Yesterday, the US Department of Commerce announced retail sales for July, which were below expectations. The rise in COVID-19 cases could have caused a larger-than-expected decline in retail sales, raising investor concerns about a slowdown in the economic recovery. So Canadian stock markets were in the red yesterday. Amid increasing volatility, here are three high-value stocks you can buy right now for superior returns over the next two years.
First on my list is Air canada (TSX: CA). The pandemic-induced restrictions had forced the company to ground its planes, severely undermining its finances and the price of shares. However, amid widespread vaccination, the economic environment is improving. The company have resumed its cross-border flights between Canada and the United States on August 9. It operates 220 flights on 55 routes to 34 destinations in the United States.
In addition, the company has also started its service to various destinations around the world since the beginning of this month. In addition, the company is also focused on expanding its cargo division by adding new aircraft amid growing demand. Meanwhile, Air Canada has also strengthened its financial position by raising funds through various lines of credit. Therefore, the company is well equipped to overcome this crisis and also to finance its growth initiatives.
Despite its good growth prospects, the company trades at attractive valuations. Its forward selling price multiple is 0.7. So i believe Air Canada offers an excellent buying opportunity.
The pandemic had also affected the entertainment industry, including the Cineplex (TSX: CGX), due to the closure of entertainment avenues. However, amid the easing of restrictions, the company has reopened all its screens since July 17. He has also launched a movie subscription program called CineClub for $ 9.99 a month. Meanwhile, the company is implementing its VenueSafe measures to make its avenues safe and comfortable for the family to see.
Along with these initiatives, the expansion of vaccination programs, pent-up demand, and the postponement of films from the year before to this year could boost Cineplex’s finances for years to come. Its cost reduction initiatives and strong financial position provide good growth prospects. Meanwhile, the company is still trading more than 60% below its January 2020 levels. Its forward selling price multiple stands at an attractive 0.6. Therefore, amid an improving business environment and attractive valuation, I expect Cineplex to deliver superior returns.
My final choice is Blackberry (TSX: BB)(New York Stock Exchange: BB), which is trading more than 66% lower from its January highs. The sharp decline offers excellent buying opportunities given its multiple growth drivers. By standardizing access to data across all vehicles, the company’s IVY platform enables developers to bring their solutions and products to market quickly. It could also help automakers to safely read data from vehicle sensors and provide in-vehicle services, thereby enhancing the driver and passenger experience.
Meanwhile, BlackBerry continues to strengthen its presence in the automotive sector, with 28 design wins in the quarter ending in May. The growth of software components in vehicles and the expansion of the electric vehicle market also offer excellent growth prospects.
The company has also strengthened its position in the growing endpoint security market with the launch of BlackBerry Optics 3.0, BlackBerry Gateway, and BlackBerry Jarvis 2.0. So, given its healthy growth prospects and a significant share price discount, I’m bullish on BlackBerry.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool advisor or premium service. We are Motley! Questioning an investment thesis, even one of our own, helps us all to think critically about investing and make decisions that help us be smarter, happier, and wealthier, which is why we sometimes post articles that may not be online. with recommendations, ratings or other content. .
The Motley Fool recommends BlackBerry and CINEPLEX INC. Fool contributor Rajiv Nanjapla has no position in any of the actions mentioned.