3 Under-$10 TSX Stocks to Buy in July

These three stocks are cheaper than cheap, and could produce incredible returns as they continue to climb in the next year.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published July 17, 2024 8:30 pm EDT

Investors seeking affordable yet high-potential stocks on the TSX should consider seeking out value – not just in terms of share price, but fundamentals as well.

That’s why today we’re considering WELL Health Technologies (TSX:WELL), StorageVault Canada (TSX:SVI), and NorthWest Healthcare Properties REIT (TSX:NWH.UN). These companies are trading under $10 per share and have demonstrated strong growth potential and stability, making them attractive choices for July 2024.

dividends grow over time — Source: Getty Images

WELL stock

Priced around $5, WELL Health is a telehealth and healthcare technology company that has gained analysts’ favour. The company’s aggressive growth through acquisitions and its expanding network of clinics and digital health services support its strong revenue growth. WELL Health’s diversified healthcare offerings and consistent performance make it a reliable investment.

WELL Health has been a standout performer in the healthcare sector, capitalizing on the growing demand for digital health services. In Q1 2024, WELL reported record quarterly revenue of $231.6 million, up 37% year-over-year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 6% to $28.3 million. Plus, adjusted net income rose to $20.2 million from $14.1 million in Q1 2023.

The company achieved a record 1.3 million patient visits in Q1 2024, a 34% increase from the previous year, driven by both organic growth and strategic acquisitions. WELL’s expansion into the U.S. market and its growing network of clinics have solidified its position as a leader in telehealth. Analysts are optimistic about WELL’s future, given its robust financial performance, strategic acquisitions, and the continued growth of the digital health market.

StorageVault

Trading around $4.65, StorageVault Canada is favoured for its growth in the self-storage sector. The company has been actively acquiring storage properties, which boosts its asset base and potential revenue. Analysts are optimistic due to the company’s strategic acquisitions and increased dividends, making it a solid defensive stock with stable cash flows.

StorageVault is a leading player in the self-storage industry, with a strategic focus on acquiring and managing storage properties across Canada. In Q1 2024, SVI reported revenue of $69.8 million, a 21% increase year-over-year, and net income of $7.4 million, up from $5.6 million in Q1 2023. The company’s adjusted funds from operations (AFFO) also saw an 18% increase, reaching $18.3 million.

SVI’s growth is driven by its aggressive acquisition strategy and improved occupancy rates. The recent acquisition of additional storage properties has strengthened its market presence. And the company’s decision to increase its quarterly dividend reflects its confidence in future growth. Analysts favour SVI for its stable cash flows, defensive business model, and potential for continued expansion in the self-storage sector.

NorthWest REIT

Priced at about $5, NorthWest Healthcare is a top pick for its resilience and growth in the healthcare real estate sector. The company owns and operates healthcare properties globally, ensuring steady rental income even during economic downturns. Plus, its acquisition strategy in international markets further enhances its growth potential, coupled with a dividend yield of around 7.2%.

NorthWest Healthcare Properties Real Estate Investment Trust (REIT) is a premier healthcare real estate investment trust with a diversified portfolio of properties across Canada, Europe, and Australia. In Q1 2024, NorthWest stock reported revenue of $102.5 million. That was a 7% increase year-over-year, and net operating income (NOI) of $58.3 million, up 6% from Q1 2023. The REIT maintained a high occupancy rate of 96%, highlighting its strong tenant base and stable cash flows.

NorthWest stock’s strategic acquisitions and consistent performance make it a reliable investment. Especially in the healthcare sector, which tends to be resilient during economic downturns. The REIT’s monthly distribution of $0.067 per unit provides an attractive yield for income-focused investors. Analysts appreciate NorthWest for its stability, defensive qualities, and growth potential through international expansion.

Bottom line

WELL Health, StorageVault, and NorthWest REIT are excellent choices for investors looking for affordable yet promising stocks on the TSX. Their strong financial performances, strategic growth initiatives, and market positioning make them stand out in their respective sectors. As the healthcare and storage industries continue to grow, these stocks offer significant upside potential and stability, making them worthy additions to any diversified portfolio.