Despite the uncertainty stemming from the emergence of the new variant of coronavirus, long-term investors shouldn’t worry much and should continue to buy the dip in top Canadian stocks. So, if you plan to invest $1,000 for the long term, here are my top five picks trading under $50.
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Goodfood Market
Thanks to increased spending on e-commerce platforms and the adoption of online grocery services, I am bullish on the long-term prospects of Goodfood Market (TSX: FOOD). After outperforming the benchmark index for the past three years, shares of Goodfood Market have witnessed a sharp selloff and are down about 63% in 2021. The decline reflects a moderation in its growth amid the reopening of retail locations.
Despite the easing of lockdown mandates, I expect the Goodfood Market to continue to gain market share and deliver strong financials on the back of its fast delivery capabilities. Meanwhile, expansion of its product offerings and strengthening of its fulfillment networks will likely drive its active customer base, basket size, and order frequency.
Enbridge
Enbridge (TSX: ENB)(NYSE: ENB) is a must-have long-term bet for both growth and income. Its diversified cash flows, contractual framework, multi-billion-dollar capital program, strength in the core business, strategic acquisition, and opportunities in the renewable segment augur well for growth and are likely to support its payouts.
Enbridge has been consistently growing its dividends at a CAGR of 10% and currently offers a stellar yield of about 7%. Further, Enbridge’s forward EV/EBITDA multiple of 11.7 is well below its pre-pandemic levels, making it an attractive investment.
BlackBerry
BlackBerry (TSX: BB)(NYSE: BB) stock has been volatile throughout 2021. Its stock gained immensely from the increased spending on cybersecurity threats amid an ongoing digital transformation and a revival in the automotive market. However, profit booking and a broader market selloff led to a 14% decline in BlackBerry stock in 10 trading days.
BlackBerry stock is trading cheap, and I expect it to benefit from solid billings, new product launches, market share gains, a growing customer base. Furthermore, its growing addressable market and ongoing automation and electrification in the auto market provide a long runway for growth.
Dye & Durham
Dye & Durham (TSX: DND) is another solid long-term stock in the tech space, trading under $50. This cloud-based software and technology company witnessed a healthy pullback and is offering a solid buying opportunity. Dye & Durham is growing fast, reflected through the stellar growth in its revenues and adjusted EBITDA.
Its diversified customer base, high retention rate, geographical expansion, and long-term contracts with top customers will support its growth. Furthermore, its strong M&A pipeline and strong balance sheet will likely accelerate its growth rate.
Payfare
Financial technology company Payfare (TSX: PAY) is a solid bet for long-term investors. Payfare offers payment solutions and digital banking services to gig workers, and thanks to the stellar demand for on-demand services, it has been growing rapidly.
With the growing gig economy, I expect Payfare to deliver solid financial and operating performance. Its strong recurring revenue base, lower customer acquisition cost, and cost-optimization initiatives provide a strong platform for growth. Meanwhile, Payfare has teamed up with leading marketplaces and platforms, which will likely fuel its growth.
