The S&P/TSX Composite Index incurred another triple-digit loss on Monday, November 12. The index is now down 6.5% in 2018 and 2.6% year over year. Major indexes in the United States also suffered deep declines, as the global sell-off has extended into November.
Investors should prepare for more volatility in the near term, but these turbulent conditions will create enticing opportunities for those with long time horizons. Today we are going to look at three stocks priced under $20 that are worth consideration today.
Barrick Gold (TSX:ABX)(NYSE:ABX)
Barrick Gold is the largest gold producer in the world. Shares fell 2.57% on November 12. However, the stock has bucked broader trends and is up 20% over a three-month span.
Gold equities have surrendered some of the gains in early November as the U.S. dollar continues to gain strength. The probability of a December rate hike from the U.S. Federal Reserve is hovering around 75%, which should prop up dollar strength into the next month. Analysts are expecting a gradual path in 2019 with two additional hikes projected as a conservative consensus.
U.S. economic growth is expected to slow into the next decade, and rising trade tensions will add to anxiety in domestic and international markets. Gold is a proven safe haven and an attractive speculative buy for investors waiting out the end of this business cycle. Barrick Gold also offers a quarterly dividend of $0.03 per share, representing a modest 0.9% yield.
Aurora Cannabis (TSX:ACB)(NYSE:ACB)
Aurora stock fell 1.71% on November 12 in the face of positive news. The company released its fiscal 2019 first-quarter results on the same day. The recreational cannabis legalization has been chaotic in the opening month, but surging demand bodes well for the largest licensed producers going forward. With a growing retail footprint and a strong base in Alberta, Aurora looks particularly attractive.
Aurora’s most recent report did not include sales results since legalization, but activity from July to September was strong. Revenues surged 260% year over year to $29.6 million, and kilograms sold rose 201% to 2,676. Aurora CEO Terry Booth has said that sales have surged following legalization and reported the roll-out as a “success.” Priced under $10 as of close on November 12, Aurora looks attractive, as it ramps up production and moves to grow it retail footprint nationwide.
BlackBerry stock fell 3.58% on November 12. Tech stocks have struggled mightily in Canadian and U.S. markets since early October. BlackBerry stock took most of its damage in the first week and fell to a 52-week low of $11.35 in late October. The stock is no stranger to volatility but has trended up since the hiring of CEO John Chen back in 2013.
In the second quarter of fiscal 2019, BlackBerry continued to show progress as its software and services billing grew double digits from the prior year. The company reported record high quarterly revenue for BlackBerry Technology Solutions on the back of its growth in the automotive vertical. BlackBerry boasts a promising footprint in the rapidly growing cybersecurity sector as well as in automated vehicle software. The stock is still attractive, as it is priced near 52-week lows as of close on November 12.
