Written by Karen Thomas, MSc, CFA at The Motley Fool Canada

Investing even $500 in the right stocks can give you access to outsized returns. So, if that’s all you’ve got at the moment, rest assured. I’ve got two Canadian stocks that have the right risk/reward profile to take your investment portfolio to the next level.

Without further ado, let’s take a look at the two stocks to consider investing in right now.

Ballard Power Systems: A Canadian stock with a long history

Well, the tide has really turned for Ballard Power Systems (TSX:BLDP) in the last few years. After hitting highs of more than $50 in early 2021, the environment for Ballard, along with its stock price, has turned decidedly negative.

Changing regulations, delayed adoption, and financial pressures are taking their toll. This has led to fuel cell companies like Ballard turning their focus on manufacturing costs, execution, and a drive to reduce the total cost of ownership for their customers. The goal here is to make fuel cells competitive from a cost perspective and a performance perspective.

Today, Ballard Power is rising to the occasion. The company has no debt, no immediate capital needs, and is aiming to be cash flow positive by the end of 2027. In order to get there, Ballard is evaluating markets that are not performing as well as had been expected, such as the heavy truck market. Investment in this vertical is being adjusted lower. Simply put, a realignment and headcount reduction have freed up cash that will be put to better use in verticals that are growing nicely and performing well.

In Ballard’s latest quarter, revenue increased 11% to $17.8 million, and its gross margin increased 24 basis points to -8%. This was driven by lower manufacturing costs resulting from the restructuring of the business. Recent July restructuring costs will reduce operating costs by another 30%.

Finally, Ballard’s backlog currently stands at $84.3 million. With a focus on the right markets that are working in the near term and an improvement in the company’s cost structure, there seems to be hope. Fuel cells are closer than ever to being a positive value proposition for customers and a money-making business for Ballard.

Well Health Technologies: This stock is rallying on record-breaking results

As a digital healthcare company that’s aiming to digitize and improve healthcare systems through technology, Well Health Technologies Corp. (TSX:WELL) sure has momentum on its side. The healthcare industry is benefitting tremendously from Well Health’s technology, and it shows in Well Health’s results.