WELL Health Technologies (TSX:WELL), Kinross Gold (TSX:K)(NYSE:KGC), and Corus Entertainment (TSX:CJR.B) are three top Canadian stocks currently trading under $10 to buy now. Here’s why those three stocks are good buys.
WELL Health has thrived in the face of the COVID-19 pandemic, as its telehealth services have seen an increase in usage. It’s a trend that investors can count on for the long haul.
In 2020, the company reported sales of $50.2 million, which was an increase of 53% compared to revenue of $32.8 million in 2019. Comparatively, its cost of sales rose by 33% to $29 million, allowing the company to almost double its gross profits to $21.2 million. Its adjusted gross margin rose from 33.5% in 2019 to 42.2% in 2020 and to 46.6% in Q4 of 2020.
Last week, WELL Health completed the acquisition of CRH Medical Corporation, a company that provides anesthesia services to the GI (gastroenterologist) community. The transaction, valued at US$372.9 million, improves the free cash flow profile of the omnichannel digital health company and its operations in the United States.
WELL Health recently expanded its presence in Ontario by acquiring Ottawa-based healthcare provider ExecHealth.
Kinross is engaged in the exploration and acquisition of gold properties. Likewise, it does not depend on gold. It also has an interest in silver. Kinross is well positioned to generate significant shareholder value given today’s high gold prices.
Unlike other mining companies, it enjoys global exposure, with mines spread across North America, Africa, and Russia.
In its fourth-quarter 2020 results, Kinross said it generated record free cash flow of US$1 billion in 2020 and ended the year with total liquidity of US$2.8 billion, including cash and cash equivalents of US$1.2 billion. Total debt at the start of the year was US$1.9 billion, so the company is healthy.
The Tasiast mine is finally realizing its potential, delivering record production and low costs for the second year in a row. Across the asset portfolio, Kinross expects 20% production growth in 2023. All-in sustaining costs for 2020 is less than US$1,000 per ounce.
Shares of this gold stock have a very favourable P/E ratio of 6.8. It also offers a quarterly dividend of $0.03 per share. This represents a modest yield of 0.7%.
The available cash flow and a strong balance sheet give Kinross the flexibility to make new acquisitions to drive further growth.
Corus Entertainment’s core business is the television industry. The company makes most of its money from advertising, subscription services, and the sale of the content it creates.
Corus has recovered strongly from the impact of the pandemic. The mass media stock is up about 40% year to date. Corus also pays a dividend that has a respectable yield of 4%.
The company had strong operational momentum in Q2 2021. TV advertising revenue is rebounding, while paid streaming subscribers posted solid gains. In addition, the company’s content licensing business saw double-digit growth.
Corus is significantly undervalued, which is why it is one of the top Canadian stocks to buy right now. The stock is trading at a forward P/E of just 6.7.
Corus Entertainment has announced that it has signed an agreement with streaming service Hulu. This distribution agreement allows the Corus Studios division to sell more than 200 episodes in different genres.
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 Stephanie Bedard-Chateauneuf owns shares of KINROSS GOLD CORP.