VBNK:CC - 3 TSX Stocks Under $20 That Are Screaming Buys
2025-10-29 16:50:00 ET
Even though the TSX Index is up near all-time highs, many stocks are down for the year or down in recent months. The TSX’s performance has largely been driven by mining and banking stocks.
If you don’t mind looking in different segments, you can find some intriguing value right now. Here are three stocks trading for under $20 per share that are attractive buys right now.
VitalHub: A TSX small-cap tech stock
VitalHub ( TSX:VHI ) has been listed in the top TSX 30 for a couple of years due to strong stock performance. However, its stock has underperformed the market in 2025 with an only 6% return. Today, VitalHub trades with a price of $11.56 and a market cap of $726 million.
VitalHub provides specialty software to the public healthcare market. These solutions help improve outcomes, coordinate care, and streamline processes. They save money and improve patient experiences.
The software firm has used acquisitions to propel growth. VitalHub has made 22 acquisitions to date. It has a development platform in Sri Lanka that can cost-effectively improve and integrate new software assets into its broader portfolio. After some recent equity financings, VitalHub has nearly $100 million of cash to opportunistically deploy into more acquisitions.
VitalHub is not a cheap stock. It trades with a forward price-to-earnings ratio of 44. However, the company is growing quickly and starting to generate strong cash flows. The recent share price weakness could be a good opportunity.
Versabank: Canada’s first digital bank
Versabank ( TSX:VBNK ) is another small cap you can nab for under $20. It trades for $16.75 per share and has a market cap of $538 million.
Versabank is Canada’s first digital-only, branchless bank. It uses third-party financial partners (like point-of-sale lenders) to collect deposits. However, the bank rarely interacts with the depositor or borrower directly. The benefit of this is that it has very few loan losses as the partner is largely responsible for managing that.
Versabank just made its first steps into the U.S. That is a market 10 times larger than Canada. It has procured its first partners in the region. However, the Canadian bank still has a large opportunity to expand its services there
It has a substantial (and undervalued) cybersecurity business that it is looking to monetize by year-end. The digital financial services provider also has a unique digital deposit receipt system built to help banks deposit cryptocurrencies and digital assets. Neither of these opportunities is factored into the stock price today.
BSR REIT: A TSX real estate stock for income
If you are looking for more of an income play, BSR REIT ( TSX:HOM.UN ) is an interesting stock. HOM.UN trades for $16.54 and has a market cap of $636 million. The REIT operates 26 multi-family properties in the U.S. sunbelt. Its focus is primarily on Texas.
This is a very strong market for population and economic growth. BSR has been under pressure due to an oversupplied rentals market. However, given the strong growth in the market, it has nearly absorbed all of that new supply. Consequently, BSR could see a strong rental rate growth in the coming few years.
This REIT has been working hard to rotate its asset mix to higher-quality properties and better-located areas. Earlier this year, it sold off a large portion of its portfolio. The transaction demonstrated the market value for its assets. Yet, the stock still trades at a discount to its private market value.
Today, it trades with a 4.8% dividend yield. Collect a nice income stream while you wait for its stock value to unlock.
The post 3 TSX Stocks Under $20 That Are Screaming Buys appeared first on The Motley Fool Canada .
Fool contributor Robin Brown has positions in BSR Real Estate Investment Trust, VersaBank, and Vitalhub. The Motley Fool has positions in and recommends Vitalhub. The Motley Fool recommends BSR Real Estate Investment Trust. The Motley Fool has a disclosure policy .
2025