3 TSX Small Caps to Buy Right Now

Small cap stocks can provide you with superior growth, but can often be volatile. That’s not the case for these three.

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Amongst all the cheap stocks out there right now, small cap stocks can provide you with superior growth over a shorter period. Though these stocks can sometimes be more volatile, so it’s important to find the right small cap stocks on the TSX.

Today, I’ve found the exact ones you’ll want to own.

Jamieson Wellness

With a market cap at $1.5 billion, Jamieson Wellness (TSX:JWEL) is a great option for Canadian investors today. The company provides natural wellness products and has connections with some of the biggest blue-chip companies in the industry.

The natural health products supplier was one of the small cap stocks to raise its dividend and its financial guidance for the year. Revenue, on an upward growth trajectory since 2018, increased 1.3% to $112 million year over year. Earnings also are on track for a fifth consecutive year of growth. Although Q2 net income slipped slightly over Q2 a year ago, earnings have grown 12.5% to $19.8 billion in the first half of 2022, over the year-ago period. Following the acquisition of Nutrawise last year, management has increased its guidance.

Shares of Jamieson stock are still down 8.5% year to date, even after the strong earnings. Jamieson has increased its dividend by 13.3%. So now is the time to lock in the company’s long-term path to growth, and 1.87% dividend yield.

Uni-Select

Uni-Select (TSX:UNS) has a market cap of $1.65 billion as of writing. Analysts have marked this automotive finish and industrial coating producer a great buy. Not only is it in a solid position providing the finishing touches to car parts, but it has operations around the world.

And during its recent earnings, it was one of the small cap stocks that saw sales actually rise year over year. All while inflation and interest rates should have tamped it back. Still, it beat out the expected sales of $442.4 million, reporting a 6.5% increase to $444.3 million for the second quarter over the year-ago period. Earnings turned positive, rising 212.5% to $30.5 million.

Shares of Uni-Select stock have done exceptionally well this year, up 49% year to date! Even still, it trades at a fair 26 times earnings, with analysts expecting even more growth from the stock.

Artis REIT

For some superb value from small cap stocks, think about Artis REIT (TSX:AX.UN). The real estate investment trust (REIT) has a market cap at $1.3 billion, and provides investors with exposure to the industrial and office sector. While the latter might be dwindling slightly, the former is ramping up by leaps and bounds.

In fact, the company has been divesting itself of some office properties in favour of industrial properties. And not just in Canada, but in the United States as well. Yet it still trades at a valuable 4.6 times earnings, with a dividend yield of 5.26%.

Shares of Artis stock are down 1.5% year to date, starting a recovery in the last month or so with other rebounding companies. Meanwhile, AX has still grown quite steadily, up 19% in the last five years alone.

Bottom line

Small cap stocks can provide stellar growth if you find the right ones. Luckily, these three are in strong, stable industries and are only growing stronger. Long-term investors would certainly do well to consider any of these great buys for their watchlist today.

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

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