We’re halfway through 2021, and finding stocks to buy has never been so difficult right now. Most actions appear to be either overvalued or as value traps. For long-term investors, this is a precarious situation.
Nonetheless, there are always opportunities in every market cycle. Here are the three most underrated stocks to buy right now.
Lightspeed POS (TSX: LSPD) (NYSE: LSPD) was one of the top performing tech stocks from the previous year. During the year 2020, the title jumped 140%. This year, it is up 17.7% despite the correction of other technology stocks.
The payment platform occupies a unique position. On the one hand, it benefits from the economic reopening. As consumers return to spending in stores and restaurants, Lightspeed could see an increase in transaction volumes.
Another reason why this is an attractive stock to buy right now is the threat of inflation. Investors are worried about soaring prices and relentless inflation over the coming year. The speed of light, however, conveys inflation. Lightspeed’s revenue increases when its merchants increase prices. This makes it a safer stock to buy during inflationary cycles.
Keep this on your radar.
Another inflation game is Suncor Energy (TSX: SU) (NYSE: SU), Canada’s leading oil and gas stock. Oil prices have continued to rise throughout the year. A barrel of West Texas Intermediate crude costs $ 73.3, more than double its price last year. Some experts believe the price may continue to rise as people start to travel again.
Suncor benefits directly from rising oil prices. In its most recent quarter, Suncor generated $ 2.1 billion in funds from operations, $ 746 million in operating profits and $ 821 million in net income.
Unsurprisingly, the title is up 41.7% since the start of the year. It is still reasonably priced, trading at a forward price / earnings ratio of 11.3 and offering a dividend yield of 2.77%. Suncor is essentially an undervalued bet on the world’s largest commodity amid a historic wave of inflation. If you are looking for a solid stock to buy right now, this is one of the best options.
My Deceive her colleague Kay Ng thinks AcuityAds Holdings (TSX: AT) (NASDAQ: ATY) is currently one of the most undervalued tech stocks on the market. His calculation suggests that the stock could have as much as 74% increase from current levels. The stock is up 6% since writing this article, so time may be running out.
Acuity offers a consolidated platform to help marketers plan and buy digital ads. The platform’s key differentiator is its artificial intelligence model which facilitates analysis. Essentially, it helps people sell things online more accurately. It is a timeless business.
It is also quite lucrative. Acuity generated $ 54 million in gross margin on $ 108 million in revenue in the past 12 months. Acuity’s recent listing on the NASDAQ helped it raise US $ 57.5 million, which could fuel future mergers and acquisitions.
This reasonably priced growth opportunity is probably one of the best stocks to buy right now.
Are you looking for more quality stocks? Here is a list.
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This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content.
The Motley Fool owns shares and recommends AcuityAds Holdings Inc. and Lightspeed POS Inc. Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned.