3 Cheap Stocks Under $5 That I’d Buy Right Now

Corus Entertainment Inc. (TSX:CJR.B) and these two other stocks are cheap buys that could produce great returns.

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While I don’t put a lot of importance on the overall share price a stock trades at, those that trade in the single digits typically have low market caps and lots of room to grow. Berkshire Hathaway Inc. may be too expensive to buy for the average investor, and even Amazon.com, Inc. can be out of reach for some.

Low-dollar shares are attractive for the opposite reason, because the stocks can provide a lot of liquidity, and even a small increase in price can generate a big return. Below are three stocks that trade below $5 a share that could produce significant returns for investors that buy today.

Corus Entertainment Inc. (TSX:CJR.B) has struggled to stay anywhere near $5, and that’s a big fall from where it was trading at just a year ago. Poor quarterly results and concerns about cord cutting have left investors bearish on Corus, as it has continued its downward spiral.

However, the fundamentals for Corus remain strong, and with a pretty good position in the market, it’s likely the stock will rebound, and when it does, that could result in significant returns for shareholders willing to buy the stock today.

The stock is significantly undervalued and trading well below its book value, and even with a sharp cut to its dividend, it still pays a yield of over 5% to its shareholders. Corus is an oversold stock, and it’s a great time to scoop up the stock at a significant discount.

Westport Fuel Systems Inc. (TSX:WPRT)(NASDAQ:WPRT) is a green stock with a lot of long-term potential, but it may still be years away before demand for its low-emissions engine takes off. It has operations in various parts of the world, which can help offer investors some much-needed diversification.

Since the start of 2018, Westport’s stock has crashed around 30%, as investors remain bearish given the company’s struggling financials. In just one of the past five quarters has Westport been able to stay out of the red, and that was only due to income from discontinued operations.

However, sales were up 13% in its most recent quarter, and if the company can build on that growth then we could see investors return. Westport is a long-term play that has a lot of potential upside given the trend we’re seeing toward greener energy.

Precision Drilling Corp. (TSX:PD)(NYSE:PDS) has been doing well this year, as the stock is up over 25% year to date on stronger results. Although drilling was down the past few years during the downturn in the oil and gas industry, things have been picking up, and so too have Precision Drilling’s financials.

Last year, sales were up nearly 40%, and in the company’s most recent quarter, its top line had grown by 16%. Staying out of the red continues to be a problem, but that too will go away if we continue to see oil prices rise.

Precision Drilling is trading below its book value and has a lot to offer investors, and if you’re bullish on the oil and gas industry, then this is one stock you should consider buying.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor David Jagielski has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. The Motley Fool owns shares of Amazon.

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