BB:CC - 3 Under-$10 TSX Stocks to Buy for Superior Returns
2023-12-18 16:00:00 ET
It does not require huge capital to start your investment journey. One can create substantial wealth by making smaller but regular investments. So, here are three TSX stocks that you can buy with as little as $10 that have the potential to deliver superior returns in the long run.
WELL Health Technologies
WELL Health Technologies ( TSX:WELL ) focuses on developing technologies and services that could aid healthcare providers in delivering positive patient outcomes. With the increased adoption of telehealthcare services and digitization of clinical procedures, the demand for the company’s services is rising. Meanwhile, the company is growing its geographical presence through strategic acquisitions and developing innovative products to meet the growing needs of healthcare providers.
The tech-enabled healthcare company is investing aggressively in artificial intelligence to develop compelling products to enhance clinic productivity and improve patient outcomes. It recently introduced WELL AI Decision Support, which would aid healthcare providers in diagnosing complex or rare diseases early. Further, it recently acquired Proack Security, Seekintoo, and HEALWELL’s clinical assets in Ontario.
Amid these growth initiatives, the company’s management is confident of posting $900 million in revenue next year. It represents an 18% increase from the mid-point of its 2023 guidance. Its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and cash flows could continue to improve. Despite its healthy growth prospects, WELL Health trades at a cheaper valuation, with its NTM (next-12-month) price-to-sales and NTM price-to-earnings multiples at 1.1 and 14, respectively.
BlackBerry
BlackBerry ( TSX:BB ), which operates in high-growth sectors like cybersecurity and IoT (Internet of Things), is another top under-$10 stock to have in your portfolio. The company’s QNX platform runs in over 235 million cars. Meanwhile, it is strengthening its platform through its next-generation platform that can embed generative AI (artificial intelligence) applications. The enhancement of safety features in automobiles and the growth in the demand for connected and autonomous vehicles have created a multi-year growth potential for the company.
Meanwhile, the technology company is witnessing weakness in its cybersecurity segment amid a challenging macro environment. However, its long-term growth prospects remain solid, given its blue-chip clients and perpetual government opportunities. The company is also developing AI-driven cybersecurity solutions to shield its clients from growing cyber threats.
BlackBerry has witnessed healthy buying since November, with its stock price rising around 17%. Considering its healthy growth prospects, I expect the upward momentum to continue.
Crescent Point Energy
Crescent Point Energy ( TSX:CPG ) is an oil and natural gas company focusing on light oil production. The announcement by OPEC (Organization of Petroleum Exporting Countries) and its allies of voluntary production cuts could lower overall oil production by around 2.2 million barrels per day in the first quarter of 2024. These production cuts could support oil prices. The improvement in the macro environment, with inflation showing signs of easing, could boost economic activities, thus driving oil prices.
Meanwhile, Crescent Point has planned to invest around $1 billion annually for the next five years, strengthening its asset base to increase production. With these investments, the company expects its production to grow at a 5% compound annual growth rate through 2028. The company trades at a cheaper NTM price-to-earnings multiple of 8.2 and offers a healthy dividend yield of 4.4, making it an attractive buy.
The post 3 Under-$10 TSX Stocks to Buy for Superior Returns appeared first on The Motley Fool Canada .
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