Top Under-$2 Canadian Stocks to Buy Hand Over Fist in September 2022

These two cheap Canadian stocks could yield high returns on your investment in the long run.

| More on:

Stocks in Canada have seen a sharp selloff in the last few months. Despite starting 2022 on a positive note, high inflationary pressures and rising interest rates have taken a toll on investors’ sentiments by raising the possibility of a near-term recession. Nonetheless, it could still be the right for long-term investors to buy some fundamentally strong stocks in bulk at a big bargain.

In this article, I’ll highlight two top Canadian stocks that currently trade under $2 per share but might not remain cheap for very long.

Denison Mines stock

Denison Mines (TSX:DML)(NYSE:DNN) is my first stock pick to consider if you’re looking to buy some cheap stocks in Canada right now. It’s a Toronto-based uranium mining firm with a market cap of about $1.4 billion. DML stock currently trades at $1.76 per share without any major change on a year-to-date basis.

Notably, Denison Mines has about 95% interest in the Wheeler River project, which is the biggest undeveloped uranium project in the eastern Athabasca Basin. The first production at the Wheeler River project is expected to start in 2024. Also, the company has about 22.5% and 66.9% interest in other uranium projects like McClean Lake Uranium Mill and Waterbury Lake project, respectively.

In recent weeks, many developed nations, including Japan and some western countries, have shown willingness to increase their nuclear power generation capacity by restarting their idled nuclear reactors. As uranium is the main fuel used in nuclear reactors, the demand outlook for uranium is getting brighter, which could lead to a big long-term rally in uranium prices. These developments also could trigger a sharp rally in DML stock as higher uranium prices help miners expand their profit margins. That’s why I consider this cheap, under-$2 Canadian stock worth buying right now to hold for the long term.

IAMGOLD stock

IAMGOLD (TSX:IMG)(NYSE:IAG) is another cheap Canadian stock to consider buying in September. The shares of this mid-tier gold mining company currently trade with 58% year-to-date losses at $1.66 per share, despite starting 2022 on a strong note.

Apart from operating its three main mines in West Africa, Canada, and South America, IAMGOLD is currently focusing on the development of its Côté Gold project in northeastern Ontario. The first production at its new Côté Gold project is likely to start in the first quarter of 2024, with an expected initial mine life of about 18 years.

In the second quarter, IAMGOLD’s total revenue rose by 25.8% YoY (year over year) to $334 million based on an average realized gold price of around US$1,799 per ounce. With the help of its strong production activity at its Essakane mine during the quarter, the company reported a 15.3% YoY rise in its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter to $110 per share.

While IAMGOLD’s financial growth might not look very impressive in the near term due to rising inflationary pressures, its long-term growth outlook remains solid, with high expectations from its Côté Gold project’s output. Considering these expectations, a massive year-to-date decline in its stock makes it look cheap to buy for the long term.

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 Metals and Mining Stocks

Concept of multiple streams of income
Stocks for Beginners

Lock Up This 9.2% Dividend Yield From a Top Royalty Stock

Royalty stocks have a strong advantage when it comes to creating passive income for investors. But this one has the…

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

Is First Quantum Minerals Stock a Good Buy Right Now?

First Quantum is a TSX stock that trades 61% below all-time highs. However, the mining stock still trades at a…

Read more »

nugget gold
Metals and Mining Stocks

The Best Gold Stock to Invest $1,000 in Right Now

Here are two of the best Canadian gold stocks that can yield some eye-popping returns in the long run.

Read more »

nugget gold
Stocks for Beginners

The Ultimate Mining Stock to Buy With $1,000 Right Now

This mining stock just saw a drop, but don't let that keep you from diving in. This miner is due…

Read more »

A plant grows from coins.
Metals and Mining Stocks

Canadian Mining Stocks: Buy, Sell, or Hold?

Explore 2025’s top Canadian mining stocks – gold, uranium, and base metals offer big potential in a dynamic, commodity-driven market.

Read more »

farmer holds box of leafy greens
Metals and Mining Stocks

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

Nutrien stock has lost 34% of its value just this year alone and looks incredibly cheap today. Yet, secular trends…

Read more »

Canada national flag waving in wind on clear day
Tech Stocks

Trump Trade: Canadian Stocks to Watch

With Trump returning to the presidency, there are some sectors that could boom in Canada, and others to watch. But…

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Invest $7,000 in This Dividend Stock for $672 in Passive Income

High yield can be an essential requirement when you need to start even a modestly sized passive income with a…

Read more »