2 Under-$5 TSX Stocks Beginners Should Buy Today

Here are two cheap and fundamentally strong stocks beginners can buy today that are trading under $5 per share.

| More on:

The Canadian market has turned positive again this week after declining last week due to concerns about the Delta variant and slowing global economic growth. Investors’ receding fears about the new COVID variants’ negative impact on the economy are helping the stocks inch up further. While the TSX Composite Index is trading at its record high, beginners might still find it difficult to pick cheap stocks to buy right now. Here are two cheap and fundamentally strong stocks beginners can buy today that are trading under $5 per share.

Denison Mines stock

Denison Mines (TSX:DML)(NYSE:DNN) is a Toronto-based uranium mining firm with a market cap of about $1.1 billion. The company mainly also focuses on the acquisition, exploration, and development of uranium assets. Its stock is trading at $1.36 per share with 62% year-to-date gains.

Denison Mines is currently working on its ambitious Wheeler River project — the largest undeveloped uranium project in the eastern portion of the Athabasca Basin. The company has nearly 90% interest in this project. Denison Mines expects to start pre-production activities at the Wheeler River project this year after getting the required regulatory approvals. The first production from the project’s Phoenix uranium deposit is expected in 2024. Also, Denison Mines has about 22.5% interest in McClean Lake Uranium Mill, which accounts for more than 12% of global uranium production.

If approved, I expect the Wheeler River project to help Denison Mines produce high-grade uranium at a low cost in the long term and steer the company towards sustainable profitability. These factors could help its stock keep soaring. That’s why new investors can buy its stock for the long term right now.

Secure Energy Services stock

Secure Energy Services (TSX:SES) is a Calgary-based energy services company with an interesting business model. It focuses on providing customers solutions to upstream oil and natural gas companies with the help of its network of midstream infrastructure assets in Western Canada and some parts of the United States. Secure Energy currently has a market cap of $1.3 billion, as its stock trades at $4.07 per share with about 65% gains in 2021 compared to an 18% rise in the TSX Composite benchmark.

Recently, Secure Energy acquired an Alberta-based energy and environmental waste services firm Tervita Corporation. This deal is likely to expand Secure Energy’s services portfolio and accelerate its financial growth in the coming years due to an increase in its scale and operational efficiencies.

The global pandemic crashed the energy market last year — badly hurting Secure Energy’s top line, as its total revenue tanked by 85% from a year ago. That’s why the company burnt nearly $85.2 million last year after posting $5.8 million adjusted net profit in 2019. Nonetheless, a sharp recovery in oil prices and surging energy demand amid reopening economies could give another push to Secure Energy’s financial growth in the coming quarters. This could be one of the reasons why Street analysts expect the company to report solid profitability in the second half of 2021.

While Secure Energy stock has already seen a stellar rally this year so far, its fast-improving, long-term fundamentals make it one of the best Canadian stocks to buy for beginners right now.

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.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Stocks for Beginners

construction workers talk on the job site
Energy Stocks

Best Stock to Buy Right Now: Baytex vs Suncor?

Suncor and Baytex stocks both look like solid companies offering growth and dividends. But which is the better buy?

Read more »

profit rises over time
Top TSX Stocks

3 Reasons to Buy Enbridge Like There’s No Tomorrow

Have you considered buying Enbridge (TSX:ENB)? Here are 3 reasons to buy Enbridge today for lasting growth and income.

Read more »

An investor uses a tablet
Stocks for Beginners

If I Could Only Buy 2 Stocks in the Last Half of 2024, I’d Pick These

I’m looking to buy two stocks over the next month. Here’s a look at my picks and why you should…

Read more »

dividends grow over time
Stocks for Beginners

The Smartest Growth Stock to Buy With $2,000 Right Now

Do you have $2,000 to invest for the long term? These three TSX stocks have and will continue to deliver…

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 »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »

grow money, wealth build
Dividend Stocks

3 Top High-Yield Stocks to Buy in November

If you want passive income, high yield dividend stocks are the clear choice. These are the best, and safest, out…

Read more »

Stocks for Beginners

Where will Loblaw Stock be in 5 Years?

Want a great food stock that can provide growth and income? Here's why Loblaw stock can offer that and more.

Read more »