3 TSX Stocks Under $5 Making Massive Gains

There are plenty of TSX stocks out there that remain cheap, but these three are a bargain based on share price and future outlook alone!

The S&P/TSX Composite Index is back, rising to all-time highs yet again this week on the back of strong earnings reports. In many cases, earnings have beat expectations. And that doesn’t just mean with large TSX stocks. Some of the cheap companies also continue to rise. So let’s look at three stocks Motley Fool investors can consider on the TSX today.

1. HIVE stock

HIVE Blockchain Technologies (TSXV:HIVE)(NASDAQ: HIVE) saw gains this week from some strong cryptocurrency news. The U.S. Securities and Exchange Commission gave the green light for cryptocurrency exchange-traded funds. This means the company could see a massive increase in mining in the next year and beyond.

For now, investors could look forward to another strong quarter in the near future. Last quarter, the company earned a net income of $18.6 million, with working capital increasing to $20.9 million. There was an increase in revenue from digital currency mining of 20% year over year and growing.

Shares of HIVE stock are up 24% in the last month, 84% year to date, and 927% in the last year! Yet it remains a cheap stock with a P/E ratio of 18.8 as of writing, and trading at just $4.48. Sales are set to skyrocket in this year alone with this news, so investors wanting exposure to cryptocurrency among TSX stocks you would do well to consider HIVE stock.

2. Fobi Ai

Want the point-of-sale growth without the high share price? Then you’ll want to consider Fobi Ai (TSXV: FOBI). The point-of-sale company has been expanding slowly but surely, making deals for large companies to use its wallet pass. And it could be one of the top growth stories of the year.

The company uses its artificial intelligence service to allow brick-and-mortar retailers a platform that connects their store to their online presence. It’s a plug-and-play system that makes it easy to use no matter where you are in the world. Fobi has been acquiring more and more companies and could be one of the TSX stocks you’ll wish you had bought at this share price.

Shares of Fobi stock are up 19% year to date and 628% in the last year! But currently, it’s experiencing a pullback of 13% in the last month, offering a prime jumping-in point. At just $2.44, it’s an incredibly cheap stock among TSX stocks, so even a small stake could mean massive gains.

3. Bombardier

Finally, if you want a company that could soar through 2021 and into 2022, I would highly consider Bombardier (TSX: BBD.B). Bombardier stock already went through a downfall before the pandemic and is now coming out the other end. Whereas other airlines are struggling, Bombardier stock is one of the TSX stocks on the rebound.

The biggest change is focusing on its business jet line, cutting ties with basically everything else. The recent announcement was followed by a US$534 million purchase of 20 of its new Challenger 3500 jet planes. Now, it’s touring air shows to show off its new jet, with hopes of even more purchases. In fact, there could be a backlog with supply chain issues, and that’s the only thing that could slow down TSX stocks like Bombardier.

As for now, Bombardier stock recently raised its full-year guidance. It now expects to deliver 120 units and achieve $5.8 billion in revenue, with adjusted EBITDA great than $575 million. This is far higher than the $100 million to $500 million expected before.

Yet again, shares trade at just $2 as of writing. That’s a 325% increase year to date, 518% in the last year, and 7.4% in the last month. Analysts believe as sales continue, shares will rise, but it’s unclear how much. Long-term, however, this is a strong investment as the company remains focused on its jet business.

Fool contributor Amy Legate-Wolfe owns shares of Bombardier. The Motley Fool has no position in any of the stocks mentioned.

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