Owning one of the pharmaceutical companies could offer some potential for investors. However, I believe there may be several stocks right here on the TSX that offer investors much more benefit.
Why you should forget about Pfizer
By now, most vaccine makers have already seen a massive increase in their stock price since the start of the pandemic. Additionally, by the time the news broke on Monday and the market opened, news of the vaccine was already embedded in Pfizer’s share price.
Also, investing in a pharmaceutical company would still be seen as a speculative buy because it can make the best vaccine.
We still don’t know if the vaccine will be approved; there has been no news on the safety of the vaccine. It may not even be the best choice either, given that it is a two-dose vaccine and must be stored at extremely cold temperatures. It’s also still so early that we don’t know if this will be an annual vaccine.
There is also uncertainty about the cost of the vaccine and how much the company will gain from it, especially in third world countries.
With all of these unknowns and many investors already rushing to pharmaceutical companies, there are much better choices for investors. Here are two TSX stocks that you can buy today instead.
Stock de restaurant
Rather than Pfizer, investors should consider struggling companies. One of the main companies trading at a large discount is A&W Revenue Royalties Income Fund (TSX: AW.UN).
Restaurant stocks were among the stocks hit hardest by the pandemic. Fortunately for A&W, quick service restaurants like him have seen much less of an impact.
The biggest impact on the restaurant industry has been restaurants where capacity was limited during the pandemic. Therefore, after the initial sale of A&W, the stock saw a strong rally.
It continues to post impressive numbers as its business resumes. The stock even paid a special dividend to shareholders last month. This happened just a few months after its dividend was reinstated following a temporary suspension at the start of the pandemic.
Currently, the stock is trading at a discount of around 25% from its 52-week high, and its dividend is earning around 4%. It’s an extremely attractive entry point, especially considering the strong growth A&W was achieving before the pandemic and the potential for its dividend to grow as A&W business picks up.
TSX Energy Stock
Another stock that you might want to consider in place of Pfizer is Enbridge (TSX: ENB) (NYSE: ENB). Enbridge is not an extremely cheap stock like other very troubled companies. However, given the quality and size of the business, Enbridge’s current discount makes inventory a hassle-free purchase.
The energy giant is a massive company with significant competitive advantages. The company transports about a quarter of all oil and natural gas in North America, making it a key part of the continent’s economy.
Its main volumes have been declining since the start of the pandemic. However, Enbridge’s impressive business can easily absorb the revenue impact.
In fact, its operations are so robust that since the start of the pandemic, management has not shied away from believing that distributable cash flow per share for 2020 would be between $ 4.50 and $ 4.80.
In its third quarter earnings report, Enbridge once again showed investors why this is such a high quality company that investors can buy and own forever.
At Thursday’s close, Enbridge was once again trading below $ 38 a share. It’s extremely cheap for such a large and dominant company.
Also, earlier this year, the stock hasn’t been this cheap since 2011. Plus, with its very stable dividend at over 8.5%, it’s easily one of the best investments you can make. can do today.
Fool contributor Daniel Da Costa owns shares of ENBRIDGE INC. The Motley Fool owns stocks and recommends Enbridge.