Now that tax-selling season is about over, there could be many stocks due for a climb in January and the months ahead. The three stocks listed below have fallen by more than 25% this past year, and I wouldn’t be surprised if they have much stronger performances in 2019.
Dollarama (TSX:DOL) has been hit hard this year, as its performance hasn’t been as terrific as it has been in the previous year. And that’s not to say that Dollarama hasn’t been growing — it has achieved very respectable growth of 6% in its most recent quarter; investors are just no longer as excited about it. Dollarama has effectively become another retail stock with modest year-over-year growth, and so high multiples seemed unwarranted.
However, it could be a case of people pushing the panic button a little early on the stock. The dollar store still has an advantage over online retailers in its convenience, and its low price point is able to draw in many discount shoppers. If Dollarama surprises out of the gate with a stronger-than-expected quarter, this is a stock that could take off in a hurry, as it has declined by nearly 40% since the start of the year.
BlackBerry (TSX:BB)(NYSE:BB) has lost nearly one-third of its value in 2018, as its stock is back to levels not seen since early 2017. However, the company has been making good strides since then in growing its new business, and it’s coming off a very good quarter that should have generated some bullishness around the stock. Instead, it has continued to struggle.
It’s likely that it’s the markets overall that are holding BlackBerry down, as there’s no reason the stock should be continuing on this downtrend. And that’s what makes it a good stock for 2019, because it is overdue for a big recovery. Especially with security and privacy issues continuing to be in the mainstream and on many people’s minds, BlackBerry’s focus on that area will likely generate a lot of business going forward.
The company’s transition has been a slow and steady, but it looks like it might finally be paying off.
AltaGas (TSX:ALA) has seen its share price get cut in half in 2018, but things could look a lot different a year from now. The stock is trading well below its book value as a poor quarter sent the stock into a tailspin. It has rebounded after hitting a new 52-week low, and it might be ready to climb higher.
With the company recently slashing its dividend to free up cash flow and completing a big acquisition of U.S. company WGL Holdings, a lot of the noise from the past year is now out of the way. A strong quarter or two in 2019 could help the company win back investors and get its share price from out of the abyss.
AltaGas has normally been a very consistent performer, even amid downturns, and so I wouldn’t bet on the stock staying down for long. Investors will want to keep an eye on AltaGas, because once the stock starts gaining momentum, it could quickly make up for the losses it incurred in 2018.
