Yahoo Finance 2 Underrated Stocks That Have Soared in the Past Month
The markets have been downright brutal lately and many stocks have been hit hard. Canopy Growth Corp (TSX:WEED)(NYSE:CGC) is a good example, as the once high-flying cannabis stocks that reached highs of over $76 earlier this year barely closed above $43 on Monday.
We’ve been seeing a bit of a trend lately as investors have been selling off risky or otherwise speculative stocks and putting their money into safer investments. While you might still earn a decent return from Canopy Growth, there are a couple of better, safer options out there for investors that have actually done well recently.
Below are two stocks that have risen by more than 10% in just the past month with the potential to climb even higher.
Great Canadian Gaming Corp (TSX:GC) came out with a solid earnings performance earlier this month that saw incredible year-over-year growth.
The company has seen a lot more properties come under its management since last year, and the results have begun to pay off as the stock is up more than 14% in the past month.
However, as well as Great Canadian has done, it still has a lot more room to grow, as last year it won a big bid to operate some key locations in Ontario for decades. The company has many properties under its belt, with the River Rock being its flagship location.
Great Canadian’s ability to effectively manage some top casinos in the country and create a great experience for customers should have investors optimistic for what the future holds, especially as it adds more properties to its portfolio.
Gambling is one industry that has the ability to do well in both good times and in bad, as many people see it as a form of entertainment. It’s not nearly as risky as some other options out there and at the same time, it continues to evolve and bring in new customers.
With the stock trading at a modest 23 times its earnings, Great Canadian offers good value for the amount of growth the stock has achieved and it could have a lot of upside in the quarters and years ahead.
Home Capital Group Inc (TSX:HCG) has had a long road to recovery after a catastrophic 2017 sent the stock into the abyss. However, time can heal a lot of things and Home Capital is a good example of just that.
While the stock is still nowhere near the levels it was at before it crashed last year, it has still come a long way since then. The company has been producing good, strong quarters and has distanced itself from the scandal that rocked the share price.
As a result, investors have become more bullish on Home Capital, as in the past year the stock has risen by 12% and in three months it has popped by more than 20%.
Home Capital is still a good deal today, trading at below book value and a low price-to-earnings multiple of just 11. It’s a great option for investors who are willing to take a chance on a stock that has started to turn things around.
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Fool contributor David Jagielski has no position in any of the stocks mentioned.
