3 Cheap Stocks to Buy With $300 in February

These Canadian stocks are trading at multi-year lows, and represent good buying opportunities.

| More on:
TSX Today

Thanks to the resurgent virus and the recent selling in equities, several top TSX stocks are trading cheap, presenting a solid buying opportunity for the long term. So if you are sitting on some extra cash, consider adding a few top-quality stocks to your portfolio now. Here are my top three picks that look attractive at current levels.

Air Canada

Air Canada (TSX:AC) impressed with its Q3 performance that marked a sharp recovery in its revenue and capacity. Further, its bottom line performance improved significantly. However, the spread of the Omicron variant of the coronavirus and equity dilution restricted the upside in Air Canada stock. 

While near-term headwinds could continue to impact Air Canada’s financial and operating performance, I am bullish about its long-term prospects and expect it to benefit significantly from the recovery in air travel demand. Further, its stock is still trading at an over 50% discount from pre-COVID levels, representing a good entry point for long-term investors. 

Air Canada’s operating capacity is expected to increase with the easing of travel measures. Further, higher bookings, revival in corporate demand, and recovery in international travel will drive its financials and support the uptrend in its stock. Moreover, the continued momentum in its cargo business and revenue diversification augurs well for future growth. 

Overall, Air Canada remains well-positioned to capitalize on the recovery in air travel and could deliver stellar returns. 

Cineplex 

Like Air Canada, Cineplex (TSX:CGX) was hit hard by the pandemic, leading to a massive correction in its stock price. While the easing of restrictions amid ongoing vaccination led to the reopening of its entertainment venues, the resurgence of the newer variant of the virus and capacity restrictions limited Cineplex’s ability to capitalize on the recovery in demand. 

Nevertheless, Cineplex marked a strong recovery in Q4, which indicates that the normalization of its operations would boost its financials and drive its stock price higher. Its revenues improved significantly on the back of a stellar recovery in theatre attendance. Furthermore, Cineplex managed to cut losses significantly, which is encouraging. 

I am upbeat about Cineplex’s prospects and expect its revenue and profitability to improve in the coming quarters on the back of increased capacity, a new subscription program, higher theatre attendance, a strong slate of movies, and normalization of its operations. Its stock is trading cheap and represents a good buying opportunity at current price levels. 

Lightspeed 

Thanks to the significant selling in the recent past, Lightspeed (TSX:LSPD)(NYSE:LSPD) stock is trading at a multi-year low valuation and provides a solid buying opportunity. I am bullish about Lightspeed’s prospects, especially as it continues to grow its business rapidly. 

While Lightspeed stock looks attractive on the valuation front, its growing subscriptions revenues, higher penetration of payments solutions, recent acquisitions, and increase in customer base augur well for future growth. 

Lightspeed’s organic revenues are growing fast, while its entry into high-growth markets, new product launches, and higher revenues from existing customers will likely accelerate its growth rate. Moreover, geographic expansion, increasing scale, and favourable sector trends support my outlook. 

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 CINEPLEX INC. and Lightspeed Commerce.

More on Tech Stocks

Nvidia Voyager Headquarters
Tech Stocks

Why Nvidia Stock Rallied (Again) on Tuesday

The chipmaker is expected to report earnings this evening.

Read more »

hand stacking money coins
Tech Stocks

3 Growth Stocks That Are Screaming Buys in November

The market might be soaring, but there are still lots of deals to be had. Here are three discounted stocks…

Read more »

Rocket lift off through the clouds
Tech Stocks

Why I’d Buy Constellation Software Stock, Even at Today’s Prices

Despite trading at a relatively frothy multiple, Constellation Software (TSX:CSU) stock still looks like a buy right now.

Read more »

profit rises over time
Tech Stocks

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

Solid revenue growth, improving profitability, and its focus on AI-powered supply chain solutions make Kinaxis stock really attractive to buy…

Read more »

Muscles Drawn On Black board
Tech Stocks

3 No-Brainer Tech Stocks to Buy Right Now for Less Than $500

If you have a bit of cash you're looking to set aside, these are the easiest tech stocks for some…

Read more »

how to save money
Tech Stocks

3 Reasons to Buy Shopify Stock Like There’s No Tomorrow

Here's why Shopify (TSX:SHOP) stock certainly looks like a buy for long-term growth investors looking for a top TSX stock.

Read more »

A child pretends to blast off into space.
Tech Stocks

2 Compelling Reasons to Snap Up Constellation Software Stock Now

Here's why I think Constellation Software (TSX:CSU) is a top-tier growth stock to own for the long-term right now.

Read more »

hot air balloon in a blue sky
Tech Stocks

3 TSX Stocks Still Soaring Higher With Zero Signs of Slowing

These three stocks may be soaring higher and higher, but don't let that keep you from investing – especially with…

Read more »