3 Oversold Stocks to Invest $1,000 Right Now

It can be scary to invest during a downturn, but a small stake in these three oversold stocks could see quick gains in the future.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Created with Highcharts 11.4.3TELUS + Northland Power + Wheaton Precious Metals PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

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.

Should you invest $1,000 in Northland Power right now?

Before you buy stock in Northland Power, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Northland Power wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

3 colorful arrows racing straight up on a black background.
Dividend Stocks

These Are the Highest-Yielding Stocks on the TSX Right Now 

Let’s look at some of the highest-yielding stocks on the TSX right now and see how you can make the…

Read more »

rail train
Dividend Stocks

Canadian National Railway: Buy, Sell, or Hold in 2025?

CN is down more than 20% in the past year. Is CNR stock now oversold?

Read more »

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

5 Stocks for Canadian Dividend Investors

Given their solid underlying businesses, reliable cash flows, and healthy growth prospects, these five Canadian stocks are excellent buys.

Read more »

Woman in private jet airplane
Dividend Stocks

2 Bargain Stocks to Buy While They’re Still Cheap

Long-term investors looking for bargains should take a closer look at these two solid dividend stocks.

Read more »

analyze data
Dividend Stocks

Take Full Advantage of Your TFSA With These 5 Dividend Stars

These TSX stocks pay good dividends that should continue to grow.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA: Invest $25,000 in This TSX Stock for $1,966 in Annual Passive Income

Whitecap Resources is a TSX dividend stock that offers you a tasty dividend yield in 2025, making it attractive to…

Read more »

investor looks at volatility chart
Dividend Stocks

Sell-Off Survivor: Why This Canadian Stock Is a Must-Own in Volatile Times

There are few sectors that offer the security as well as growth as infrastructure, and this global powerhouse is a…

Read more »

A child pretends to blast off into space.
Dividend Stocks

Trump Tariffs: 1 TSX Stock That Could Take a Huge Hit

Cargoget (TSX:CJT) is vulnerable to Trump tariffs due to extensive involvement in cross-border trade.

Read more »