3 Top Canadian Stocks Trading Below $5 That You Can Buy Right Now

Growth investors looking for lower-priced stocks can buy shares of HEXO and HIVE right now.

| More on:
Hand writing Time for Action concept with red marker on transparent wipe board.

Image source: Getty Images

Lower-priced stocks remain attractive to investors, as they help in diversifying the portfolio. For example, if you have $3,000 in your account, you may not be able to purchase even two shares of Canadian tech giant Shopify. However, you can look to buy multiple stocks with a lower share price that operate across sectors with that amount.

We’ll consider three Canadian stocks below $5 that should be on your radar right now.


The first stock on my list is Canadian cannabis heavyweight HEXO (TSX:HEXO)(NYSE:HEXO). Shares of HEXO have grossly underperformed the markets since the start of 2019. It’s, in fact, trading 93% below its record highs and has slumped 37% year to date as well. HEXO stock is currently priced at $2.32 after it fell around 25% last Friday.

Investors were worried about the company’s intention to raise additional equity capital, which, in turn, will dilute existing shareholder wealth. HEXO and its peers have consistently raised capital in the past few years to offset massive losses and cash burn.

However, HEXO remains part of a rapidly expanding addressable market and will benefit from economies of scale, allowing it to improve profit margins going forward. The company has focused on inorganic growth this year and is looking to close big-ticket acquisitions, such as Redecan, later this year. The pullback in HEXO stock allows investors an opportunity to buy the dip.

Drone Delivery Canada

Valued at a market cap of less than $300 million, Drone Delivery Canada (TSXV:FLT) has already returned 556% to shareholders in the last five years. However, it’s also down 46% from all-time highs and trading at $1.28. The company designs and implements drone-based logistics systems for commercial enterprises. It offers logistics solutions and serves companies across retail, e-commerce, mining, oil and gas, and several other sectors.

Drone Delivery Canada has managed to build a robust platform over the years, making its products ready for operation. The company has collaborated with multiple pilot partners and continues to focus on opportunities to expand its business.

It generated sales of $265,000 in 2020, while revenue is forecast to touch $3.73 million in 2021 and $21.4 million in 2022, making Drone Delivery Canada one of the fastest-growing companies.

HIVE Blockchain Technologies

The final company on my list is crypto-mining company HIVE Blockchain Technologies (TSXV:HIVE). If you are bullish on the long-term prospects of cryptocurrencies, it makes sense to add HIVE Blockchain to your portfolio. The price of HIVE is tied to Bitcoin, which means it is highly volatile.

For example, shares of HIVE rose from $0.10 in October 2016 to $4.71 in November 2017. It then fell to $0.11 in January 2020 before touching a record high of $7.25 earlier this year. HIVE stock is currently priced at $3.89.

The widespread adoption of Bitcoin and other digital currencies drove prices to all-time highs in May 2021. However environmental concerns coupled with China’s crackdown on crypto players have led the selloff in the last few months.

Investing in HIVE will provide you exposure to the cryptocurrency segment that has already created several multi-millionaires in the past decade.

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 Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends HEXO Corp. and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

More on Tech Stocks

online shopping
Tech Stocks

Is Shopify Stock a Buy in March?

Shopify stock has had a volatile run, but fundamentals are strong, and valuations are much lower after its 71% decline.

Read more »

data analyze research
Tech Stocks

2 Top Stocks to Buy in March 2023

Given their solid financials and high-growth prospects, these two stocks are excellent buys right now.

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

Is Kinaxis Stock a Buy at 52-Week Highs?

Kinaxis stock is up 31% in the last six months, though 5% in the last year. So as the stock…

Read more »

healthcare pharma
Tech Stocks

Should You Buy WELL Health Stock After Q4 Earnings?

Given its solid financials, healthy growth prospects, and attractive valuation, I am bullish on WELL Health.

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

2 Tech Stocks That Could Set You Up for Life

Canadian investors can set themselves up for the future with top tech stocks like Descartes Systems Group Inc. (TSX:DSG).

Read more »

dividends grow over time
Tech Stocks

Got $1,000? Buy These Hot Growth Stocks Before They Take Off

Investors won’t want to miss these buying opportunities. Here are three discounted growth stocks to load up on today.

Read more »

Woman has an idea
Tech Stocks

2 No-Brainer Stocks to Buy With $500 Right Now

Given their solid financials, healthy growth prospects, and attractive valuation, I am bullish on these two TSX stocks.

Read more »

Business success with growing, rising charts and businessman in background
Tech Stocks

A Bull Market Is Coming: 1 Growth Stock Down 33% to Buy and Hold Forever

Here's why quality growth stocks such as Aritzia are compelling long-term bets for TSX investors.

Read more »