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3 Stocks Under $10 That Could Double by 2021

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Cheap stocks have a lot more room to grow and are much more accessible. Lower-priced stocks tend to be flying under the radar. But when they become mainstream, nearly everyone can afford some exposure, which is what drives the price higher. 

With that in mind, here are my top three picks for stocks priced under $10 that could deliver a 100% or more gain by the end of 2021. 

GoodFood

2020 was the perfect year to try online grocery delivery and meal kits. Everyone was confined to their homes, and there were long queues for groceries during the height of the lockdown. That pushed more families to try online grocery startup GoodFood Market (TSX:FOOD) for the first time this year. 

Unsurprisingly, the stock price has tripled this year. It’s now trading at $8.7, which implies a market capitalization of just $583 million. Compare that to its private startup rivals such as Instacart, which is worth US$17.7 billion or CA$23 billion after its latest funding round. 

In my opinion, GoodFood should be a unicorn (worth over $1 billion) like any other tech startup with this much potential. That’s why the stock could easily jump from $8.7 to $16 or more next year. Keep an eye on it.

WELL Health

I’ve been bullish on telehealth and WELL Health Technologies (TSX:WELL) since last year. It seems inevitable that patients will connect with doctors via video conferencing and text messages for non-emergency care. However, this virtual clinic has gained much more traction during the pandemic. 

WELL Health stock is up an astounding 370% year to date. Recently, it became Canada’s latest tech unicorn when its market capitalization passed $1 billion. In my opinion, there’s much more room to grow. Healthcare is probably one of the largest industries in the world. Trillions of dollars are spent in North America alone. 

WELL health’s network of clinics, medical record system, telehealth services and access to the U.S. market make it a prime disruptor of this industry. I can see the stock doubling by the end of next year. But its returns could be far more impressive over the longer term. 

Fairfax India

Prem Watsa’s reputation as Canada’s Warren Buffett has taken a hit in recent years. His core investment and insurance company has lost 25% of its value this year. Meanwhile, his bet on Indian stocks via Fairfax India Holdings (TSX:FIH.U) has performed much worse. The stock lost 42% of its value between February and October this year.

Since then, the stock price has jumped 28%. News of a vaccine bolstered India’s chances of an economic recovery. Fairfax’s portfolio companies have seen their value surge in recent weeks. Meanwhile, the stock is still trading for less than the value of its net assets. 

Book value per share, according to its latest quarterly report, is $15.63. Meanwhile, the stock is trading for just $9.58. If the bull market in Indian stocks continues throughout 2021, as I expect it to, Fairfax’s value could double by next Christmas. 

Looking for more cheap stocks? Here's a list.

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Fool contributor Vishesh Raisinghani owns shares of WELL and FAIRFAX INDIA HOLDINGS CORPORATION USD. The Motley Fool owns shares of FAIRFAX INDIA HOLDINGS CORPORATION USD. The Motley Fool recommends Goodfood Market.

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