Investing in equity markets does not always require huge capital upfront. Even with a small but regular investment, one can create significant wealth over the long term. So if you are ready to invest, here are three Canadian stocks that you can buy under $10 to earn superior returns over the next three years.
B2Gold (TSX:BTO)(NYSEMKT:BTG) is a gold mining company with its mines located in Mali, Namibia, and the Philippines. The company had reported a solid first-quarter performance last week, with its adjusted EPS of $0.09, beating analysts’ expectations of $0.07. Meanwhile, its revenue of $362.3 million fell marginally short of analysts’ expectations.
Year over year, B2Gold’s revenue fell 4.7%. The decline in gold ounces sold during the quarter dragged the company’s top-line down. However, higher average realized gold prices offset some of the declines. Amid the planned waste stripping and lower mined ore grades, the company’s production declined during the quarter.
However, the company’s management expects its production to improve in the second half of this year, as the mining reaches the higher-grade zones. For this year, the company’s management expects its gold production to come in the range of 970,000 – 1,030,000 ounces. Over the last 30 days, gold prices have increased by 5.8%. Meanwhile, the uptrend could continue given the volatility in the broader equity markets, thereby benefiting gold-mining companies.
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Amid the weakness in the cannabis sector, Aurora Cannabis (TSX:ACB)(NYSE:ACB) has lost close to 60% of its stock value from its February highs. The steep correction offers an excellent buying opportunity, given the expanding cannabis market amid increased legalization and the company’s growth initiatives.
Aurora Cannabis has captured a significant market share in the Canadian and international medical cannabis markets. Currently, it earns revenue from over 13 countries. The company focuses on increasing its market share and also expand its footprint into newer markets. Management also hopes that some of these medical channels would migrate to consumer channels in the coming years.
Its CBD brand, Reliva, has received a positive response from U.S. customers. The company is working on expanding the availability of the product across the United States. With its cash and cash equivalents standing at $565 million, Aurora Cannabis is well positioned to fund its growth initiatives.
WELL Health Technologies
Yesterday, WELL Health Technologies (TSX:WELL) had reported an impressive first-quarter performance, with its top-line increasing by 150% to $25.6 million. Its acquisitions over the last four quarters and organic growth in its various business units drove its revenue. It also posted positive adjusted EBITDA for the second quarter in a row, with its Canadian operations posting strong performance during the quarter.
Meanwhile, WELL Health acquired ExecHealth, IntraHealth and CRH Medical in the second quarter. With these acquisitions, the company’s annualized revenue run-rate is approaching $300 million per year. It also strengthened its billing and back-office segment by acquiring a 51% stake in Doctors Services Group. Further, the company has launched Health Records on iPhone, which would allow iPhone users to retrieve health records from participating clinics. So, the company’s growth prospects look healthy.
Meanwhile, amid the recent sell-off in tech stocks, WELL Health is trading at a 26.5% discount from its February highs. I believe investors should utilize the correction to accumulate the stock to earn superior returns.
For similar wealth-creating ideas, check out the following report.
There’s a dark horse Canadian company that has produced 3 TIMES the number of vehicles as Tesla, yet its stock trades for roughly 25x LESS!
We’re convinced this under-the-radar Canadian disruptor that’s less than 5% the size of Tesla could be one of the best growth stocks of 2021 and beyond.
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 Rajiv Nanjapla has no position in any of the stocks mentioned.