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3 Canadian Stocks to Buy Under $10 for Superior Returns

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So you want to invest but don’t have a lot of cash on hand. It’s a situation many Canadians find themselves in, but especially young people. Millennials in particular are strapped for cash, with the housing market soaring, debt climbing, and all while trying to start a life, a career and even a family in many cases.

It has many investors believing that investing just won’t be for them. Not true! Even putting a little aside each paycheque can help you reach your investment goals. It’s true! And it doesn’t have to be risky either. If you have a really strapped budget, even just $10 can get you there. Just start with stocks like these.

CloudMD

The telehealth industry exploded with the pandemic, and any company in this industry exploded along with it. CloudMD Software & Services Ltd. (TSXV:DOC) in particular saw massive growth as it acquired company after company. The stock is up 295% in the last year, but still has a valuable price-to-book ratio (P/B) of 5. After reaching $3.25 per share, the company has shrunk back in the tech sell-off, providing a great jumping in opportunity.

The company has a solid growth path from these acquisitions, with revenue soaring from this strategy. Meanwhile, it’s very unlikely the world will simply revert back to regular methods of seeing healthcare providers in person. This is a safer, cheaper, more convenient way for everyone. I therefore strongly believe CloudMD and others will continue to see strong growth. And at $1.75 per share, a $1,000 investment could easily turn into $1,857 when shares reach all-time highs.

Kinross Gold

The gold industry is changing. Gold stocks soared during the market crash, but there was a sell-off as other areas of the economy proved attractive. But these mines are finding a new way of diversifying and creating revenue, and that’s through mergers and acquisitions. Kinross Gold Corp. (TSX:K)(NYSE:KGC) is one of these diversified companies, with several mines spread throughout the world, from the United States to Africa, Brazil to Ghana. And management expects further growth of 20% in the next three years.

While this alone should have investors interested, its the fundamentals that make many look again. The company has a P/B ratio of 1.2 and a price-to-sales (P/S) ratio of 2, making it an incredible value play. But shares are down about 35% from its peak last year, so it also has a strong jumping in point for today’s investor. And all for a cheap share price of $8.20 as of writing, with a 1.76% dividend yield.

Cenovus Energy

The energy sector is in rebound, yet shares of Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) still remain below $10 per share at about $9.50 as of writing. There is so much opportunity for investors who buy today, since the company is now the third-largest producer of oil and gas in the country thanks to its Husky Energy acquisition.

The acquisition has already created $1 billion in synergies for Cenovus, and more growth is expected. That comes from its solvent-aided process to where the company can refine oil at the site. This should drive meaningful revenue growth and value for long-term investors. But right now, the balance sheet is where the company is putting its focus. So while there’s a recovery, Cenovus stock should see some meaningful chipping away at its debt.

Shares are up 306% as of writing in the last year, but the company is still cheap with a 1.5 P/S ratio and 0.7 P/B ratio. And it’s still a ways off to reach pre-pandemic levels. So it’s a great time for investors to jump on this stock.

Want even more options for HIGH GROWTH stocks? Check out this FREE list of five!

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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 Amy Legate-Wolfe has no position in any of the stocks mentioned.

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