3 TSX Stocks Under $10 to Buy Right Now

The market may be red hot, but Canadians can still snatch up TSX stocks like Extendicare Inc. (TSX:EXE) that hold promise.

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published August 4, 2021 12:00 pm EDT

The S&P/TSX Composite Index rose 78 points on August 3. The energy, information technology, and telecom sectors led the way. Meanwhile, health care was the one sector on the Canadian market to suffer a broad retreat. This is somewhat surprising, especially in the face of the rising Delta variant. Today, I want to look at three TSX stocks under $10 that are well worth your attention in early August. Let’s dive in.

Why I’m buying the dip in this new TSX stock

Yesterday, I’d discussed the remarkable success of WELL Health as telehealth erupted during the COVID-19 pandemic. Dialogue Health (TSX: CARE) is another TSX stock with exposure to this burgeoning space. However, its shares have slipped over 30% since its initial public offering (IPO) in late March. Investors on the hunt for discounts should seriously consider this TSX stock right now.

In Q1 2021, Dialogue Health saw revenue more than quadruple to $15.2 million. Meanwhile, members grew nearly 36% from the prior year to 1.3 million. The company bolstered its telehealth offering in the first quarter. It now allows members to schedule a consultation regarding physical and mental health, as well as financial support in a matter of minutes.

This TSX stock was valued at $9.88 at the time of this writing. It had an RSI of 34, putting it just outside of technically oversold territory. Investors should jump on this promising healthcare stock today.

Here is another healthcare stock that gained momentum during the pandemic

Last year, I’d discussed why VieMed Healthcare (TSX: VMD)(NASDAQ: VMD) was one of my favourite TSX stocks to own in the face of the COVID-19 pandemic. The company provides in-home durable medical equipment to its client base. It specializes in respiratory illnesses, which made public and private entities seek out its aid during the crisis.

Shares of VieMed have dropped 15% in 2021 as of close on August 3. The TSX stock has plunged 42% in the year-over-year period. In the first quarter of 2021, the company delivered net revenue growth of 12% to $25.5 million. VieMed’s COVID-related business has slowed, as vaccination rates have surged in late 2020 and early 2021. However, this company is still geared up for strong growth going forward.

This TSX stock closed at $8.50 per share on August 3. It possesses an attractive price-to-earnings (P/E) ratio of 9.5.

This TSX stock also offers stellar income

Extendicare (TSX: EXE) is a Hamilton-based company that provides care and services for seniors in Canada. This TSX stock has increased 27% in 2021. Its shares have climbed 46% year over year. The company is set to unveil its second-quarter 2021 results this month.

In Q1 2021, the company delivered revenue growth of 18.6% to $322 million. This was driven by COVID-19 funding of $55.4 million. Meanwhile, adjusted EBITDA rose $7.6 million from the prior year to $27.7 million.

Shares of this TSX stock last closed at $8.24 per share. It possesses a favourable P/E ratio of 13. Better yet, it offers a monthly dividend of $0.04 per share. That represents a strong 5.8% yield.