The 5 Best (UNDER-$30) Canadian Stocks to Buy Right Now

Investing regularly, even a small amount, in these five high-growth stocks can generate strong returns over time.

| More on:

Investing in stocks is easy and does not require a large sum of money to buy high-quality companies. Investing regularly, even a small amount, can help generate strong returns over time. I have shortlisted five Canadian stocks that are trading cheap (under $30) and have strong growth potential. 

Air Canada

The resurgent virus, lower advance bookings, and travel restrictions could continue to hurt Air Canada (TSX:AC) stock in the near term. However, Air Canada remains attractive long term and is likely to benefit significantly from the recovery in air travel demand. 

I believe the acceleration in the pace of vaccine distribution and the easing of travel restrictions could significantly boost Air Canada’s financial and operating performance. I expect a sharp improvement in Air Canada’s top line on the back of revival in demand and continued momentum in the air cargo business. Net cash burn and operating losses are also expected to decline and support the uptrend in its stock. 

Suncor Energy

Shares of Suncor Energy (TSX:SU)(NYSE:SU) covered some of its lost ground and appreciated about 51% in the last six months, reflecting a gradual pickup in oil demand. Despite the recent growth, I see further upside in Suncor stock, as increasing economic activities, improving energy outlook, and higher average prices provide a solid base for future growth. 

Furthermore, Suncor’s integrated assets, increased production volumes, and focus on debt reduction position it well to deliver strong financials in the future. Thanks to the improving operating environment, Suncor could continue to bolster shareholders’ returns through regular quarterly dividend payments and share buybacks. 

Cineplex

Like Air Canada, Cineplex (TSX:CGX) continues to take a hit from the resurgence of the virus, while its stock has lost a significant amount of value. Barring near-term challenges, I expect Cineplex to deliver stellar returns in the long run, reflecting a recovery in demand. The ongoing vaccination and reopening of the theatres could give a massive boost to Cineplex’s financial performance. 

I believe Cineplex’s revenues and capacity could improve significantly once the economy returns to normalcy and theatre traffic improves. Currently, the stock is trading cheap and offers excellent value for long-term investors.

AltaGas

AltaGas (TSX:ALA) stock has witnessed strong buying recently and has jumped about 66.6% in one year. Despite the recent run-up, I believe the utility company has solid growth prospects ahead, supported by the economic reopening and continued momentum in its regulated utility assets.

Its high-growth midstream business is expected to deliver robust cash flows, reflecting higher export volumes. Meanwhile, the continued growth in its rate base, the addition of new customers, and cost efficiencies are likely to drive AltaGas’s profitability and its dividends. The company projects its 2021 EBITDA and EPS to grow by 12% and 20%, respectively, which indicates the strength of its business. 

Kinross Gold

Kinross Gold (TSX:K)(NYSE:KGC) stock is an attractive long-term bet trading under $30. It reported solid 1Q results recently, wherein its revenues rose 12% year over year, while its adjusted earnings jumped 51% from the prior-year period. 

I believe the company’s strong fundamentals, higher production volumes, and lower costs position it well to deliver robust earnings and cash flows ahead, which could drive its stock. Also, its strong balance sheet and superior exposure to gold bode well for future growth. It is also trading cheap compared to peers. Its next 12-month EV-to-EBITDA multiple of 4.9 reflects a significant discount to its peers. Meanwhile, Kinross Gold offers a decent dividend yield of about 1.5%.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends ALTAGAS LTD. and CINEPLEX INC.

More on Energy Stocks

Pumpjack in Alberta Canada
Energy Stocks

Is Imperial Oil Stock a Buy, Sell, or Hold for 2025?

Imperial Oil stock is in a precarious position, so what should investors consider as we head nearer to 2025?

Read more »

construction workers talk on the job site
Energy Stocks

Is Suncor Stock a Buy, Sell, or Hold for 2025?

Suncor Energy stock is trading at its decade-high on uncertainty in the oil market. Should you buy, sell, or hold…

Read more »

four people hold happy emoji masks
Energy Stocks

If You Like Exxon Mobil, Then You’ll Love These High-Yield Oil Stocks 

Here are three high-yield oil stocks with the potential to outperform over the medium to long-term.

Read more »

bulb idea thinking
Energy Stocks

2 No-Brainer Utility Stocks to Buy Now for Under $1,000

Canadian Utilities (TSX:CU) is a utility stock that may be worth a look in late 2024.

Read more »

dividend growth for passive income
Energy Stocks

Enbridge Stock: Buy, Sell, or Hold?

With a dividend yield of 6.4% and strong long-term growth profile, let's take a look at the investment case for…

Read more »

construction workers talk on the job site
Energy Stocks

Mattr Stock: Why Now Is the Time to Buy This Undervalued Gem

A top but undervalued growth stock is a buying opportunity today.

Read more »

sources of renewable energy
Dividend Stocks

Want Passive Income? This 5.4% Dividend Stock Pays Cash Every Month

This dividend stock doesn't just have a strong monthly dividend -- it also has an excellent future outlook.

Read more »

oil pump jack under night sky
Energy Stocks

Is Baytex Energy Stock a Good Buy?

Baytex Energy is a beaten-down TSX Energy stock that trades at a reasonable valuation in October 2024.

Read more »