The 3 Best Canadian Stocks Under $30 to Buy Right Now

Looking for shares that are trading for less than $30? Consider buying these high-growth stocks.

| More on:
A close up image of Canadian $20 Dollar bills

Image source: Getty Images

Looking for shares that are trading for less than $30? Consider buying the shares of Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN)Absolute Software (TSX:ABST)(NASDAQ:ABST), and Real Matters (TSX:REAL). These companies have delivered significant returns in the past, have good growth prospects, and are likely to deliver strong returns in the long term. 

Algonquin Power & Utilities

Algonquin Power & Utilities has consistently delivered incredible returns. Its stock has appreciated by about 135% in five years. Algonquin Power & Utilities has boosted its investors’ returns through higher dividends. It has hiked its dividends at a compound annual growth rate (CAGR) of 10% in the past 10 years. 

The company’s strong returns are backed by its high-quality earnings base. Algonquin Power & Utilities’s consistent rate base growth and accretive acquisitions led to double-digit growth in its adjusted EPS over the past several years and drove its stock higher. 

Algonquin Power & Utilities is expected to benefit from rate base growth over the coming years. It projects its rate base to increase at a CAGR of about 11% over the next five years, which is likely to drive its adjusted EBITDA and earnings. Furthermore, most of the company’s power output is contracted, implying that Algonquin Power & Utilities will continue to generate steady cash flows. Its low-risk and high-growth business mix and predictable cash flows provide a strong underpinning for growth. 

Real Matters

Real Matters bounced back sharply from its March lows and delivered exceptional returns. Lower interest rates led to a surge in refinancing volumes that drove its revenues and earnings and, in turn, its stock. 

However, deceleration in growth led to a sharp selloff in Real Matters stock. Real Matters stock plunged about 42% in the last six months. I believe the strong pullback in Real Matters stock, despite the positive secular tailwinds is an excellent opportunity to buy its stock. I expect the interest rate could stay low in 2021, providing a strong base for growth. 

Real Matters expects the surge in refinancing activity to sustain, driving its revenues and earnings. Meanwhile, new customer gains, a large addressable market, and a strong blue-chip client base are likely to accelerate its growth and support the uptrend in its stock. 

Absolute Software 

Absolute Software stock has surged over 174% in three years. Moreover, a large addressable market and increased spending on cybersecurity threats provide a solid base for future growth. Absolute Software’s recurring revenue base is growing at a decent pace. Meanwhile, its customer base remains very strong with a high retention rate. 

The company has about 13,000 customers, including leading banks and fortune 500 companies. Further, its strong financial position and debt-free balance sheet are likely to support its growth. 

The company’s focus on developing regions, up-selling opportunities, and demand for computing devices’ security and management are likely to support its revenues and EBITDA. Meanwhile, continued momentum in the enterprise & government verticals should further support its growth. 

The technology company also pays a quarterly dividend of $0.08 a share, reflecting a decent yield of 1.9%. Further, it is trading at a lower valuation multiple compared to its peers.

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Real Matters Inc.

More on Tech Stocks