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Full time economic recovery and reopening of operations is going to take longer. But a handful companies have the potential to bounce back from their lows. We present three Toronto Stock Exchange (TSX)-listed undervalued stocks, which have the potential to skyrocket. These stocks are a part of undervalued list presented by TMX group.
Investors may buy these stocks and hold them through 2021 because these stocks are poised to rebound post inoculation drive and economic recovery in Canada.
Barrick Gold Corporation’s (TSX:ABX)
This gold stock has dropped nearly 26 per cent in the last nine months. It has returned 14 per cent month-to-date (MTD). In contrast, the S&P/TSX Gold Index is down by 1.2 per cent in the same period.
The gold stock has declined almost 31 per cent to C$ 28.41 from its August 2020 peak of C$ 41.09 per share.
It has still maintained its return on equity of 10.23 per cent and offering earnings of C$ 1.69 per share. The large-cap firm distributed a US$ 0.09 per share of dividend for the previous quarter.
As per the company’s Q1 results release, it reported lower gold production against Q4 2020. As per its guidance, the gold miner expects higher production in the second half of 2021 than the first half.
Air Canada (TSX:AC)
Second on our list is this aviation stock, which has declined approximately 24 per cent from its March peak of C$ 31 apiece. It has increased by almost 4 per cent this year to C$ 23.64 per share.
Its major shareholders are hopeful of a massive recovery in airline stock. Analysts expect the national carrier stock will achieve a C$ 40 per share mark this year. Similarly, the federal government is infusing C$ 500 million in Air Canada’s equity to have better growth in the long run.
The airline has already entered into an arrangement with the Canadian government to offset its COVID-caused losses by availing low-interest rate credit facilities worth more than C$ 5 billion.
Image Source: ©Kalkine Group 2021
BlackBerry Limited (TSX:BB)
Our third pick is cybersecurity giant Blackberry that transformed its operations over a decade and is now focusing on its could-based software services. The stock has plunged as much as 70 per cent to C$ 10.84 per share from its 52-week high of C$ 36 apiece. However, it outperformed the S&P TSX Software Index in the past one year.
The cybersecurity stock has yielded a 28 per cent return year-to-date (YTD), led by its collaboration with Amazon Web Services. BlackBerry has invested US$ 50 million to boost its advanced vehicle software products. It also supports small-sized data-developer enterprises.
As per EODHD/Others data, the stock is bearish for the short-term period but still holds a bullish trend in the long run.
