Investing in the stock market does not require huge capital upfront. One can create significant wealth by making small but regular investments over a long period. With Canadian equity markets showing strong resilience, here are the three Canadian stocks trading under $20 that can deliver superior returns this year.
Driven by the increased demand for telehealthcare services amid the pandemic and its aggressive acquisitions, WELL Health Technologies (TSX:WELL) had delivered impressive returns of over 415% last year. Meanwhile, the upward momentum in its stock price could continue, given the telehealthcare market’s growth prospects. Fortune Business Insights expects the global telehealth market to grow at an annualized rate of 20% to reach US$559.5 billion by 2027.
WELL Health’s acquisition of Circle Medical could be significant, as it provides access to the lucrative telehealthcare service in the United States. The company had also acquired ExcelleMD in the fourth quarter, which expanded its omnichannel services to Quebec.
Meanwhile, the company is also expanding its EMR business through acquisitions. As of December 31, the company serviced around 2,200 clinics and 10,700 physicians. Further, the company has created a marketplace for digital health applications, which host over 25 applications. So, the company’s growth prospects look promising. Meanwhile, given the recent correction in its stock price, the company currently trades at around 8% lower than its 52-week high, providing an excellent buying opportunity.
The low-interest-rate environment has created a long-standing growth potential for Real Matters (TSX:REAL), which services mortgage lenders and insurance companies. In its September-ending fiscal 2020, its net revenue grew by 58.8%, while its adjusted EPS increased by 143.5%.
Meanwhile, the company’s management has set a promising 2025 guidance. It expects its market share in both title and appraisal markets to expand significantly. Further, the management is also hoping to increase its adjusted EBITDA margin.
Meanwhile, amid lower-than-expected fourth-quarter performance, Real Matters has witnessed a significant pullback in its stock price. As of Tuesday, the company was trading 42.8% lower than its 52-week high, providing an excellent entry point for investors. The company’s valuation also looks attractive, with its forward price-to-sales and forward price-to-earnings multiples standing at 3.3 and 30.1, respectively.
My third pick would be BlackBerry (TSX:BB)(NYSE:BB), one of the top performers this year. The company has returned over 85% so far. The company’s announcements of selling 90 smartphone technology patents to Huawei and resolving its messaging patent litigation with Facebook have led to an increase in BlackBerry’s stock price.
Meanwhile, the company’s growth prospects also look healthy. It has collaborated with Amazon Web Services to develop and market an intelligent vehicle data platform, IVY. The platform could help address data access and management problems in the automotive industry, thus reducing the timeline for bringing in new in-vehicle applications and connected services, which can work across multiple vehicle brands and models.
Further, the electric vehicle market growth could boost BlackBerry’s financials. The company has already secured design wins with 19 electric vehicle OEMs (original equipment manufacturers), which have acquired a significant market share. BlackBerry has also strengthened its cybersecurity and endpoint management solutions through Spark Suite and Cyber Suite platforms. Given its high-growth prospects, I expect the upward momentum in the company’s stock price to continue.
Meanwhile, check out the following report for the top 10 stocks to buy this month.
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Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. David Gardner owns shares of Amazon and Facebook. Tom Gardner owns shares of Facebook. The Motley Fool owns shares of and recommends Amazon and Facebook. The Motley Fool recommends BlackBerry, BlackBerry, and Real Matters Inc and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.