Canadian stock market investors have had a decent year of trading on the TSX in 2021. Barring a few rough patches, the S&P/TSX Composite Index has had a terrific performance. At writing, the Canadian benchmark index is up by 21.78% year to date. Canadian investors do not have much to complain about with the bull run on the stock market.
Multiple factors have contributed to the sustained run on the stock market. Tech firms took the mantle amid the changing global landscape due to the pandemic, and a resurgence in crude oil demand in 2021 led the charge for the index, as the tech industry went through a pullback. Many investors are considering delving into undervalued stocks that could provide them with stellar shareholder returns.
While the Canadian stock market has consistently traded at or near all-time highs, the TSX has plenty of opportunities for value investors. Today, I will discuss two Canadian stocks that you could consider investing in with less than $100 and enjoy long-term shareholder returns through capital appreciation, as the undervalued stocks see an upside correction.
Absolute Software (TSX:ABST)(NASDAQ:ABST) is a top Canadian tech stock that has been battered and bruised due to the tech sector pullback. If you are looking for undervalued stocks, Absolute Software could be a strong candidate to consider. The stock is trading for $14.24 per share at writing, and it is down by over 30% from its February 2021 high.
Despite the drastic drop in its share prices, Absolute Software stock is up by almost 140% in the last five years. Investing in the stock at its current levels could deliver substantial returns, provided that the company can get back to its profitable ways and exhibit an upside correction in the coming months.
Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is another Canadian stock that could be well worth your money if you are looking for a stock with the potential to deliver stellar long-term capital appreciation. When you think of wealth growth, utility companies rarely come to mind. However, this utility business might be more than a mere defensive stock for your portfolio.
Algonquin stock has extensive utility businesses. However, the real growth lies in its growing exposure to the renewable energy industry. The global demand for renewable energy is expected to gradually phase out fossil fuel reliance. As the global focus on renewable energy increases, companies with extensive renewable energy exposure will be well positioned to capitalize on the trend.
Algonquin stock is trading for $17.81 per share at writing, down by 14.29% year to date. The stock boasts an inflated 4.86% dividend yield that you could lock into your portfolio at its current levels and enjoy stellar shareholder returns through capital gains as the stock recovers.
If you have $100 available to invest, you can easily use that meagre amount to establish a decent position in both companies. The stellar track record for both companies indicates that Algonquin stock and Absolute Software stock have the potential to deliver substantial shareholder returns through long-term capital appreciation. It could be worth your while investing in these two companies.