protracted downturn, Barrick Gold has proven its staying power and ability to provide upside in sideways or down markets.
Suncor
Another company I’ve argued is an undervalued bet in the energy space is oil and gas giant Suncor (TSX:SU).
The company earns most of its revenue and earnings from its oil sands operations in Western Canada, and will continue to be a key player in the North American energy independence discussion for some time to come. Thus, while we’ve seen some tariff-related concerns roil certain players (and demand concerns have brought down the price of oil), it’s also true that over the long term, we’re going to need more energy to power this incredible North American economy we enjoy.
For those looking for exposure to this sector at a forward price-earnings ratio of just 12 times, this is a stock worth considering in my books
The Metals Company
Now for a more aggressive pick to round out this list. The Metals Company (NASDAQ:TMC) is a Canada-based leader in the world of deep-sea mining.
The company collects deposits of nickel, cobalt, lithium and other metals used in battery formation off the ocean floor. Found as golf ball-sized deposits on the sea floor, TMC has developed a technology to bring these deposits to the surface and return the disturbed silt back to the ocean floor.
While there are always environmental concerns with every mining operation, the reality is that above-ground mining is also extremely detrimental to the environment. If we’re going to have the electrified future everyone is after, this is a stock that could perform extremely well given its miniscule market capitalization.
