The Motley Fool Canada »Dividend Stocks» Where To Invest $ 1,000 Now: Trade 2 Shares For Up To 70% Off
Aditya Ragunath | 9 November 2020 | More on: SU AC SU
In 2020, stock markets made an unprecedented rebound and wiped out most of the losses in the past six months. While the rally was mainly driven by stocks in the tech sector, many others did not participate in the rally and continued to trade at a low valuation.
The second wave of the dreaded Coronavirus, slow economic conditions, and lower consumer spending have resulted in stocks in the energy and aviation sectors trading cheap
However, it might be a good time to dedicate a small portion of your savings into these dilapidated stocks, especially for investors with a high-risk appetite for it. If you have $ 1,000 in a Tax Free Savings Account (TFSA), you can look for Buy these two stocks which are traded at a discount to generate returns that hit the market on a rebound
Passenger airline is one of the industries hardest hit in 2020 This capital intensive sector was soaring high at the end of 2019 as global economies were booming and companies were making record profits
However, when the pandemic struck, borders were closed and global travel halted blatantly meaning that shares of Air Canada (TSX: AC) and its partners saw a massive sell-off in the first half of 2020 In fact, Air Canada’s stock fell from A record high of $ 52 71 at the start of 2020 to a multi-year low of $ 9 26 is now trading at $ 15 82
The company ended the second quarter with $ 9 billion in liquidity, including a cash balance of $ 5 billion, which should help it weather these turbulent times. Air Canada’s upcoming earnings will shed more light on the company’s financial statements as well as the rate of cash burning.
In the second quarter, the airline’s operating expenses were $ 2 billion, compared to sales of only $ 527 million. Air Canada’s focus on cutting costs would enable it to reduce losses in the future. There is a good opportunity for Air Canada to report losses over the next few quarters. At least until a vaccine is developed or the virus is controlled
Air Canada tracking analysts are targeting $ 20 price in 12 months 86, which is 32% higher than its current trading price
Shares in the energy sector have performed below the performance of the wider market by a huge margin. Shares in diversified oil company Suncor Energy (TSX: SU) (NYSE: SU) are trading at $ 15, No. 3, 66% lower than the 52-week high
Investors should note that Warren Buffett increased his stake in Suncor by five million shares in the second quarter of 2020 If Oracle of Omaha is bullish in Suncor, it makes sense to take a closer look at the stock Moreover, the Saudi Wealth Fund has also bought A big stake in this energy heavyweight early 2020
Suncor produces and markets crude oil, which means it has an integrated supply chain. The company also operates four wind farms in Canada and is looking to expand into renewable energy as well.
Suncor shares offer investors a 55% dividend yield despite a 55% dividend yield cut in April among analysts tracking Suncor a 12-month average target price of $ 2628, which is 72% higher than its current trading price After accounting for the dividend yield, the total payout will be closer to 77%
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Stock, TSX, NYSE: SU, Suncor Energy, Investment, Stock market
World News – CA – Where to invest now $ 1,000: Trade 2 stocks at a discount of up to 70%
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– Where to invest $ 1000 Now: Trade 2 stocks at a discount of up to 70%
– Warren Buffett: His stock is down Suncor (TSX: SU) 6,330% in 2020
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