4 Cheap (Under-$20), High-Growth Canadian Stocks to Buy Today

There are plenty of stocks listed on the TSX Index that are trading cheap and have solid fundamentals to back their growth.

| More on:
Growing plant shoots on coins

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

Buying stocks solely based on their lower price could prove to be an expensive mistake. However, plenty of stocks listed on the TSX Index are trading cheap and have solid fundamentals to back their growth. We’ll focus on four Canadian stocks that are trading at a lower dollar value (under $20) and have solid, long-term growth potential.

WELL Health  

Speaking of cheap stocks offering high growth, shares of WELL Health Technologies (TSX:WELL) crop up in my mind first. Notably, its stock went through the roof and jumped over 150% in one year. Further, it’s up about 1,187% in three years, thanks to its exceptional financial performance over the past several quarters. The company reported a 150% growth in its top line during the most recent quarter, reflecting a 345% growth in its software and services revenues. Furthermore, it continued to report positive adjusted EBITDA, which is encouraging. 

I believe WELL Health could continue to deliver robust financial and operating performance that could drive its stock higher. The company’s growing market share, strong acquisition pipeline, digitization of clinical assets, and cost-control initiatives bode well for future growth. Meanwhile, its stock corrected nearly 26% in three months, providing an excellent buying opportunity.

Kinross Gold

I have said it before that I am bullish on Kinross Gold’s (TSX:K)(NYSE:KGC) long-term prospects. Further, the stock looks appealing, as inflation is back in the news. Also, its solid fundamentals, margin expansion, and low valuation support my bullish view. Kinross Gold delivered a 12% year-over-year growth in the top line during the most recent quarter. Meanwhile, its adjusted earnings jumped 51%.

I believe the company’s higher production volumes and lower costs position it well to deliver strong profits and cash flows in the coming years. Also, its strong balance sheet and higher exposure to gold augur well for future growth. Meanwhile, Kinross Gold’s EV/EBITDA multiple is significantly below peers, while it offers a decent dividend yield of about 1.5%. 


Cineplex (TSX:CGX) continues to deal with many challenges, including lower demand, reduced operations, and higher net cash burn. However, I see these challenges as transitory and expect the company to deliver solid returns in the long run. 

I believe the ongoing vaccination could help recover demand and give a major boost to its financials. Its net cash burn could decline, while capacity is likely to show gradual improvement. Furthermore, I expect to see significant growth in its stock once its operations return to normalcy. Notably, Cineplex stock has witnessed a string of buying in the recent past. However, it is still trading at a massive discount from its pre-COVID levels and is an attractive long-term bet.

Algonquin Power & Utilities 

Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is another solid long-term bet to generate steady returns amid volatility and inflation concerns. The power producer has consistently delivered higher returns in the past and uninterruptedly increased its dividends at a CAGR of 10% in 11 years. 

Thanks to the double-digit growth in its rate base, Algonquin Power & Utilities expects its adjusted EBITDA and earnings to grow at a decent pace over the next five years, providing a solid foundation for future dividend growth. I believe its low-risk business, solid balance sheet, rate base growth, long-term contracts, and opportunities in renewable power business position it well to deliver double-digit total shareholder returns.  

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 recommends CINEPLEX INC.

More on Dividend Stocks

Canadian energy stocks are rising with oil prices
Dividend Stocks

Is Suncor Stock a Buy Right Now?

Suncor has delivered outsized gains to investors in 2022 and might continue to do so for the rest of the…

Read more »

Canadian stocks are rising
Dividend Stocks

3 Ways to Invest in Canadian Real Estate Under $20

Real estate can be a great way to make passive income, but you certainly don't have to invest a lot…

Read more »

grow dividends
Dividend Stocks

TFSA Wealth: 2 Oversold Canadian Stocks for a Retirement Fund

These top TSX divided stocks look attractive today for TFSA investors.

Read more »

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

Create $1,487 in Passive Income From a Top TSX Dividend and Growth Stock

This top growth stock on the TSX today could bring in almost $1,500 in passive income and triple your investment…

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Renters Will Rise in Number vs. Homebuyers in 2022

The greater majority of Canadian renters doubts their ability to purchase a home in 2022 due to surging inflation and…

Read more »

Man holding magnifying glass over a document
Dividend Stocks

West Fraser Stock: A Sneaky Growth Stock No One Talks About

West Fraser (TSX:WFG)(NYSE:WFG) stock has been a sneaky growth stock when it comes to its dividend.

Read more »

Dividend Stocks

Inflation Investing: 2 Top TSX Dividend Stocks to Buy Now

TFSA income investors can get dividend yields of better than 6% to help offset the impacts of high inflation.

Read more »

Canadian Dollars
Dividend Stocks

Got $1,000? Invest it in Real Estate

If you've got an extra $1,000, you should check out cheap REITs like Allied Properties (TSX:AP.UN) for juicy income.

Read more »