3 Stocks Under $5 to Create a 7-Figure Net Worth

Hi there, Fools. I’m back to highlight three stocks under $5 hitting new 52-week lows. While low-priced stocks carry plenty of risks, they can be a source of ideas when looking for

• small, obscure, and ignored companies;
• dirt-cheap bargains; or
• intriguing turnaround situations.

If you have big dreams of turning an average $27K TFSA into a million bucks in 20 years, you’ll need an annual return of at least 20% to do it. Although low-priced stocks are on the volatile side, the upside return potential might be worth the risk.

Let’s get to it.

Aim low

Leading off our list is embattled loyalty program specialist Aimia (TSX:AIM), which currently sports a price of $3.81 per share.

The stock has slumped in recent months as the company struggles to grow after selling its signature Aeroplan loyalty program to Air Canada earlier this year. With that said, the risk/reward tradeoff might now be juicy enough to jump on.

Currently, the stock trades a price-to-book of 0.8. Moreover, Aimia remains on track to deliver profitability in 2020.

“We are a more efficient, nimbler business with a clear plan to deploy capital,” said CEO Jeremy Rabe in the most recent quarter. “On the back of the strategic direction announced in March, we are building real momentum with employees and customers.”

Aimia shares are up 3% in 2019.

Rail rebound

With a price per share of just $2.20, transportation giant Bombardier (TSX:BBD.B) is next on our list of penny stocks.

Management continues to downsize operations in an attempt to improve profitability, but shareholders are growing increasingly concerned. On the bright side, Bombardier’s rail car is turning around, having landed several major contracts in 2019 alone.

Most recently, Bombardier signed a contract to provide 74 additional double-deck coaches to Israel Railways.

“We are very proud to have signed a seventh consecutive order with Israel Railways, a result of exemplary collaboration and customer satisfaction,” said Bombardier executive Michael Fohrer. “It is testimony to the superior quality and reliable performance in customer service of all coaches delivered up to this point.”

Bombardier shares are up 9% in 2019.

Cheap pot

Rounding out our list is embattled is marijuana producer CannTrust Holdings (TSX:TRST)(NYSE:CTST), which currently sports a price of about $3.60 per share.

CannTrust shares continue to fall, with the latest beating coming today: an 11% decline on news that management is voluntarily halting all sales and shipments amid Health Canada’s recent investigation.

The stock is now down a whopping 44% since Health Canada notified CannTrust on Monday about some unlicensed growing at its Ontario greenhouse.

“CannTrust is working closely with the regulator through the review process and expects to provide further detail of the duration of the hold and other developments as they become available,” wrote the company in a statement today.

CannTrust shares are down a whopping 45% so far in 2019.

The bottom line

There you have it, Fools: three amazing stocks under $5 worth checking out.

As always, don’t see them as formal recommendations. Instead, view them as a starting point for more research. Low-priced stocks are particularly fickle beasts, so plenty of homework is still required.

Fool on.