3 Very Cheap (Under-$10) TSX Stocks to Buy Right Now

These cheap (under-$10) Canadian stocks have ample growth catalysts and could deliver stellar returns in the long term.

| More on:

The Canadian stock market bounced back strongly from the pandemic-led selloff, reflecting widespread vaccine distribution, the uptick in consumer demand, and steady economic improvement. Despite the bull run, there are plenty of stocks still trading cheap and are well within most investors’ reach. 

We’ll focus on three such very cheap (under-$10) Canadian stocks with ample growth catalysts that could deliver stellar returns in the long term.

A tech-based healthcare company

WELL Health Technologies (TSX:WELL) is my top pick for investors looking for solid growth at an attractive price of under $10. It delivered impressive returns in the past and appreciated over 208% in one year and over 2,057% in three years, thanks to its robust top-line growth and its ability to acquire and integrate high-growth businesses. 

During the most recent quarter, WELL Health’s top line soared 150%, reflecting benefits from acquisitions and growth in its telehealth program. Further, it posted a positive adjusted EBITDA, which is encouraging.

I believe WELL Health’s revenues could continue to grow at a breakneck pace owing to the continued momentum in software and services revenues. Furthermore, WELL Health’s robust acquisition pipeline will likely strengthen its revenues and boost its overall cash flows. In addition, the growing demand for its offerings, digitization of clinical assets, higher market share, and focus on cost-control initiatives could provide a strong underpinning for growth and lift its stock higher.

A storage company

Like WELL Health, StorageVault Canada (TSXV:SVI) stock has appreciated significantly in value on the back of its solid revenue growth and strategic acquisitions. Notably, the stock has gained over 95% in three years and 555% in five years. I expect the momentum in its business to sustain, driven by continued growth opportunities in its storage business. 

StorageVault is one of the fastest-growing storage companies and owns over 200 operating store locations across Canada, which is encouraging. With its dominant positioning and barriers to entry, the company remains on track to deliver solid future growth. I believe that the company’s rentable space could continue to rise on the back of acquisitions, thereby supporting its top line. Moreover, higher occupancy, improved operational efficiency, and substantial funds from operations support my bullish view. StorageVault stock is trading very cheap (under $10), making it a solid buy at current levels.

A cannabis stock

Investors could also consider buying Hexo (TSX:HEXO)(NYSE:HEXO) at current levels. Though it reported dismal third-quarter results, I believe its acquisition story looks appealing and is likely to drive its financials in the coming years. 

Its recent acquisition of Redecan would make it the largest licensed producer in the recreational cannabis market in Canada and would provide a platform for global growth. I expect the company’s solid acquisition portfolio will likely generate cost synergies and drive future cash flows.

Besides acquisitions, Hexo is also focusing on expanding its footprint in the lucrative U.S. market to strengthen its market share. Overall, I see solid upside potential in the stock and believe that the company has bright long-term prospects due to the higher acceptance among consumers and increased medical industry usage.

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 HEXO Corp.

More on Tech Stocks

A data center engineer works on a laptop at a server farm.
Tech Stocks

3 No-Brainer Data Centre Stocks to Buy With $500 Right Now

Data centres are going to be a huge growth opportunity in the next decade. And these are the top buys.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

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

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

AI microchip
Tech Stocks

Celestica Stock: Buy, Sell, or Hold?

Celestica's stock price has rallied 950% in the last five years. Will the AI boom send it even higher in…

Read more »

data analyze research
Tech Stocks

2 Ridiculously Cheap Growth Stocks to Buy Hand Over Fist in 2024

Well Health Technologies is a cheap growth stock to buy for its record-breaking results, massive revenue growth, and profitability.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

4 Reasons to Buy Kinaxis Stock Like There’s No Tomorrow

Kinaxis stock has a strong past. But there is even more to look forward to from this top tech stock.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

The Future of AI: Best Canadian Stocks to Buy Now

Here are two of the best AI-focused stocks in Canada that you can consider adding to your portfolio before it’s…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 TFSA Stocks to Buy Right Now With $7,000

Are you looking for growth stocks that can help you maximize the tax-free withdrawals of the TFSA? This article is…

Read more »

cloud computing
Tech Stocks

3 No-Brainer Tech Stocks to Buy Right Now for Less Than $1,000

Not all tech stocks are the risky investments that many think they are. Which is why we're focusing on the…

Read more »