Got $1,000? These 2 Canadian Stocks Are Near 52-Week Lows

Badger Infrastructure Solutions (TSX:BDGI) and Barrick Gold (TSX:ABX)(NYSE:GOLD) are great Canadian stocks to buy near 52-week lows.

| More on:
calculate and analyze stock

Image source: Getty Images

If you’ve got an extra $1,000 to invest, now is as good a time as any to put it to work, with a potential period of seasonal strength in the Santa Claus rally just up ahead. Undoubtedly, valuations are still hot on a wide range of high-flying Canadian stocks. But there are bargains buried beneath the big 2021 winners on the 52-week low list. Still, just because a stock is oversold doesn’t mean it’s undervalued. That said, certain firms tend to be oversold on news that may not be nearly as material to the long-term fundamentals. And if you spot a stock lurking at or around those 52-week lows, feel free to pick up some shares if it’s mostly noise behind a name’s decline.

In this piece, we’ll look at two compelling 52-week low stocks that could reverse abruptly and perhaps even outpace the broader TSX Index in the new year. Consider Badger Infrastructure Solutions (TSX:BDGI) and Barrick Gold (TSX:ABX)(NYSE:GOLD). The two TSX dogs of 2021 currently find themselves down 20% and 25%, respectively, year to date.

Badger Infrastructure Solutions

Badger Infrastructure Solutions, previously known as Badger Daylighting, has been under considerable pressure for most of the year, tumbling on the back of meagre earnings reports. Indeed, it’s been a slog for the hydrovac excavation play. Looking into the new year, however, there are some things that could improve. Badger’s margins haven’t lived up to expectations, but that could change, as the firm takes a step back to iron out the wrinkles at the idiosyncratic level. Further, many oil and gas players are likely going to ramp up their businesses, especially if oil makes a run for the US$100 mark, as some pundits expect.

The environment looks good, and if Badger can relieve some of its margin pressures, the upside in the stock could be huge. Simply put, Badger has been beaten down so badly that it won’t take much to move the needle much higher. With shares fresh off a 33% decline off 52-week highs, the risk/reward looks good for the Calgary-based firm. In due time, the stock will see the light of day again once it’s dug itself out of the hole it dug itself in this past year.

Barrick Gold

Barrick Gold cannot catch a break these days. As a levered way to play the price of gold, Barrick has been dealt a huge punch to the gut this year. For gold investors, it’s aggravating, given many likely wanted a safe place to perform well amid higher levels of inflation. In the era of crypto, however, gold has lost its shine. For how long? It’s hard to tell. Probably after the next cyclical downturn in the crypto markets. Indeed, Bitcoin is wildly volatile and is not a great store of value when times get really tough, given the positive correlation to stock markets during crash conditions.

Personally, I favour gold over millennial gold and would be a buyer of Barrick here, as the nearly 2% dividend yield is more than enough incentive to wait for precious metal prices to pick up traction once again. Barrick is well managed with some of the better fundamentals in the industry. Although I’m not against buying cryptocurrencies in addition to the gold miners, I think the wisest long-term bet would be to bet more heavily on top-tier gold miners like Barrick while they’re down and out.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin.

More on Investing

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

ways to boost income
Investing

Are Telus and BCE Stocks a Smart Buy for Canadian Investors?

Telus (TSX:T) and BCE (TSX:BCE) have massive dividend yields, but their shares have been quite sluggish!

Read more »

investment research
Tech Stocks

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

Is OpenText stock poised for a 2025 comeback? AI ambitions, a 3.8% yield, and cash flow power make it a…

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

rising arrow with flames
Investing

2 Riskier Stocks With High Potential for Canadian Investors in November

Risky stocks such as Well Health Technologies have the potential to provide life-changing long-term returns.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »