St. Patrick's Day Sale
If you don’t have much cash on hand, it can certainly be hard to be convinced to invest it. And honestly, if this is perhaps your emergency funds, then you likely do not want to invest it but keep it available in case it’s needed.
That being said, you may have $1,000 sitting in a Tax-Free Savings Account (TFSA) that’s doing absolutely nothing. If that’s the case, there are oversold stocks that offer little downside and a whole lot of upside.
These are the three I would consider first on the TSX today.
TELUS
While there is a lot going on in the telecommunications sector right now, TELUS (TSX:T) certainly doesn’t belong in oversold territory right now. It’s still one of the largest wireless companies in the country, with plenty of customers on hand to see growth continue for years.
And yet with negative performance and a merge happening in the industry, shares of TELUS stock have dropped about 11% in the last year. It now trades in oversold territory at a Relative Strength Index (RSI) of 27.73 as of writing, which is far below the 35 needed to be marked as oversold.
Right now, I would certainly consider TELUS stock a buy, especially if you only have a little to invest. The company will certainly recover in the near future. So, you can therefore bring in substantial long-term growth as well as a current 5.66% dividend yield.
Northland Power
Then there’s Northland Power (TSX:NPI), where short-term issues continue to plague the company’s financials. There have been issues at some of its renewable energy sites that have led to lower production. Yet this will eventually change, making it a strong choice if you’re looking for value as it trades at a RSI of 27.97.
Northland stock is also a great choice for those seeking passive income on a regular basis. It currently holds a dividend yield at 4.34%, handing out dividends on a monthly basis. It’s also now in value territory, trading at 10.08 times earnings at the time of writing.
With shares down 25% in the last year, Northland stock is a great option if you want to invest a small stake and wait for a recovery.
Wheaton Precious Metals
Finally, we have Wheaton Precious Metals (TSX:WPM), which is an excellent choice given that you get access to minerals, with far less risk. The stock is a metal streaming company, providing startup costs and receiving products from these companies at cheap prices.
It seems the catalyst perhaps has to do with the acquisition of a gold company, with investors hoping to hoard cash instead of spending it. Even still, while shares are down 5% in the last month trading at an RSI of 28.21, it’s still up 17% in the last year.
So, even though the company has been missing earnings estimates, this could be a good time to consider Wheaton stock while it’s down. Because it looks like another rebound could be very near in the company’s future, as gold prices remain strong.
