2 Canadian Stocks Under $100 to Buy Right Now

The stock market is on fire, but you don’t need to pay top prices to invest. Add these two companies to your watch list today.

| More on:
Two colleagues working on new global financial strategy plan using tablet and laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The Canadian stock market keeps rising this year, as it’s now at a 10% gain since the beginning of 2021. The country might not yet be fully reopened, but investors are showing their bullish enthusiasm for a strong economic recovery this year. 

What’s been interesting about this year’s bull run is that it’s been partially fueled by a returned interest in value stocks. High-priced growth stocks led the way last year, but many of those companies have cooled off as of late. With many of those growth stocks reaching frothy valuations, investors began searching for undervalued picks to add to their portfolios.

Whether you’re looking to ride the wave of value stocks or are in search of a discounted growth stock, I’ve got you covered. 

I’ve reviewed two stock picks that you’ll want to add to your watch list right now. They are both completely different types of businesses, so there’s absolutely no harm at all in adding both to your portfolio today. Best of all, both stocks are trading below $100.

Investing in high-growth tech stocks

One of my top picks on the TSX right now is also one of the most expensive stocks around. You won’t find many companies trading above Lightspeed’s (TSX:LSPD)(NYSE:LSPD) price-to-sales ratio of 65. 

Value investors won’t put their money anywhere near Lightspeed, but I think the long-term potential reward is well worth the risk. 

The Montreal-headquartered company has only been trading publicly for two years but has done a lot to impress investors during that time. Shares are up more than 350% since March 2019, but I firmly believe that this growth story is just getting started. 

It’s far more than just the 350% growth that’s impressed me with this tech stock. Lightspeed has proven to investors in its two years trading on the TSX that it’s got its sights on taking on the tech giants of the world. 

The stock has continued to grow its revenue at a torrid rate due to its product innovation and global expansion. Lightspeed is no longer just a point-of-sale hardware provider. Today, it offers its global customers all kinds of e-commerce solutions. 

The Canadian banks are soaring

Bank stocks had a rough go in 2020. The unanticipated drop in interest rates led to the Big Five all trailing the market’s returns last year. 

Fast forward to 2021, and it’s been a completely different narrative for the banks. The rotation out of tech companies and into value stocks has sent the banks soaring to all-time highs.

If you’re looking for a steady long-term investment that can also be an income driver, you can’t go wrong with adding any of the major banks to your portfolio. They all own respectable dividend yields today, and earning market-beating growth over the long term is certainly not out of the question. 

The reason I’ve got Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) on my watch list is for its exposure to non-Canadian economies. It’s common to see a strong presence in North America within Canada’s top banks, but its Bank of Nova Scotia’s presence in Latin America that separates it from its peers. 

Shares of the $90 billion bank are up close to 15% on the year. But even with the recent surge in price, the stock is still reasonably priced. The bank is trading today at a forward price-to-earnings ratio of just 10. 

You may be hesitant to add a bank stock to your portfolio today while it’s trading at an all-time high, but Bank of Nova Scotia will do a lot more than just drive growth for your portfolio.

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 Nicholas Dobroruka owns shares of Lightspeed POS Inc. The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends BANK OF NOVA SCOTIA.

More on Tech Stocks

A stock price graph showing growth over time
Tech Stocks

3 Cheap Growth Stocks to Buy Right Now

Given their growth prospects and cheaper valuations, these three TSX stocks could deliver superior returns in the long run.

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

3 Stocks I’m Buying During a Tech Stock Correction

Tech stocks like Constellation Software (TSX:CSU) should be on your radar.

Read more »

financial freedom sign
Tech Stocks

$5,000 Invested in These 3 Stocks Could Make You Rich Over the Next 20 Years

Are you looking for stocks that could carry your portfolio over the next 20 years? Here are three top picks!

Read more »

potted green plant grows up in arrow shape
Tech Stocks

This Growth Stock Rallied 20% Yesterday, But it’s Still Cheap!

This growth stock is a great value. The 20% rally indicates the company has executed well and has potential for…

Read more »

Target. Stand out from the crowd
Tech Stocks

Down 70%, This Could Be the Best Stock-Split Stock in Canada to Buy and Hold Forever

This is arguably be the best stock-split stock to buy right now, as it has the potential to multiply your…

Read more »

Growth from coins
Dividend Stocks

What’s More Effective: 1 Growth Stock or 1 Dividend Stock for High Returns?

Let's settle the age old debate. If you had invested in a huge growth stock or a solid dividend stock,…

Read more »

Money growing in soil , Business success concept.
Tech Stocks

Forget BlackBerry Stock: Buy This Growth Stock Instead

BlackBerry (TSX:BB)(NYSE:BB) stock is up over 30% in the last two months, but is it all due to meme stock…

Read more »

Plant growing through of trunk of tree stump
Tech Stocks

Buy the Dip: 2 Top Growth Stocks That Could Turn $5,000 Into $25,000

Investors can consider buying growth stocks such as Shopify that are trading at a discount to their historical valuation.

Read more »