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With markets at record highs, it might seem that there are no cheap stocks left to buy. A lot of stocks under $10 might not be the best ones around, and investors would do well to avoid them. However, for those willing to put in hard hours, there are several stocks under $10 with significant upside. Here are 20 of the best TSX stocks under $10 to invest in now.
Best Canadian Stocks Under $10 to Invest In
20 Best Canadian Stocks Under $10 To Invest In Now
- Best Canadian Stocks Under $10 to Invest In
StorageVault Canada manages, stores and rents portable storage and self-storage spaces to commercial and individual clients.
The company has managed to consistently deliver excellent returns to its investors, thanks to its rapidly growing storage business. Its stock has gone up by 408% in the last five years and its growth can be attributed to both its strategic acquisitions and revenue growth.
Revenue for the first quarter of 2021 increased to $43.3 million compared to $35.8 million in Q1 2020 and net operating income grew to $27.4 million from $23.1 million in the same period in 2020.
StorageVault Canada owns and operates in over 200 storage locations at present, situated throughout the country and these require minimal capital expenditure but offer robust funds from its operations. The fact that the company has managed to create a dominant stance in the local market also seems to be good news for it, thus presenting a potential upside that can be quite substantial. Analysts have given it a target of $5.21 which is an upside of over 11% from current levels.
GoodFood Market is an online grocer in Canada that delivers meal kits and home meals too. On June 4 it announced that “it had 317,000 active subscribers at the end of the third quarter of Fiscal 2021. This represents an increase of 17% compared to the same period last year.”
This is one stock that has continued to impress investors with its brilliant performance during the pandemic, managing to drive its valuation higher. The stocks are up by 131% since January 1, 2020, and closed June 18 at $7.34.
The pandemic resulted in a solid increase in its customer base and along with well-targeted marketing strategies cash flow should improve. Analysts have given the stock a target of $12.44 which is an upside of almost 70% from current levels. The company surpassed $100 million in quarterly revenues for the first time in the second quarter of fiscal 2021. It’s a good stock to have as online ordering is one pandemic habit that won’t go away easily.
Fire & Flower
Fire & Flower is a cannabis retailer dispensary where you can order oil, vapes, flower, concentrates, and other edibles online and opt for home delivery or pickup in-store.
It has missed its estimates for the last four consecutive quarters but it still finds a place on this list. The company recently reported its Q1 readings of 2021 and saw a wider loss than from a year earlier despite seeing an increase in its revenues. The retail business saw strong sales growth, despite seeing challenges from the COVID-19 pandemic and the retail footprint also saw growth through the opening of two new stores in Vancouver, bringing up the total licensed stores count to 83.
It has also recently entered the US market via a strategic licensing agreement along with an acquisition option with American Acres Managers, accessing licensing opportunities in Nevada, Arizona and California. The company is currently positioned well to continue expanding in the Canadian cannabis market while looking at international expansion opportunities and with its stock currently at CA$1.08, it can definitely make a good addition to your cannabis portfolio. Analysts have given it a target of $1.92 which is an upside of 78% from current levels.
Kinross Gold Corporation is a Canada-based gold and silver mining company, operating in eight active gold mines and ranking 5th of the ‘Top 10 Gold Mining Companies’ in 2019.
Kinross Gold’s shares have managed to add about 6.2% within a month since its last earnings report in May. The company reported profits of $149.5 million in the first quarter of 2021. Its revenue rose 12% year-over-year to $986.5 million. 2022 and 2023 should see the company increase its annual production to 2.7 million gold ounces and 2.9 million gold ounces, respectively.
The shares for the company are currently going at $78 and can be considered a good buy for investors who are looking for a hedge against other volatile sectors.
H2O Innovation is a leading wastewater, water, and water reuse treatment company. It’s a good pick for your ESG portfolio.
The stocks are currently trading at $2.21 per share and while that’s a decline from its January high, the business has continued to get better. The company has been a beneficiary in the trend of delivering freshwater, providing better preservation and water management to corporations, municipalities and utilities. On June 1, the company announced that it was awarded 10 new projects over the last months, including six industrial ones. These new contracts, totaling $4.5 million, will bring the company’s sales backlog to $35 million.
Consolidated revenues for the three-month period ended on March 31, 2021, increased by $3.1 million, or 8.6 %, to reach $39.2 million compared to $36.1 million for the comparable quarter of the previous fiscal year.
Since the company’s inception, it has managed to grow by almost 30% in a year. 87% of its revenues are recurring.
Sangoma Tech is a provider of software and hardware for voice-over IP. Its data, voice and video products are used in IVR, unified communications, PBX, contact center and data-communication applications worldwide.
The stock is currently trading at $3.39 per share and is currently down by around 32% from its highs set in February. Despite seeing a decline, the fundamentals for the business continue to remain strong.
The company reported numbers for the quarter ended March 31, 2021, and it said, “Sales for the quarter were $35.44 million. For this period though, the comparison to the prior year was materially affected by the significant and rapid swing in exchange rates between quarters.”
It recently acquired Star2Star which gave it a significant boost in its recurring revenue stream. Analysts have given it a target price of $5.57 which is a potential upside of over 64%.
Well Health Tech
Well Health Technologies capitalized on the pandemic and grew its telehealth and virtual clinic business. The stock has grown over 270% since April 1, 2020, where it closed at $2.1.
Currently, the company is worth $1.5 billion. The team is making tangible progress and has managed to capture the U.S, market. It recently completed its majority stake acquisition of Doctor Services Group which is expected to be an immediately accretive acquisition, generating over $450K of normalized EBITDA per year.
It has also acquired CRH medical (an American health tech start-up) last year thus giving the company an opportunity to expand across the US in 2021 and beyond. The stocks are currently going at $7.8 and analysts have given it a target of $11.96, which is an upside of over 53%.
CloudMD Software & Services is a rapidly growing growth technology company in the healthcare space.
The company is on a ‘growth-through-acquisition’ strategy. It reported a revenue of $8.8 million for Q1 2021, an increase of 187% compared to Q1 2020 and 51% compared to Q4 2020. It closed 5 acquisitions in Q1 2021, providing the foundation for scale and growth across North America and Europe. These acquisitions are expected to add an additional $13 million in annual run-rate revenue. Four more acquisitions in 2021 will add $79 million to the run rate.
The stock is currently at $1.79 and analysts have given it a target of $3.96, an upside of 121% from current levels.
Corus Entertainment is a Canadian multinational mass media and entertainment conglomerate company that has prominent holdings in publishing, the radio and television industries.
It is primed to zoom as the economy recovers and industries open up. It reported numbers for the quarter ended March 31, 2021, and consolidated revenues declined 5% for the quarter and 8% year-to-date. Net income attributable to shareholders of $35.3 million. Free cash flow came in at $89.7 million for the quarter and $152.1 million year-to-date. Achieved a recent milestone of over 500,000 paying subscribers on streaming platforms, doubled from the prior year.
The stock is currently at $5.7 and analysts have given it a target of $7.83, an upside of over 37% from current levels.
OrganiGram Holdings is a Canadian licensed producer of high-quality medical and recreational cannabis. It is a contrarian stock on this list.
The stock has fallen almost 35% since March and its latest earnings report for the second quarter in fiscal 2021 saw net revenue at $14.64 million declined by 37% year-over-year. It has produced 62 new SKUs since July 2020, bringing in a constant stream of new products.
The stock is at $2.91 and can double from here onwards.
BTB REIT is a comparatively small REIT in Canada with a market cap of 233.248 million. This REIT has access to a total leasable area of approximately 5.7 million square feet. Its portfolio consists of 71 retail, office, and industrial properties which are located in the eastern region of Canada with a high committed occupancy of 92%.
The best part about the BTB stock is its passive income generating capability. It has a massive dividend yield of 7.46% and has consistently paid monthly dividends to its investors over the years. Moreover, even during the pandemic, its dividend payouts were much better than most other stocks.
Extendicare is the stock one should opt for if they need higher payouts but have a low-risk appetite. This Markham-based company provides care facilities to around 83,500 senior citizens in Canada and operates 120 senior living and healthcare assistance facilities in Canada.
For the quarter ending September 2021, the company had increased its top line by 4.5% and as the country’s population is greying, the demand for such senior care is only going to increase in the coming days. Besides, for catering to the increased demand the company is constructing a new long-term-care home in Kingston, Ontario, with 192-beds and another new facility in Sudbury, Ontario.
Hexo is an Ottawa-based marijuana producer. It has been one of the worst-performing TSX stocks in the past few months and has lost the majority of its value in a short span. Moreover, despite making three major acquisitions in the past year the company’s revenue didn’t show much of an improvement and the losses still widened instead.
But now its management has announced a new strategic plan to improve its growth. Also, the Canadian cannabis space is starting to undergo widespread consolidation and since Hexo is a top-tier revenue generator in the Canadian cannabis market, its fortunes are ripe for a change..
Aeterna Zentaris (AEZS) is a biopharmaceutical company that specializes in oncology and endocrine and has made significant advancements in medical fields which are usually unmet. The stock has plunged more than 45% year-over-year and 8.92% year-to-date. The stock faces potential delisting due to non-compliance with Nasdaq listing rules.
But factors like the initiation of pivotal Phase 3 safety and efficacy study of AEZS-130-P02 in partnership with Novo Nordisk for diagnosing childhood-onset growth hormone deficiency or entering into a license agreement with Julius-Maximilians-University for developing a potential oral COVID-19 vaccine might bode well for the company in the long run.
Baytex Energy is an Alberta-based oil and gas company that acquires, develops, and produces crude oil and natural gas in the Western Canadian Sedimentary Basin region and in the Eagle Ford region in the United States. The company has got over the 2020 blues and has gained around 400% over the past year.
Baytex Energy is now also generating significant cash flows. For the quarter ended 30th September 2021, it increased its sales 77.37% year-over-year and generated a net income of $1.05 billion against the loss of $2.66 billion generated a year ago. Its CEO Ed LaFehr feels at the current commodity prices Baytex might generate more than $400 million in free cash flow by the end of 2021.
B2Gold Corp is a Vancouver-based mining company owning and operating several gold mines across the regions of Mali, Namibia, the Philippines, Colombia, Finland and Uzbekistan. After rallying for five consecutive years the stock has lost more than 30% of its value in the past year.
Despite achieving record quarterly gold production in the third quarter at the Fekola and Otjikoto Mines, the company’s bottom line got affected because of weaker gold prices. So, it is expected as the gold prices rise in the near term the company will be able to post much stronger financial growth and profitability.
Western Forest Products
Western Forest Products is a British Columbia based lumber company involved in activities such as timber harvesting, sawmilling logs into specialty lumber, value-added lumber remanufacturing, or lumber purchasing and wholesaling. After the 2020 dip, the stock has recovered to a great extent and has gained near about 65% over the past year. It has also reported an EPS of C$0.12 in its latest quarter report beating the expectations of many analysts. The market is still bullish on this stock and expects it to perform in a similar fashion in 2022 as well.
Crew Energy is a light oil and natural gas producer from Western Canada that holds a massive earning potential. This stock has outperformed both the energy sector as well as the TSX in the past year and has generated near about 400% value for the investors.
Benefitting from the positive market developments and higher crude prices in the third quarter of 2021 this company has turned quite cash rich. Moreover, the two-year plan shared by its management shows the company intends to increase its production levels and reduce its costs further to reap greater benefits from the increased commodity price levels.
Yamana Gold is a Canadian company operating gold, silver, and copper mines across Canada, Chile, Brazil and Argentina. The company has a strong balance sheet and its dividend yield of 3.1% provides sufficient incentives to the dividend hungry investors interested in increasing their passive income sources.
Moreover, last month it has received permission to increase its output by 10,000 tonnes per day (TPD) at its Jacobina mine and intends to increase the output to 8,500 TPD by the second quarter of this year. This move might help the company generate more income and thereby provide greater returns to the shareholders
Fission Uranium is a Canada-based mineral exploration company actively engaged in the strategic exploration and development of uranium assets across Canada’s Athabasca Basin District. After experiencing a terrible 2020 the stock has performed brilliantly gaining more than 100% in the past 12 months.
The best part about its asset base is its PLS project involves a Triple R deposit which is the region’s largest high-grade deposit at shallow depth. So, when it actually commences its production over there it is going to make a huge impact.
However, for being a small-cap as well as commodity stock, the Fission Uranium stock is quite prone to volatility and is thus not well suited for low-risk investors
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