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 BCE right now?

Before you buy stock in BCE, 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 BCE 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

Hourglass and stock price chart
Dividend Stocks

Stock Market Correction? These 2 Canadian Dividend Stocks Are a Steal

Dividend stocks can be a saviour, but can also lead to large portfolio gains when bought during stock market corrections.

Read more »

A bull and bear face off.
Dividend Stocks

U.S. Tech Stocks Are in Correction Territory… History Says This Happens Next

Canadian stocks like Alimentation Couche-Tard Inc (TSX:ATD) are currently better positioned than U.S. tech.

Read more »

Man in fedora smiles into camera
Dividend Stocks

Retirees: Is Fortis Stock a Risky Buy?

Fortis (TSX:FTS) is often regarded as a great long-term holding for income-seeking investors. But is this stock now a risky…

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Buy the Dip: 3 TSX Stocks Trading at Bargain Prices Today

These three TSX stocks might be near 52-week lows, but don't let that stop you from making a long-term investment.

Read more »

Caution, careful
Dividend Stocks

Sell-Off Alert: Why These TSX Blue-Chip Stocks Look Undervalued Now

These TSX stocks look mighty valuable right now, and come with outlooks that make each prime for the picking.

Read more »

dividends can compound over time
Dividend Stocks

Want a 6% Yield? 3 TSX Stocks to Buy Today

These TSX stocks offer yield of over 6% and are well-positioned to sustain their payouts and maintain consistent dividend payments.

Read more »

clock time
Dividend Stocks

10 Years From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks 

A decade from now, these 2 dividend stocks could give you strong returns through dividends or capital appreciation, or both.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

TFSA: 3 Top-Tier TSX Stocks for That $7,000 Contribution

The market is full of great long-term stock to fuel your TFSA. Here’s a look at three top-tier TSX stocks…

Read more »