The 3 Best Canadian Stocks to Buy Under $5

If you only have a little to invest, these are the best Canadian stocks around for a cheap share price of $5 or less during this pullback.

| More on:
analyze data

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

If you’re looking for the best Canadian stocks on the TSX right now, you don’t have to think of sky-high prices. While there are plenty of stocks available that trade at huge valuations, there are still cheap stocks that you can buy today and hold for years to see returns. Even if you only have $100 to spend, you can buy shares in these stocks under $5 and see massive returns in the years to come.

For the best performance, right now is a great time to dig into pullbacks. More specifically the cryptocurrency, cannabis and tech sector offer stocks that simply don’t deserve a share price under $5, but there it is. So take advantage while you still can!

The best Canadian stocks in tech

The tech sector experienced a major pullback with the pandemic coming to a close. That includes virtual healthcare stocks, which many worry will see a reduction in revenue after the pandemic ends. But that simply isn’t the case, especially for acquisition king CloudMD Software & Services (TSXV:DOC).

CloudMD stock continues to outperform in revenue growth through its growth by acquisition strategy. CloudMD stock and its most recent earnings report saw 138% growth in revenue year over year, announcing a record year for revenue. It’s also on track for even more record-setting growth in 2021. Even today, if you had bought shares in CloudMD a year ago, shares in CloudMD stock would be up 136%.

Yet since the pullback, you can pick up one of the best Canadian stocks for just $1.85 as of writing. That’s at a discount of 42% from all-time highs. Even just a small stake in this stock could yield significant growth for years to come as virtual healthcare continues to take over.

Calling all cannabis investors

Cannabis stocks are set for a rebound. Consumers in Canada want cannabis, and now they have the cash to spend on it. As companies continue to merge, investors need to those that will still be there when the dust settles. That should include cannabis retailer Fire & Flower Holdings (TSX:FAF), one of the best Canadian stocks around today.

Fire & Flower has one significant advantage with investor Alimentation Couche-Tard. Purchasers can find it at any Circle K location, and it continues to help the company with its expansion. The company should continue growing in the cannabis retail space, but it remains small for investors right now.

The company already produced record revenue growth last year and recently opened its first two retail locations. So investors hoping to lock-in a share price of just $1 today should jump on it while they can.

Canadian crypto

A lot of investors have been interested in cryptocurrency, but are uninterested in the price. That’s what makes blockchain companies so appealing. These companies store and sell cryptocurrency, so the companies depend on revenue rather than an arbitrary concept of cryptocurrency. As long as people are using cryptocurrency, companies like Bitfarms (TSXV:BITF) will remain one of the best Canadian stocks to buy.

The company’s stock offers data farms to mine and sell cryptocurrency. Shares in this stock are up a whopping 946% in the last year alone, yet also experienced a pullback while investors took earnings. Those shares are at a discount of 27% as of writing, providing a great time to jump in.

As cryptocurrency continues to grow, investors seeking a way to get in on crypto without buying big can still pick up shares for just $5.45 as of writing.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned.

More on Coronavirus

Business success with growing, rising charts and businessman in background
Coronavirus

1 Growth Stock Every Canadian Investor Should Consider Right Now

This growth stock saw shares pop 10% on June 20, as one analyst stated there is a significant opportunity to…

Read more »

Aircraft wing plane
Coronavirus

Bombardier Stock Merge: What it Means for Investors

Bombardier (TSX:BBD.B) stock went through a reverse stock split on June 13, turning 25 shares into one in one swift…

Read more »

Aircraft wing plane
Coronavirus

Air Canada (TSX:AC) Stock: Ready to Take Off?

While Air Canada is handling what it can control really well, there are many worsening macro headwinds that will likely…

Read more »

rail train
Coronavirus

Bull or Bear: Why Analysts Changed Their Tune on Aecon Stock

Analysts had been champing at the bit for the construction company, but the tides have turned.

Read more »

Biotech stocks
Coronavirus

Is Bellus Health Stock Still a Buy After 30% Earnings Jump?

The biotech continues to make progress on obtaining FDA approval for its chronic-cough therapy.

Read more »

grow dividends
Coronavirus

Goodfood Stock Likely to Double in 2022!

Goodfood (TSX:FOOD) stock has had a huge rise and fall in the last few years. But at $1.85 a share,…

Read more »

grow dividends
Coronavirus

Canfor Stock Pops 5% as Sales Climb 15% YOY

Canfor (TSX:CFP) stock remained positive about its future in the global lumber market after profits climb 15% year over year.

Read more »

edit Safety First illustration
Coronavirus

2 Crash-Proof TSX Stocks I’d Buy With $5,000

These two TSX stocks have proven they can handle this economic downturn and likely will continue to be safe far…

Read more »