When it comes to investing in a new stock, many investors might want to simply test the waters. Rather than get your feet soaking wet with a large investment, a few shares of a cheap stock can be a great start.
That’s why today we’re looking at stocks on offer under $15 per share – ones offering both growth potential and stability. Each is currently facing sector-specific challenges, but the stocks show promising outlooks that could make them great picks while they’re still affordable.
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WELL Health
WELL Health Technologies (TSX:WELL) is one of the leaders in Canada’s digital health sector. WELL is trading around $4.63, which makes it quite accessible for investors looking for an entry point into the tech-health crossover. Despite the broader struggles in the healthcare industry, WELL’s recent earnings reveal robust quarterly revenue growth of 42.3%.
Its forward Price/Earnings (P/E) ratio of 15.3 indicates optimism in its future profitability. As more medical services go virtual, WELL is positioned to grow its footprint with innovative solutions like telehealth and digital clinics.
Lundin stock
Currently priced around $14.27, Lundin Mining (TSX:LUN) is another solid option. The mining sector has seen volatility with fluctuating commodity prices and global demand, but Lundin’s quarterly revenue growth of 84.1% year-over-year shows resilience.
The cheap stock’s focus on expanding its copper and zinc production aligns well with future demand for these metals. These are crucial in renewable energy and electric vehicles. Moreover, Lundin has a strong balance sheet with $452.8 million in cash, giving it the flexibility to weather short-term sector struggles.
StorageVault
Finally, StorageVault Canada (TSX:SVI) is a cheap stock trading at $4.59 and focused on providing storage solutions – sector that often sees steady demand regardless of economic downturns. SVI has shown consistent operational growth, with a revenue increase of 4% year-over-year.
Though the cheap stock’s operating margins are healthy at 24%, its high debt-to-equity ratio of 1,133.2% is something to watch. However, the storage sector remains lucrative, especially with the rise of e-commerce and urbanization trends.
Key takeaways
The key challenge for all three of these stocks is the broader market’s uncertainty. For WELL Health, competition in the telehealth space and regulatory hurdles could pose risks. Similarly, Lundin Mining faces the classic volatility of the mining industry, particularly as commodity prices respond to global demand shifts. And for StorageVault, its high debt load could be problematic in a rising interest rate environment, but the company’s steady cash flow generation is a positive sign.
From a financial perspective, all three stocks are managing well despite the tough market conditions. WELL’s earnings before interest, taxes, depreciation and amortization (EBITDA) of $103.8 million indicate solid operational performance. While Lundin Mining’s EBITDA of $1.3 billion showcases its strength in the resource sector. SVI’s EBITDA of $160.3 million reinforces its place in the storage market, despite operating in a highly leveraged environment.
Bottom line
What makes these stocks attractive is their future potential. WELL Health continues to expand its services and innovate in healthcare tech, which will likely keep driving revenue growth. Lundin Mining is set to benefit from the global green energy transition, with copper demand forecasted to surge. Meanwhile, StorageVault Canada, with its increasing need for physical storage solutions in a digital world, remains a consistent performer even in times of economic uncertainty.
All three cheap stocks offer intriguing growth opportunities while trading under $15. Despite current sector struggles, financials and future outlooks make each worth considering for investors looking to pick up stocks with solid long-term potential.
