It can be very discouraging as a newer investor. You can read many articles listing the reasons why the likes of Shopify, Constellation Software, or Canadian Pacific Railway are excellent companies to hold in your portfolio. What many of those articles don’t mention is how expensive it is to enter positions in those companies. Two of those stocks trade above $1,000, making it difficult for newer investors to buy into. Fortunately, there are excellent companies on the TSX that trade below $10.
Online shopping with a twist
During the height of the pandemic in 2020, consumers needed to find new ways to shop. This was even true for groceries. Fortunately, companies like Goodfood Market (TSX:FOOD) exist. It is one of the largest providers of online groceries and meal kits in Canada. As of August 2019, the company estimated that it had already captured 40% of Canada’s meal kit market. Over the past year, the company has grown significantly; however, its stock still trades below $10.
As of its latest earnings report, this April, Goodfood had more than 319,000 active subscribers. This is up from 159,000 in 2019, showing the strong growth in Goodfood’s user base. As the company continues to scale, it has also been able to become more profitable, raising its gross margin from 21% to 30% over the past two years. This has resulted in an increase in the company’s cash on hand from $25 million to more than $163 million. With passionate founders leading the company, there is no doubt this stock will continue to grow in the coming years.
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The future of health care is here
In addition to finding new ways to shop, Canadians needed to be able to find convenient healthcare services during the pandemic. WELL Health Technologies (TSX:WELL) is a leader within the Canadian telehealth industry. With 27 primary clinics and over 200 doctors across the country, WELL Health is making health care more accessible to Canadians. More than 2,800 practitioners are also enabling more than 66,000 Canadians to obtain virtual care each month.
In 2020, WELL Health entered the massive American healthcare industry when it acquired Circle Medical. This was a major step in the right direction, as investors were skeptical about the company’s potential had it stayed restricted within the Canadian borders. A graduate of the TSX Venture Exchange, WELL Health stock beat the broader market by a wide margin in 2020, gaining more than 420%. As telehealth continues to grow in adoption, WELL Health will lead the way in Canada and the United States.
A stock you may not have heard of
One of the most impressive stocks over the past year isn’t one that’s covered very often. Corus Entertainment (TSX:CJR.B) is a mass media and entertainment conglomerate based in Toronto, Ontario. Formerly a subsidiary of Shaw Communications, this company has a presence within the radio, publishing, and television industries. Over the past year, Corus stock has quietly gained more than 100%. The stock also offers a very attractive dividend with a forward yield of 4.01%, making it appealing to growth and dividend investors alike.
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 Jed Lloren owns shares of Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Constellation Software, Shopify, and Shopify. The Motley Fool recommends Goodfood Market and recommends the following options: long January 2023 $1140 calls on Shopify and short January 2023 $1160 calls on Shopify.