The Motley Fool

4 Top Under-$10 Canadian Stocks to Buy Right Now

Dice engraved with the words buy and sell
Image source: Getty Images.

Investing in stock markets need not require huge capital upfront. Investors can create a significant fortune in the long term by making small but regular investments. Meanwhile, here are four top Canadian stocks that you can buy below $10 to earn robust returns.

WELL Health

After delivering impressive returns of over 3900% in the last five years, WELL Health Technologies (TSX:WELL) is under pressure this year, with its stock trading 3% lower. Meanwhile, I believe the correction provides an excellent buying opportunity, given the favourable market conditions and its strategic acquisitions. Amid the pandemic, the demand for virtual healthcare services had increased and could sustain, given their accessibility and convenience.

Meanwhile, WELL Health has acquired CRH Medical, Intrahealth Systems, ExecHealth, MyHealth, and a 51% stake in Doctors Services Group. These acquisitions have increased its revenue and EBITDA run-rate to $400 million and $100 million, respectively. Also, the company is working on acquiring a significant stake in WISP for around US$41 million, which could expand its footprint in the lucrative U.S healthcare market. Given its financial position, WELL Health is well equipped to continue with its growth initiatives.

Aurora Cannabis

Although the cannabis sector is witnessing high volatility, I have selected Aurora Cannabis (TSX:ACB)(NYSE:ACB) as my second pick due to the growing cannabis market, improving Aurora’s quarterly performance, and healthy growth prospects. Amid rising legalization and increased usage of cannabis for medical purposes, the cannabis market is expanding.

Although Aurora’s third-quarter performance was lower than expected, its medical sales increased in both domestic and international markets. Besides, its adjusted EBITDA losses had declined by over 50%. Meanwhile, the company is also working on improving its recreational sales and has launched several new products. Also, the company is focusing on improving efficiency, which could deliver $60-$80 million in annual savings from the next 12-18 months. So, these initiatives could aid Aurora Cannabis to move toward profitability.

StorageVault Canada

After delivering close to 9% returns last year, StorageVault Canada (TSXV:SVI) has continued its uptrend and is trading 36.1% higher for this year. Its solid performance in the first two quarters and strategic acquisitions have driven its stock price higher. During the first six months, the company’s revenue has increased by 29.9%, thanks to organic growth and acquisitions over the last four quarters.

So far this year, StorageVault has made $140 million worth of acquisitions, surpassing its expectations of $100 million for this year. Meanwhile, the company has now raised its acquisition target to $200 million for this year. Given the highly fragmented Canadian storage industry, the company is well-positioned to continue with its acquisitions.

Besides, higher occupancy and improvement in operational efficiency could also boost the company’s financials in the coming quarters. The company also raised its dividends recently, depicting the confidence in its cash flows. So, I am bullish on StorageVault.

Kinross Gold

My final pick would be Kinross Gold (TSX:K)(NYSE:KGC), which currently trades around 43% lower from its September highs. The decline in gold prices amid the improvement in economic activities appears to have dragged the company’s stock price. Meanwhile, the rising inflation could prompt investors to find refuge in gold, thus driving its prices higher. Higher gold prices, rising production, and increased output from low-cost mines could boost the company’s financials in the coming quarters.

Meanwhile, the decline in Kinross Gold’s stock price has also dragged its valuation down, with its forward price-to-earnings multiple standing at 12. The company also pays a quarterly dividend of $0.03 per share, with its forward yield standing at 1.5%. So, I believe Kinross Gold could be an excellent buy right now.

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.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.