2 No-Brainer Stocks to Buy With $20 Right Now

These under-$20 Canadian stocks have solid fundamentals and significant growth prospects, making them compelling investments.

| More on:

Investing in stocks solely based on their low dollar value can be a risky strategy, as the price of shares alone does not reflect the company’s potential for growth or underlying value. Moreover, there could be several reasons why a stock is trading at a low price, and it could indicate issues within the company. However, this also doesn’t mean that all low-priced stocks are bad investments. For instance, many Canadian stocks with solid fundamentals and significant growth prospects are trading below $20.

With this backdrop, let’s look at two no-brainer stocks to buy with $20 right now.

StorageVault Canada

StorageVault Canada (TSX:SVI) is a dominant player in the Canadian storage industry. It owns 218 locations and over 12.2 million square feet of rentable storage space across 106,597 units. The company’s strategy of owning and operating storage facilities in Canada’s top markets and focusing on creating a network of multiple stores augurs well for growth. This network is further enhanced by complementary services such as portable storage units and records management, enabling StorageVault to capitalize on economies of scale.

The Canadian storage market is experiencing steady demand due to the growing population and smaller living and workspaces. This favourable market environment has allowed StorageVault to achieve significant financial growth. In 2023, the company’s revenue increased by 10.3%, while its net operating income (NOI) grew by 10%. Despite challenges such as slow home sales and a decline in renovation activities, StorageVault reported same-store revenue and NOI growth of 3.9% and 3.6%, respectively, during the first half of 2024.

StorageVault’s growth strategy hinges on acquisitions and expanding its existing facilities and service offerings. Since 2015, the company has completed acquisitions totalling over $2.39 billion. These acquisitions have significantly increased the company’s rentable space, positioning it to further enhance its revenue streams. Additionally, StorageVault’s emphasis on increasing rent per square foot is expected to support its profit margins.

Looking forward, StorageVault is focused on maximizing free cash flow through continued revenue and NOI growth. The company is also taking measures to reduce costs, which will support its earnings and share price.

WELL Health

Investors could consider buying WELL Health (TSX:WELL) stock for under $20. It is a leading digital healthcare company and one of Canada’s largest owner-operators of outpatient medical clinics. The company is growing rapidly and delivering solid financials. While WELL Health consistently delivers substantial revenue and profitable growth, its stock is trading at the next 12-month enterprise value-to-sales (EV/sales) multiple of 1.6, which is near an all-time low.

The combination of WELL Health’s solid growth and low valuation make it a compelling investment. Further, the momentum in WELL Health’s business will likely be sustained, reflecting higher omnichannel patient visits. Moreover, acquisitions will further accelerate its growth. In addition, WELL Health is optimizing its operations to boost organic growth and profitability. Also, it is prioritizing capital-efficient growth opportunities to increase cash flows, reduce debt, and minimize share dilution.

In summary, WELL Health is poised to deliver significant growth as it strengthens its market leadership in Canada and optimizes its operations. Moreover, the company is also investing in artificial intelligence technology to develop innovative products that will drive future growth.

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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

chart reflected in eyeglass lenses
Tech Stocks

Top Canadian AI Stocks to Watch in 2025

Celestica (TSX:CLS) stock and another Canadian AI stock are worth watching closely this holiday season.

Read more »

woman looks out at horizon
Investing

Is Sun Life Financial Stock a Buy for its 4% Dividend Yield?

Let's dive into whether Sun Life Financial (TSX:SLF) stock is a buy for its dividend yield alone, or if this…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

1 Magnificent Energy Stock Down 17% to Buy and Hold Forever

Down over 17% from all-time highs, Headwater Exploration is a TSX energy stock that offers you a tasty dividend yield…

Read more »

Man data analyze
Investing

Want $1 Million in Retirement? 2 Simple Index Funds to Buy and Hold for Decades

Just invest in a S&P 500 index fund and do nothing.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Thursday, November 21

Escalating geopolitical tensions and U.S. economic data remain on investors’ radar today as the TSX continues to hover above the…

Read more »

think thought consider
Investing

Should You Buy Couche-Tard Stock Aggressively Before Nov. 25?

Here’s what could help Couche-Tard stock rebound after its upcoming earnings event.

Read more »

calculate and analyze stock
Bank Stocks

4% Dividend Yield? I Keep Buying This Dividend Stock in Bulk!

If you find the perfect dividend stock, you never have to worry about investing again. And that's what you get…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

Should You Buy the 3 Highest-Paying Dividend Stocks in Canada?

A few dividend stocks saw a sharp correction in November, increasing their yields. Are they a buy for high dividends?

Read more »