5 Top Under-$50 TSX Stocks to Buy Now With $1,000

Investors shouldn’t worry much, as temporary fluctuations in the market aren’t likely to impact the long-term prospects of fundamentally strong stocks.

| More on:
Various Canadian dollars in gray pants pocket

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

Despite the near-term uncertainty, investors shouldn’t worry much, as temporary fluctuations in the stock market aren’t likely to impact the long-term prospects of fundamentally strong stocks. So, if you are planning to invest in stocks, consider buying these five under-$50 stocks now that have the potential to deliver outsized returns in the medium to long term. 

Air Canada

The consistent increase in COVID-19 infections continues to play spoilsport for Air Canada (TSX:AC) stock in the short term. However, the long-term prospects of Air Canada remain solid. I believe the availability of the vaccine and easing of travel restrictions could significantly boost Air Canada’s financials and, in turn, its stock towards the end of 2021.  

I expect to see a solid improvement in its capacity and revenues in the coming quarters. Meanwhile, its losses are likely to shrink. The recovery in air travel demand, its lower-cost base, and momentum in the air cargo business strengthens my bullish view on Air Canada stock. Its stock is still available at a significant discount compared to the pre-pandemic levels and looks attractive at current levels.

Suncor Energy

While Suncor Energy (TSX:SU)(NYSE:SU) has recovered some of its lost ground, it continues to trade significantly lower compared to the pre-pandemic levels. I believe long-term investors shouldn’t miss Suncor stock at current levels. The recovery in volumes and pricing and economic expansion are likely to boost its financials and help the company deliver exceptional returns in 2021 and beyond. 

I expect the oil prices to trend higher in 2021. Meanwhile, production volumes are expected to increase. Meanwhile, Suncor’s integrated assets and lower cost base position it well to deliver strong revenues and margins in the coming quarters. Further, the company is likely to boost investors’ returns through regular dividend payments and share repurchases. 

Goodfood Market

Goodfood Market (TSX:FOOD) has consistently performed well and has delivered solid returns in the past. Notably, Goodfood Market stock is up over 232% in three years, reflecting strong adoption of online grocery services. Meanwhile, I expect the uptrend in its stock to continue, thanks to its market-leading position and the favourable industry tailwinds.

Goodfood Market’s active subscriber base is growing at a solid pace. Meanwhile, its robust delivery capabilities, expansion on product selection, and targeted marketing are expected to drive its active customer base, order frequency, and basket size. Meanwhile, cross-selling opportunities and reduction in delivery time bode well for future growth.

Couche-Tard

Alimentation Couche-Tard (TSX:ATD.B) is a top low-risk, high-growth stock to own under $50. The convenience store operator’s appetite to grow inorganically and continued momentum in its base business suggest that the company could continue to grow its revenues and margins at a solid pace, giving a significant boost to its stock. 

Its strategic acquisitions, growing global footprint, private label offerings, and store optimization program are likely to drive its top and bottom line at a breakneck pace over the coming years. 

Well Health

WELL Health Technologies (TSX:WELL) is another high-growth stock trading under $50. I expect the company to outperform the benchmark index by a significant margin in 2021 and beyond on the back of its stellar financial performance aided by its bolt-on acquisitions. 

The company’s services revenue is growing at a stellar rate, which should support its gross profits. Meanwhile, its expansion in the high-growth U.S. markets augurs well for future growth. I believe the favourable industry trends, solid acquisition pipeline, and its growing footprint could continue to drive its revenues and gross margins and, in turn, its stock. 

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 owns shares of and recommends ALIMENTATION COUCHE-TARD INC. The Motley Fool recommends Goodfood Market.

More on Dividend Stocks

Dividend Stocks

Passive Income: 3 Top Canadian Stocks to Buy for Monthly Dividends

Companies such as Pembina Pipeline and Killam Apartment REIT pay investors monthly dividends, making them top bets for income-seeking investors.

Read more »

Dots over the earth connecting the world
Dividend Stocks

3 of the Top-Growing Stocks on Earth

Market volatility remains high in Q3 2022, but it’s easy to identify the top-growing stocks on Earth.

Read more »

Profit dial turned up to maximum
Dividend Stocks

1 Undervalued Canadian Dividend Stock to Buy for TFSA Passive Income and Total Returns

This cheap Canadian energy stock provides an attractive dividend yield for TFSA passive income and a shot at some big…

Read more »

money cash dividends
Dividend Stocks

Want Passive Income? 1 TSX Stock for $8/Day in Dividends

If you need cash right away, then this TSX stock can make you passive income from a stable dividend that…

Read more »

edit Balloon shaped as a heart
Dividend Stocks

My 3 Favourite TSX Dividend Stocks Right Now

Canadian dividend stocks make for great long-term buy-and-hold investments.

Read more »

value for money
Dividend Stocks

3 Incredibly Cheap Dividend Stocks to Buy for Dependable Passive Income

Now is an excellent time to load up on Canadian dividend stocks. Here are top picks that are all trading…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

3 Simple TSX Stocks to Buy With $25 Right Now

Canadians with capital of as low as $25 can purchase three simple stocks right now and earn recurring passive income…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

2 No-Brainer U.S. Stocks for Investors in August

Here are two undervalued U.S. stocks to diversify your investment portfolio. They both pay safe and growing dividends!

Read more »