3 Stocks Under $9 to Triple Your TFSA

Looking for big upside? This group of explosive penny stocks, including TransAlta Corporation (TSX:TA)(NYSE:TAC), might provide the pop you’re looking for.

| More on:
IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT

Image source: Getty Images

Hi there, Fools. I’m back to highlight three stocks under $9. While low-priced stocks carry plenty of risks, they can be a solid source of ideas when looking for

If you have big dreams of turning an average $27K TFSA into $100,000 in a few years, you’ll need explosive returns 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.

Power play

Leading off our list is electricity utility TransAlta (TSX:TA)(NYSE:TAC), which currently boasts a stock price of about $8.60 per share.

The phase-out of coal use for electricity has weighed heavily on TransAlta, but recent results suggest that the worst is behind it. Last month, the stock jumped 10% after TransAlta’s breakeven EPS topped estimates by $0.08. Meanwhile, revenue climbed 11.4% to $497 million.

Looking ahead, management sees full-year free cash flow guidance of $270 million to $330 million.

“As we look forward, we are seeing improving fundamentals in the Alberta market and continue work to competitively position our Alberta coal assets to deliver our coal-to-gas strategy,” said President and CEO Dawn Farrell.

TransAlta shares are now up more than 50% in 2019.

Stinging sensation

With a lowly stock price of about $7.40 per share, music services technologist Stingray Group (TSX:RAY.A) is next up on our list.

Stingray shares have slumped over the past year on concerns over slowing growth, providing value hounds with a possible opportunity. In the most recent quarter, net income jumped to $9.2 million as revenue spiked 133%. Meanwhile, adjusted free cash flow increased 229%.

Thanks to that strength, management boosted the quarterly dividend 7.7% to $0.07 per share.

“In the Radio segment, we surpassed the initially expected operational synergies and we anticipate to capture additional ones in the quarters ahead,” said President and CEO Eric Boyko. “We are also gaining market share momentum in certain key markets.”

Stingray remains off 21% over the past year.

Capping it off

Rounding out our list is oil and gas explorer Whitecap Resources (TSX:WCP), which currently sports a lowly stock price of $3.75 per share.

Although the shares have declined sharply over the past few months, Whitecap’s recent business update is fueling some optimism on Bay Street. Specifically, BMO maintained its bullish stance on the stock after Whitecap said it plans to cut capital spending by 17% — in turn, maximizing free cash flow — for the second half of 2019.

Meanwhile, management’s full-year production guidance remains unchanged at 70K-72K boe/day.

“Whitecap remains in an enviable position with premium assets that can generate significant free funds flow in the current commodity price environment and with a top tier balance sheet,” wrote the company in a statement.

Whitecap shares are down 55% over the past year.

The bottom line

There you have it, Fools: three amazing stocks under $9 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.

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 Brian Pacampara owns no position in any of the companies mentioned. Stingray is a recommendation of Stock Advisor Canada.

More on Investing

Target. Stand out from the crowd
Investing

2 Canadian Stocks I’m Buying Lots of This Year

I’m looking to snatch up exciting Canadian stocks like VieMed Healthcare Inc. (TSX:VMD) throughout 2023.

Read more »

grow money, wealth build
Dividend Stocks

Got $3,000? 3 TSX Growth Stocks to Buy in January 2023

Top TSX growth stocks that look appealing for 2023.

Read more »

woman data analyze
Dividend Stocks

Need Passive Income? Turn $15,000 Into $851 Annually

This passive-income stock is already climbing higher, up 16% in the last three months! Yet it's still valuable, so you…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Retirees: 3 Reliable Canadian Dividend Stocks to Buy Now for Passive Income

Top TSX dividend stocks now appear oversold.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Investing

2 TSX Stocks Safer for Investing in a Recession

These consumer companies will likely beat the broader market averages amid a recession. These stocks offer stability, income, and consistent…

Read more »

Dividend Stocks

For $100 in Passive Income Each Month, Buy 1,500 Shares of This REIT

REITs such as Northwest Healthcare can enable investors create a passive-income stream as well as benefit from capital gains.

Read more »

A colourful firework display
Dividend Stocks

2 Canadian Growth Stocks (With Dividends) to Start 2023 With a Bang

Here are two of the best dividend-paying Canadian growth stocks you can invest in at the start of 2023 and…

Read more »

sale discount best price
Dividend Stocks

4 Insanely Cheap Canadian Stocks to Buy for Passive Income

The recent bear market has created some incredible bargains, especially for those looking for passive income. Here are four cheap…

Read more »