2 Stocks That Are an Absurd Bargain Right Now

Analysts are warning of another crash even as the stock market hasn’t fully recovered from the recent one. The Pembina Pipeline stock and the WELL Health Technologies stock are the bargain buys in the corona dip that are well-positioned to rebound soon.

| More on:

Should people avoid investing in stocks due to repeated warnings of an impending market crash? Not everyone, however, is fearful or losing investment appetites amid the predictions. A downturn can also be money-making opportunities for income and growth investors.

Bargain hunters are still on the prowl following the most recent market selloff. A handful of attractive names are trading at absurdly low prices. You can take advantage right now and profit from the coronavirus dip when the stocks rebound or surge.

Defensive pipeline

Pembina Pipeline (TSX:PBL)(NYSE:PBA) is the ultimate bargain at $33.55 per share. The year-to-date loss is 27.2%, yet it continues to draw attention. This $18.44 billion provider of transportation and midstream services for North America’s energy industry pays a 7.31% dividend.  Likewise, pipeline stocks are defensive choices in the energy sector.

The stock’s underperformance belies the viability of this operator of oil pipeline assets. Analysts forecast a decent upside of 37.1% or a return to its 2019 year-end price in the next 12 months. Meanwhile, an investment of $25,000 will generate $1,827.50 in passive income.

Low crude and natural gas liquid prices and 9% decline in physical volumes caused the 61.9% decrease in net earnings for Q2 2020 versus Q2 2019.  Management believes the quarter reflects the worst impact of COVID-19. The outlook in the coming quarters is positive as global energy prices rebound.  Pembina expects to exit 2020 with a strong financial position.

Fantastic growth potentials

WELL Health Technologies (TSX:WELL) is among this year’s top-performers that you can purchase at a bargain. As of August 7, 2020, the price is $4.49 or 187.8% higher than $1.54 at the start of 2020. Had you invested $5,000 that time, your money would be worth $14,391.03 in the present.

This $584.32 million company owns that operates a portfolio of healthcare facilities has fantastic growth potentials. Its digital health applications will be the key growth drivers. WELL is Canada’s third-largest electronic medical records (EMR) service provider, with over 1,900 clinics and 10,000 doctors in the loop.

A new dawn is for this healthcare stock is at hand with the creation of “WELL Digital Health Apps” (WDHA). The subsidiary will focus solely on developing, investing in and unlocking opportunities associated with digital health applications. WHDA’s primary goal is to establish investments and commercial agreements with best-in-class digital health companies.

WELL is on track to achieve organic revenue growth after seeing a 918% increase in digital services revenue in Q1 2020. The company is about to consolidate and modernize clinical and digital assets within the primary healthcare sector. Investors should ride on the building momentum before the price soars through the roof.

Cheap but sound investments

Some businesses might never return to pre-corona levels or recover from the economic turbulence in 2020. But as in previous financial meltdowns, savvy investors will keep looking for profitable opportunities. Resilient companies will survive the short-term pressure, while new ones will emerge as appealing options.

Pembina Pipeline and WELL Health Technologies are not distressed companies because the stocks are trading at ridiculous bargain prices. The turnaround of the prominent pipeline operator is imminent, while the EMR service provider will thrive as digital health apps take root.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.

More on Dividend Stocks

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Utility Stocks That Are Smart Buys for Canadians in November

These utility stocks benefit from regulated businesses and generate predictable cash flows that support higher dividend payouts.

Read more »

Start line on the highway
Dividend Stocks

Invest $10,000 in This Dividend Stock for $600 in Passive Income

Do you want to generate passive income? Forget the rental unit! This option will save you the mortgage yet still…

Read more »

Senior uses a laptop computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

TD Bank (TSX:TD) shares are way too cheap with way too swollen a yield for retirees to pass up right…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

Is Brookfield Infrastructure Partners a Buy for its 4.75% Yield?

Brookfield Infrastructure Partners (BIP) has a 4.75% dividend yield. Is it worth it?

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »