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Beginning Investors: Canadian Stocks That Cost Less Than $20 Right Now

Rajiv Nanjapla
·4 min read
A close up image of Canadian $20 Dollar bills
Image source: Getty Images

Written by Rajiv Nanjapla at The Motley Fool Canada

You don’t require huge capital to start investing in equity markets. A small but regular investment can create substantial wealth in the long run. So, if you are starting your investment journey, here are three high-growth stocks you can buy for under $20.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) is one of the top growth stocks to have in your portfolio, given its solid financials, strategic acquisitions, and high-growth prospects. Last month, it provided preliminary metrics about patient visits and interactions for the fourth quarter. It had 991,268 omnichannel patient visits during the quarter, representing a 42% year-over-year growth and a sequential growth of 11%. The company’s omnichannel patient visits increased by 50% for the entire year to 3.5 million.

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Meanwhile, the telehealthcare market is expanding at a healthier and could grow at an annualized rate of 19.5% through 2030. Its recent acquisitions in Canada and the United States would allow the company to benefit from the market expansion. The company has also made a strategic investment in doctorly GmbH, which offers medical practice management software in Germany.

So, the company’s growth prospects look healthy. However, despite its impressive growth prospects, the company trades at an attractive NTM (next 12-month) price-to-sales multiple of 1.7, making it an excellent buy for investors.

Savaria

Second on my list is Savaria (TSX:SIS), which provides accessibility solutions to disabled persons. Last month, it posted promising preliminary results for 2022. The company expects to post revenue of approximately $789 million in 2022, representing a 19% growth from its previous year. Along with its top-line growth, the company’s management is projecting its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income to grow by 20% and 78%, respectively.

Amid the aging population, a rise in non-communicable diseases, and the development of innovative products, the assistance devices market could continue to grow in the coming years. Meanwhile, Acumen Research and Consulting projects the market to grow at 5.9% for the rest of this decade. Given its expanded product offerings, solid sales network, and manufacturing facilities spread across Canada, the United States, Europe, and China, the company is well equipped to drive its growth.

Savaria pays a monthly dividend with its yield currently at 2.9% and trades at an attractive price-to-sales multiple of 1.3, making it an attractive buy.

BlackBerry

My final pick is BlackBerry (TSX:BB), which offers a wide range of cybersecurity and IoT (Internet of Things) solutions. Yesterday, the company reported its preliminary results for fiscal 2023, which ended on February 28. Amid weak performance from its cybersecurity and licensing segments, the company’s management expects fiscal 2023 revenue to decline by 8.6% to US$656 million. The management has blamed the slipping of specific large government contracts to the next fiscal year for its cybersecurity revenue decline.

Meanwhile, the IoT segment posted a solid 16% year-over-year growth and was in line with the company’s guidance. Amid the weak preliminary numbers, BlackBerry lost around 11.7% of its stock value yesterday and traded at a 51.7% discount from its 52-week high as of March 7th closing price.

Despite the near-term volatility, I am bullish on BlackBerry due to its multiple growth drivers. The IoT market is expanding amid growing demand for autonomous and connected vehicles. With its design wins in safety-critical automotive solutions and the IVY platform, the company is well equipped to benefit from market expansion. So, given its discounted stock price and multiple growth drivers, BlackBerry could be an excellent long-term buy.

The post Beginning Investors: Canadian Stocks That Cost Less Than $20 Right Now appeared first on The Motley Fool Canada.

Should You Invest $1,000 In BlackBerry?

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Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in March 2023... and BlackBerry wasn't on the list.

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See the 5 Stocks * Returns as of 3/7/23

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Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2023