As equities have historically outperformed the returns of other asset classes, investing in stocks can help you create significant wealth in the long term. Further, investors don’t need a lot of capital to start investing in the equity markets, as numerous stocks with solid fundamentals and the potential to deliver above-average returns are trading well below their highs, presenting a solid buying opportunity.
With this backdrop, let’s look at the three best Canadian stocks to buy with $300 right now.
Lightspeed
Shares of the technology company Lightspeed (TSX:LSPD) have gained over 27% over the past year. However, LSPD is still well below its highs and trading extremely cheap on the valuation front. For instance, Lightspeed stock is trading at an enterprise value-to-sales (EV/Sales) multiple of 2.1, which is near an all-time low. While Lightspeed stock offers significant value near the current levels, it continues to deliver solid financial performance that supports its bull case.
Lightspeed provides a cloud-based commerce platform. It focuses on small- and medium-sized businesses in the retail and restaurant sectors. The company is well-positioned to benefit from the shift in selling models towards multi-channel platforms as it will drive demand for its payment solutions. Further, increased investment in technology by small- and medium-sized merchants will likely bolster the demand for Lightspeed’s products.
Besides durable revenue growth, Lightspeed stock will likely get a boost from its focus on expanding its customer base with high gross transaction value (GTV). These customers have the capacity to adopt its multiple modules, which will drive its average revenue per user and lower churn rate. Along with organic growth, Lightspeed’s strategic acquisitions will likely expand its customer locations and strengthen its competitive positioning, supporting its growth.
WELL Health
WELL Health Technologies (TSX:WELL) stock is an attractive long-term investment. This digital healthcare company has been consistently and rapidly growing its revenues. Moreover, it is profitable. However, what stands out is that WELL Health continues to drive patients to its platform despite economic reopening. Further, its stock is trading at an EV/Sales multiple of 1.5, much lower than its historical average, making it too cheap to ignore near the current levels.
WELL Health has achieved record revenues in 19 consecutive quarters thanks to the continued growth in its omnichannel patient visits. In addition, WELL Health expects to surpass $900 million in annual revenue by 2024, driven primarily by organic expansion. Moreover, the company is actively pursuing profitable growth strategies, which is driving its cash flows.
Thanks to its solid organic sales and higher cash flows, WELL Health is growing its market share via accretive acquisitions. Besides, the company’s investments in artificial intelligence technology will help develop new products, which will accelerate growth.
Dollarama
Dollarama (TSX:DOL) is a low-volatility stock offering high growth. Dollarama remains relatively immune to wild market swings thanks to its defensive business model. Moreover, Dollarama stock has consistently outperformed the broader markets with its gains. For instance, DOL stock has grown at an average annualized rate of over 24% in the past five years, delivering a total return of more than 196%.
Dollarama is Canada’s leading value retailer, selling products at low fixed prices. Thanks to its value offering, it drives value-oriented consumers to its stores. Moreover, its extensive store network and focus on reducing merchandise costs support its top- and bottom-line growth. The company has been growing its top and bottom lines at a double-digit rate. Further, it is returning cash to its shareholders through higher dividend payments.
Overall, Dollarama is a top stock for investors seeking growth, stability, and income.
