3 Top Canadian Stocks Under $10 to Buy Right Now

Canadian small-cap stocks are cheap and they have tonnes of upside. Here are three stocks under $10 per share that look attractive now!

| More on:
analyze data

Image source: Getty Images

While the TSX Index has had a very strong run up in 2021, many Canadian small-cap stocks have been left behind. This is one segment that could be due for a rebound in the second half of the year.

You can find income, value, and growth in the small-cap space. Consequently, investors can swipe some fairly attractive stocks trading at or below $10 per share today.

Canadian small-cap stocks are volatile, so you have to think long-term and be patient for their investment thesis to come to fruit. If you don’t mind taking on some extra risk for larger returns, here are three top small-cap stocks that look intriguing right now.

Top Canadian Stocks Under $10 Now

A top real estate stock

Given concerns about inflation, real estate has traditionally been a good asset class to own. European Residential REIT (TSX:ERE.UN) is really well positioned right now. It gets the benefits of very low European interest rates (sub 1%) but has the potential for solid rental rate growth due to inflation.

The REIT owns and manages 6,184 multi-family rental suites across the Netherlands. This is an attractive jurisdiction because of its strong rule of law, low rental vacancy rates, low rental supply, and high, consistent demand. Despite even the pandemic, this real estate investment trust enjoyed +98% occupancy and strong collections.

This Canadian stock is cheap. It only trades for $4.60 per share, which is below its net asset value. Despite a very solid growth profile, it is among the cheapest apartment REITs in North America and Europe. It also pays an attractive 3.5% dividend!

A top Canadian ESG stock

If you believe ESG will continue to be an important trend, then you may be interested in H2O Innovation (TSXV:HEO). It only has a market capitalization of $215 million and a share price of $2.65. However, this Canadian stock has some potential.

H2O supplies industrial grade water filtration technologies and solutions for municipalities, utilities, and businesses. Fresh water is one of the most scarce (and most important) resources on the planet. Just look up “California water shortage,” and you will recognize how important water management is across the world.

H2O supplies essential equipment and services that capture software-as-a-service-like recurring revenue (around 87% of revenues). This company has a great balance sheet and strong growth tailwinds (organically and through acquisitions).

It has a solid plan to essentially double its business over the next three years. Yet this stock only trades with a price-to-sales ratio of 1.5 times and an enterprise value-to-EBITDA ratio of 15 times. It looks pretty attractive today.

A top up-and-coming Canadian tech stock

Quisitive Technology Solutions (TSXV:QUIS) trades for only $1.39 per share. It has a market cap of $446 million. It provides solutions that help clients integrate into the Microsoft cloud ecosystem.

Alongside this, it also has its own growing IP portfolio of solutions for human resources, e-commerce, manufacturing, and community development. In particular, the company is commercializing a one-of-its-kind payments and data analytics platform that could significantly bolster sales in the back half of the year.

Many medium-sized corporations still need adopt and integrate the cloud into their operations. Consequently, Quisitive still has a large market to capture. The company grew revenues by over 160% last year. It did hit a net loss of $0.07 per share, but adjusted EBITDA increased 523% to $8.1 million.

This Canadian stock has a good balance sheet with around $9 million in net cash. It is in a good position to add further acquisitions and expand its solutions portfolio. This stock isn’t cheap today, but given the growth potential, it is interesting here on any share weakness.

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.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Robin Brown owns shares of European Residential REIT and Microsoft. The Motley Fool owns shares of and recommends Microsoft.

More on Investing

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

3 Canadian Dividend Stocks to Buy Hand Over Fist

These three Canadian dividend stocks each offer a unique opportunity, making them some of the best investments to buy at…

Read more »

Chalk outline of two arrows pointing in opposite directions
Top TSX Stocks

2 TSX Stocks That Can Deliver Massive Gains in a Recession

Restaurant Brands International (TSX:QSR)(NYSE:QSR) stock and another recession-resilient firm that can win big in 2023.

Read more »

Growing plant shoots on coins
Stocks for Beginners

For New (and Old) Investors: 3 Dividend-Paying ETFs With Lower-Risk Profiles

Three dividend-paying ETFs with lower-risk profiles are suitable for new and old investors alike.

Read more »

Hand holding smart phone with online shop concept on screen
Tech Stocks

Is Now the Time to Buy Shopify Stock?

Shopify stock (TSX:SHOP)(NYSE:SHOP) hasn't hit these lows in years. So is it a great time to buy the dip, or…

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

Retirement Wealth: 2 Oversold Canadian Stocks to Buy Now and Own for Decades

These industry-leading dividend stocks look cheap right now and have increased their distributions annually for decades.

Read more »

money cash dividends
Tech Stocks

Got $1,000? 3 Cheap Stocks to Buy Right Now

If you've got cash on the sidelines that you're looking to put to work, here are three cheap stocks that…

Read more »

Tired or stressed businessman sitting on the walkway in panic digital stock market financial background
Dividend Stocks

2 of the Safest TSX Stocks Right Now

The stock market is heading towards a crash. Investors are seeking the safety of dividends, and these two stocks provide…

Read more »

question marks written reminders tickets
Tech Stocks

Nvidia Stock Is Down 60%: Should You Buy?

Nvidia (NASDAQ:NVDA) stock has slipped over 60% as short-term headwinds hurt its revenue. But a long-term view of the stock…

Read more »