Finding Hidden Gems: Investing Wisely in a Bearish Climate

For investors seeking hidden gems to buy in this very uncertain environment, here are two of the best options to consider on the TSX.

| More on:

Markets rise and fall all the time. But only when the stocks fall by 20% or more is the market considered bearish. Bear markets typically occur due to a significant change in market conditions. This can happen due to inflation, rapid increases in interest rates, etc. 

Conditions such as a bear market offer excellent opportunities to invest in high-quality stocks. This article will focus on two such hidden gems to invest in a bearish climate for a quality return on your investment. 

Newmont Gold 

Newmont Gold (TSX:NGT) has successfully completed the acquisition of Newcrest Mining through its subsidiary Newmont Overseas Holdings Pty Ltd. The acquisition announced its eligible shareholders to receive 0.400 units of Newmont Securities and was completed under a scheme approved by the Newcrest Board. 

With this acquisition, Newmont shares joined the ASX 200. However, being a U.S.-listed company, the merger has posed quite a challenge. For instance, Newcrest investors on the ASX have received CDIs that allow foreign-listed shares to trade on ASX. 

According to Palmer, Newmont’s chief executive officer (CEO), this merger is expected to strengthen the company’s portfolio and build the best collection of copper and tier-one gold assets. 

This acquisition resulted in a 1.18% gain in shares. Adding to the positive note, Newmont has ended the strike at its Peñasquito mine with an 8% increase in pay for each shift. 

Restaurant Brands 

When it comes to dividend payments, Restaurant Brands (TSX:QSR) is one of the top choices for investors. However, the blue-chip stock’s recent earnings have shown a drop in its revenue owing to Burger King’s slowed-down growth. Although, the company is spending $400 million to renew its Burger King business.

The report has both ups and downs. For instance, the company’s revenue grew 6.4% from its revenue of $1.84 billion in the past year. Additionally, the profit of $0.90 per share also topped analysts’ estimates. 

Restaurant Brands has recently announced that it plans to amend its Revolving Credit and Term Loan Facilities. This should provide ample liquidity for the company to continue to grow and improve financial flexibility. This move, in combination with what appears to be a rock-solid balance sheet, makes this a stock I think is worth owning for the long term at these levels. This says nothing of the company’s strong dividend yield and impressive growth outlook over the long term.

Bottom line

Both of these companies have delivered great returns in the past and have been favourites among investors. In this bearish market, add these two blue-chip stocks to your portfolio to have great returns on your investment when the prices are sky high. 

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 Chris MacDonald has positions in Restaurant Brands International. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

More on Investing

Canadian dollars are printed
Dividend Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Toronto-Dominion Bank (TSX:TD) stock could do well in the year ahead.

Read more »

monthly desk calendar
Dividend Stocks

Monthly Income: Top Dividend Stocks to Buy in November

Here are two of the best monthly dividend stocks in Canada you can buy in November 2024 and hold for…

Read more »

hand stacks coins
Investing

A Top TSX Stock to Buy Now for Real Wealth Later

Intact Financial (TSX:IFC) stock is a fantastic dividend-growth play for the next 15 years and beyond.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Thursday, November 14

The U.S. wholesale inflation data and Fed chair Jerome Powell’s remarks about the economy will remain on TSX investors’ radar…

Read more »

Man data analyze
Tech Stocks

3 Reasons Celestica Stock Is a Screaming Buy Now

These three reasons make Celestica stock a screaming buy for long-term investors.

Read more »

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Confused person shrugging
Dividend Stocks

Better Buy: Fortis Stock or Hydro One Stock?

Let's do a compare and contrast of these two top utilities stocks right now, shall we?

Read more »