The TSX is recovering nicely from an otherwise disastrous 2020. Currently, stock prices are soaring amid improving expectations for commodities and other core sectors to the Canadian economy.
However, these two stocks are in sectors I think are being undeservedly sold off of late. Investors on a budget may want to consider these two stocks under $20. I don’t think they’ll be this cheap forever.
WPT Industrial REIT
Rising asset prices are boosting Canada’s real estate sector significantly. And WPT Industrial REIT (TSX:WIR.U), a $1.7 billion company, is in a great position to capitalize on this boom.
Well, I think industrial real estate remains undervalued. After all, industrial real estate is the backbone of the logistics & distribution business. This business supports the e-commerce boom we take for granted.
With a growth catalyst like this underpinning WPT’s real estate portfolio, it’s hard not to like this stock. Furthermore, WPT focuses its business operations in the U.S.
That’s not a small fact to consider.
The U.S. real estate sector remains undervalued relative to the Canadian real estate sector, in my view. Industrial real estate more so.
WPT has one of the more efficient management teams in its sector. This is a company with a prudent long-term strategy, and a healthy dividend yield of nearly 5%. The REIT’s occupancy rate is 97%, its trading at only six times earnings, and its balance sheet is among the best of its peers.
There’s a lot to like about this stock right now.
As far as spec tech goes, BlackBerry’s (TSX:BB)(NYSE:BB) remains a great pick for investors at these levels.
Yes, BlackBerry’s stock price was artificially inflated by the meme stock rally earlier this year. Now that that’s over and done with, investors can start to focus on the real value underpinning this stock. And there’s a lot to like in that regard.
BlackBerry’s cybersecurity-oriented software platforms are likely to be in higher demand moving forward. High-profile hacks continue to make this so. With the rise of IoT and connected vehicles, BlackBerry’s partnerships to develop its IVY platform position this stock incredibly well for growth.
This is still a “prove-it-to-me” story. However, those banking on CEO John Chen and the BlackBerry team to execute could be rewarded handsomely by buying this stock at these levels. Similar growth stocks to BlackBerry have much higher valuations today. This is an undervalued spec tech play with tonnes of upside. And I like it today.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool recommends BlackBerry and BlackBerry.