Stock investing is the next best thing to personal savings for individuals desiring to grow their meagre capital. The learning curve isn’t difficult for as long as you can learn the basics and understand the fundamentals. You earn a windfall if you can “buy low and sell high.” But the concern of neophyte investors is the entry price.
The prevailing impression is that equity investments are expensive. In truth, you can buy shares of companies for less than $10. Don’t be misled by the low price, because some of the names are prestigious in their respective industries. Also, the stocks are top performers, so they have the opportunity to grow your money over time.
Maxar Technologies (TSX:MAXR)(NYSE:MAXR) is a Colorado, U.S.-based company and a leading global provider of advanced space technology solutions. This five-decade-old firm serves commercial and government clients worldwide.
The nearly $500 million company is known for having the end-to-end capabilities in satellites, robotics, Earth imagery, geospatial data, analytics, and insights. For $6.70 per share, you are investing in the new space economy. With the increasing demand for Maxar’s technology, analysts see a potential 300% stock appreciation in the near term.
Big oil producer
Crescent Point Energy (TSX:CPG)(NYSE:CPG) is a popular energy stock on the TSX. Currently, the shares of this $2.9 billion exploration and production (E&P) company are trading at $5.42 per share. That’s affordable and quite a steal considering the price once stood at a high of $11.53.
CPG is up +30.9% year to date and analysts are anticipating the stock to rally and rise by +121.4% to $12 in the next 12 months. Investors will get an added boost with the 0.76% dividend yield. Crescent Point used to pay a high 6.7% dividend but a cut was necessary to free some cash for debt repayment.
Aerospace and defence
The shares of Bombardier (TSX:BBD.B) are a lot cheaper compared with Maxar Technologies and Crescent Point. This aerospace and defence stock is currently trading at $2.36. But in terms of market capitalization, Bombardier is worth $6.4 billion as of this writing.
Bombardier has been operating for 77 years already and has a carved a name on the TSX. The stock is heavily traded because it’s considered a high-growth cyclical stock. It started as a snowmobile maker, but the company is now a large manufacturer of business jets, regional airliners, and mass transportation equipment.
Protect your investment
Keep in mind that investing in stocks is risky. The three stocks cost less than $10, but you have to consider the accompanying risks their respective sectors. Volatility is ever present in the stock market. Individual companies also deal with industry issues and internal problems that cause the spikes and dips in stock prices.
Investors should not purchase the MAXR, CPG, and BBD.B solely because the prices are relatively cheaper. Careful analysis of their businesses is necessary. Always look for potential upsides. If you’re unsure, check out other stocks below $10 that aligns with your risk appetite.
When you buy heavily cyclical stocks at low prices… and then hold the shares until the cycle reaches its peak… you can make a very healthy profit.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned. Maxar is a recommendation of Stock Advisor Canada.