2 Top Growth Stocks Under $10 to Buy Now

Buy StorageVault Canada (TSXV:SVI) and another under-$10 Canadian stock right now if you seek growth at a big discount this August 2021.

| More on:
Hand arranging wood block stacking as step stair with arrow up.

Image source: Getty Images

There are many great growth stocks under $10 that young Canadian investors should reach for if they’re looking for above-average gains over the next 10 years and beyond. While it’s nice to prefer stocks with lower prices, it’s vital to remember that it’s the market cap, not the stock price, that dictates how young a company is and how much potential it holds.

High-growth stocks for under $10 per share? They’re rare, but they do exist!

Undoubtedly, smaller companies can come with a higher magnitude of risk. In this piece, we’ll look at two stocks that I believe have incredible growth runways with far less risk than most other small-cap stocks out there.

StorageVault Canada: $4.85 per share

StorageVault Canada (TSXV:SVI) is a play on the Canadian self-storage market — a market that has more room for growth than in the states. The company took a mild hit to the chin last year, as COVID-19 pressures weighed on it. Shares of SVI pretty much fell in line with the market, shedding around 32% of its value from peak to trough before bouncing back in just a few months.

In prior pieces, I’ve highlighted how the COVID-induced, “move-to-the-suburbs” trend was working against StorageVault and other players in the self-storage space. As I mentioned, though, the trend was likely to reverse as things returned to normal and people were asked to go back into the office.

Undoubtedly, StorageVault is a great reopening play that won’t implode should the Delta variant trigger another round of lockdowns, work-from-home orders, and a continued move to the suburbs away from the inner cities.

I don’t think the move to the suburbs is sustainable in a post-pandemic environment. In fact, I think the suburbs have peaked, and the move back to the inner cities has just begun. As such, I’m continuing to pound the table on the $1.8 billion company and think it’s one of the better bargains on the TSX Venture Exchange these days.

Once a move back to the inner city takes hold, downsizing and densification trends will work in favour of the self-storage industry once again.

Fire & Flower Holdings: $0.93 per share

The Canadian cannabis retail scene is getting quite competitive. As further competitive pressures are applied, many small, independent pot shops could be at risk of closing. As a pot shop with a solid omnichannel presence, a strategic partnership with one of the largest convenience store giants out there, and a rock-solid balance sheet, I think Fire & Flower is a top candidate that’s going to stick around after the pot shop boom pulls back and the industry consolidates.

Cannabis is a commodity. It’s no longer enough to have a catchy pot shop name to enjoy economic profits. As the cannabis retail scene matures, it’s the firms that provide the greatest value to consumers that will thrive. That means the firms with the lowest prices and the most convenient locations (or best e-commerce platforms) will be the ones that will dominate at the expense of the firms that’ll end up crumbling at the hands of increased competition.

With shares trading at just 2.1 times sales, I think the $310 million company is a great buy for any small-cap portfolio. Most importantly, things are on the right track for the firm. As Fool Chris Liew pointed out, Fire & Flower has now posted four straight quarters in the green.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Is Newmont Mining Stock a Good Buy Right Now?

Shares of Newmont Mining are down almost 60% from all-time highs, making the gold stock a top choice for value…

Read more »

Growth from coins
Tech Stocks

2 Canadian Growth Stocks to Buy and 1 to Sell

The recent volatility in the stock market has created all kinds of opportunities for long-term investors.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, February 21

The Federal Open Market Committee’s meeting minutes and more corporate results are likely to keep TSX stocks volatile today.

Read more »

Retirement
Investing

Got $5,000? Buy and Hold These 3 Value Stocks for Years

Given their solid underlying businesses, healthy growth prospects, and attractive valuation, I am bullish on these three value stocks.

Read more »

money cash dividends
Stocks for Beginners

Got $1,000 to Invest in Stocks? Put It in This Index Fund

This low-cost beginner-friendly ETF is a great way to invest $1,000.

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

3 Cheap Tech Stocks to Buy Right Now

Given their long-term growth prospects and discounted stock prices, I am bullish on these tech stocks.

Read more »

money cash dividends
Dividend Stocks

Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

Want some absurdly cheap stocks for your portfolio? Here are two options trading at a huge discount right now.

Read more »

Gas pipelines
Dividend Stocks

TFSA Passive Income: Is Enbridge Stock a Buy, Sell, or Hold?

Enbridge now offers a yield near 8%. Is the dividend safe?

Read more »