2 Under-$10 Growth Stocks That Can Be Part of Your RRSP Today

Growth stocks such as Hut 8 Mining and Jushi Holdings can help investors derive inflation-beating returns over time.

| More on:
Money growing in soil , Business success concept.

Image source: Getty Images

Every individual wants to retire with financial security that allows them to lead a comfortable life in retirement. Investing for retirement is a tricky process, as you need to consider a multitude of factors that includes your risk profile, inflation rate, estimated annual expenses, and, more importantly, choosing the right investment vehicle.

While it’s advisable to allocate a significant portion of savings towards ETFs or exchange-traded funds that track the S&P 500, you can also look to buy and hold growth stocks that can outpace the broader markets over time.

Stock picking is difficult, as investors need to understand the industry in which the company operates, the key drivers and trends that impact revenue and profitability, as well as the capability of the management team to execute and deliver on long-term growth strategies consistently.

An RRSP is an investment and savings account that allows you to grow your money with certain tax benefits. Any contributions towards the RRSP, or Registered Retirement Savings Plan, are tax deductible and will lower your taxable income for the year. Further, you can contribute up to 18% of your annual income towards the RRSP. We’ll take a look at two low-priced growth stocks that should be part of your RRSP portfolio today.

Hut 8 Mining

If you are bullish on the cryptocurrency space, it makes sense to buy and hold shares of Hut 8 Mining (TSX:HUT)(NASDAQ:HUT), a company valued at a market cap of $1.51 billion. Hut 8 mines cryptocurrencies such as Bitcoin (CRYPTO:BTC) and Ethereum, which means its stock price will be linked to the prices of these digital assets.

Hut 8 stock is down 54% from its 52-week high due to the ongoing selloff in the cryptocurrency space. It has installed more than 10,000 highly efficient graphic processing units, allowing Hut 8 to mine Bitcoin at a total cost of less than US$3,000. At the end of January 2022, Hut 8 held 5,826 Bitcoins in reserve, which is among the highest when compared to other mining companies. So, Hut 8 is well poised to derive massive profits if Bitcoin prices continue to rise.

Jushi Holdings

It’s been a rough year for cannabis stocks such as Jushi Holdings (CNSX:JUSH), which is down 50% from all-time highs, valuing it at a market cap of $1.1 billion. However, Jushi continues to grow the top line at a rapid pace and increased sales by 116% to US$54 million in Q3 of 2021. Comparatively, adjusted EBITDA rose by 129% to US$6.4 million, driven by Jushi’s rising dispensary count in half-a-dozen states.

Jushi confirmed around 80% of sales it generated online with an average cart size of US$122. It also claimed that online sales surpassed US$1 million on three separate days during October and November. Further, its conversion rate stands at 14%, which is significantly higher than the industry average of 3%.

Jushi forecasts to end 2021 with sales of US$210 million and adjusted EBITDA of US$21 million, indicating a margin of 10%. Analysts tracking the stock have a 12-month average price target of US$6.91, which is 50% above its current trading price.

Jushi Holdings is one of the top marijuana stocks in the world right now, given it’s expected to increase sales to US$1.5 billion with an adjusted EBITDA of US$467 million by 2025.

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.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool owns and recommends Jushi Holdings, Bitcoin and Ethereum.

More on Investing

Gold bars
Metals and Mining Stocks

Why Alamos Gold Jumped 7% on Wednesday

Alamos (TSX:AGI) stock and Argonaut Gold (TSX:AR) surged after the companies announced a friendly acquisition for $325 million.

Read more »

tsx today
Stock Market

TSX Today: Why Record-Breaking Rally Could Extend on Thursday, March 28

The main TSX index closed above the 22,000 level for the first time yesterday and remains on track to post…

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

If You’d Invested $1,000 in Cameco Stock 5 Years Ago, This Is How Much You’d Have Now

Cameco (TSX:CCO) stock still looks undervalued, despite a 258% rally. Can the uranium miner deliver more capital gains to shareholders?

Read more »

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

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Growth Stocks I’m Buying in April

These three growth stocks are up in the last year, and that is likely to continue on as we keep…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

clock time
Tech Stocks

Long-Term Investing: 3 Top Canadian Stocks You Can Buy for Under $20 a Share

These three under-$20 stocks offer excellent buying opportunities for long-term investors.

Read more »

Arrowings ascending on a chalkboard
Energy Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Canadian Natural Resources stock is well set up to beat the TSX as it continues to generate strong cash flows…

Read more »