Towards 2021 BlackBerry (TSX: BB)(NYSE: BB) I was at the top of my watch list. I argue that stocks were incredibly undervalued given their long-term growth potential, prior to the recent surge over the past few weeks.
In January alone, at some point the stock prices of tech companies rose by more than 250%. Such a jump definitely raises some warning signs.
Whether it’s stock manipulation or not, I’m still bullish on BlackBerry in the long run. The cybersecurity industry is one in which I own several shares and will add to that list this year. The increasing cybersecurity threats we see only underscore the importance of companies like BlackBerry.
BlackBerry was at the top of my watchlist heading in 2021, but fell far below the list after recent manipulated volatility.
These are the two companies on my radar that are set to put the BlackBerry spot at the top of my watchlist. Neither company is in the lucrative cybersecurity industry, but each is undervalued and has the quality you want. Long-term holding..
Bank of Montreal
Canadian banks have not been included in top-performing stocks for the past 12 months. The COVID-19 pandemic has put Canadian economies at low interest rates, damaging the profits of large banks in the short term. However, in the long run, Canadian banks are one of the most reliable banks. TSX Shares you own.
Bank of Montreal is still with 50% Bull Run Undervalued stock.. Banks are trading today with a very reasonable price-earnings ratio (P / E) of just over 10.
Valuations are not the only reason to acquire a stake in a Canadian bank. Each of the Big Five has the highest dividend yield that you will find difficult to match.
At today’s stock price, the Bank of Montreal’s annual dividend per share is $ 4.24, which is sufficient for a 4.3% yield. Banks also have an incredible payout ratio. It has paid dividends to shareholders for 190 years.
With futures price-earnings ratios well above 100, not all investors agree. Kinaxis (TSX: KXS) It is a value play. I underestimate tech stocks because they are 20% below record highs.
Before COVID-19 hit North America, Kinaxis’ share had increased by more than 200% over the past five years. When the pandemic first broke out, tech stock prices fell slightly, but then surged almost 100% in just three months.
After reaching the top in July 2020, stocks have been steadily declining. That’s why I put stocks on the radar. Kinaxis remains a top tech company, with ample growth potential and ready for the next multi-bagger run.
It’s as interesting as following BlackBerry this year, but some spots have fallen on my watchlist. I’m still bullish on the long term BlackBerry, but I don’t trust the stock in the short term. Also, if you are looking for value play, I think there are more deals.
If you’re looking for a lot, Canadian banks are a great place to start. Bank of Montreal trades in favorable valuations and has the highest dividend yield.
Kinaxis may be a bit too expensive for value investors, but growth potential must be more than compensating for high valuations.
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Stupid contributor Nicholas Dobrorka There are no positions in any of the listed stocks. Motley Fool recommends KINAXIS INC.
Two undervalued TSX stocks to buy before BlackBerry (TSX: BB)
https://www.fool.ca/2021/02/09/2-undervalued-tsx-stocks-to-buy-before-blackberry-tsxbb/ Two undervalued TSX stocks to buy before BlackBerry (TSX: BB)