Here Are 3 More Stocks That Can Make You Filthy Rich (and That No One Else Wants)

Hunting for riches in 2019? This group of beaten-down stocks, including Canada Goose Holdings Inc. (TSX:GOOS)(NYSE:GOOS), might provide the value you’re looking for.

Hi again, Fools. I’m back to highlight three stocks that fell sharply last week. As a reminder, I do this because the biggest market gains are made by buying quality companies

  • during times of extreme market turbulence;
  • when their long-term potential is being ignored; or
  • when they’re available at well below intrinsic value.

The S&P/TSX Composite Index sank another 4.5% last week, so there should be no shortage of attractive value plays to pounce on.

Let’s get to it.

Shop drop

Kicking things off is Shopify (TSX:SHOP)(NYSE:SHOP), which dropped 11% last week. Shares of the cloud-based ecommerce technologist are now off 23% versus a loss of 17% for the S&P/TSX Capped Information Technology Index.

Triggering the recent downturn was a dilutive secondary offering by the company. Specifically, it’s an offering of 2.6 million Class A subordinate voting shares at $154 per share.

On the bright side, Shopify’s operations remain strong. In Q3, EPS topped expectations by $0.07 as revenue soared 57.5% to $270.1 million.

“Solid execution and continued rapid growth drove our strong results in the third quarter,” said CFO Amy Shapero. “We’re well positioned to close 2018 and enter 2019 with excellent momentum.”

With the stock now off nearly 30% from its 52-week highs, it might be an opportune time to bet on that momentum.

Premium pick

Next up, we have Premium Brands Holdings (TSX:PBH), whose shares sank 7% last week. The food distributor is now off 37% over the past year versus a flat return for the S&P/TSX Capped Consumer Staples Index.

Trade uncertainty has weighed heavily on the stock in 2018, but there’s reason to be optimistic about the new year. In the most recent quarter, adjusted EPS climbed 22% as revenue spiked 50% to a record $835.5 million.

“I can say with full confidence that our long term prospects have never been better,” said President and CEO George Paleologou. “In fact, we now have more major new growth initiatives in our pipeline than we have ever had in our history.”

At a solid dividend yield of 2.6%, that long-term potential seems too tasty to pass up.

Cooked goose

Rounding out our list is Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS), which plunged a whopping 18% last week. Shares of the winter jacket specialist are still up 50% over the past year versus a loss of 21% for the S&P/TSX Capped Consumer Discretionary Index.

The brand has become the target of a boycott in China, ignited by Canada’s arrest of Huawei Technologies CFO Meng Wanzhou. China represents about 30% of the world’s luxury market and is a significant part of Canada Goose’s long-term growth plans, so it’s no surprise that Mr. Market is concerned.

That said, Canada Goose’s financials and growth rates remain rock solid. With the stock now off 40% from its 52-week highs and trading at a forward P/E in the low 30s, it’s tough not to see this China trouble as anything else but an attractive long-term buying opportunity.

The bottom line

There it is, Fools: three recently battered stocks worth looking into.

They aren’t formal recommendations, of course. Instead, view them as a starting point for further research. Sinking stocks can keep sliding for a prolonged period of time, so plenty of homework is required.

Fool on.

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.

Brian Pacampara owns no position in any of the companies mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and Shopify. Shopify is a recommendation of Stock Advisor Canada.

More on Investing

3 colorful arrows racing straight up on a black background.
Investing

1 Canadian Stock Ready to Surge Into 2025

Canadian Natural Resources (TSX:CNQ) stock is a sleeping dividend giant that may be about to wake up.

Read more »

Tractor spraying a field of wheat
Investing

Is Nutrien Stock a Buy for its 4.7% Dividend Yield?

Nutrien (TSX:NTR) is a well-known defensive commodities play. But is this stock worth buying for its dividend yield alone?

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

So You Own Shopify Stock: Is it Still a Good Investment?

Shopify (TSX:SHOP) stock has had a run, but there's still room to the upside.

Read more »

Paper Canadian currency of various denominations
Investing

The Best Stocks to Invest $2,000 in Right Now

Do you have some extra cash to spare? Here are three Canadian stocks to add to your watch list today.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Friday, November 22

Continued gains in gold, oil, and natural gas prices could give the commodity-focused TSX benchmark a boost at the opening…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

Hourglass and stock price chart
Stock Market

It’s Not Too Late: Invest in These TSX Growth Stocks Now

Solid fundamentals of these top TSX growth stocks could help them maintain strong upward momentum in the years to come.

Read more »