Top Under-$2 Canadian Stocks to Buy Hand Over Fist in September 2022

These two cheap Canadian stocks could yield high returns on your investment in the long run.

| More on:

Image source: Getty Images

Stocks in Canada have seen a sharp selloff in the last few months. Despite starting 2022 on a positive note, high inflationary pressures and rising interest rates have taken a toll on investors’ sentiments by raising the possibility of a near-term recession. Nonetheless, it could still be the right for long-term investors to buy some fundamentally strong stocks in bulk at a big bargain.

In this article, I’ll highlight two top Canadian stocks that currently trade under $2 per share but might not remain cheap for very long.

Denison Mines stock

Denison Mines (TSX:DML)(NYSE:DNN) is my first stock pick to consider if you’re looking to buy some cheap stocks in Canada right now. It’s a Toronto-based uranium mining firm with a market cap of about $1.4 billion. DML stock currently trades at $1.76 per share without any major change on a year-to-date basis.

Notably, Denison Mines has about 95% interest in the Wheeler River project, which is the biggest undeveloped uranium project in the eastern Athabasca Basin. The first production at the Wheeler River project is expected to start in 2024. Also, the company has about 22.5% and 66.9% interest in other uranium projects like McClean Lake Uranium Mill and Waterbury Lake project, respectively.

In recent weeks, many developed nations, including Japan and some western countries, have shown willingness to increase their nuclear power generation capacity by restarting their idled nuclear reactors. As uranium is the main fuel used in nuclear reactors, the demand outlook for uranium is getting brighter, which could lead to a big long-term rally in uranium prices. These developments also could trigger a sharp rally in DML stock as higher uranium prices help miners expand their profit margins. That’s why I consider this cheap, under-$2 Canadian stock worth buying right now to hold for the long term.


IAMGOLD (TSX:IMG)(NYSE:IAG) is another cheap Canadian stock to consider buying in September. The shares of this mid-tier gold mining company currently trade with 58% year-to-date losses at $1.66 per share, despite starting 2022 on a strong note.

Apart from operating its three main mines in West Africa, Canada, and South America, IAMGOLD is currently focusing on the development of its Côté Gold project in northeastern Ontario. The first production at its new Côté Gold project is likely to start in the first quarter of 2024, with an expected initial mine life of about 18 years.

In the second quarter, IAMGOLD’s total revenue rose by 25.8% YoY (year over year) to $334 million based on an average realized gold price of around US$1,799 per ounce. With the help of its strong production activity at its Essakane mine during the quarter, the company reported a 15.3% YoY rise in its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter to $110 per share.

While IAMGOLD’s financial growth might not look very impressive in the near term due to rising inflationary pressures, its long-term growth outlook remains solid, with high expectations from its Côté Gold project’s output. Considering these expectations, a massive year-to-date decline in its stock makes it look cheap to buy for the long term.

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.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

gold stocks gold mining
Metals and Mining Stocks

Is it Time to Grab TSX Gold Stocks at Their Multi-Year Lows?

Gold stocks generally outperform in falling markets. However, this time, it's different.

Read more »

Upwards momentum
Energy Stocks

Gold and Energy: Here Are Two of the Best Stocks to Buy Now

Gold and energy stocks are some of the best to buy now for very different reasons.

Read more »

Nickel ore is mined from the ground.
Metals and Mining Stocks

2 Top Commodity Kingpins to Hedge Your TFSA Portfolio

Consider Nutrien (TSX:NTR)(NYSE:NTR) and another top commodity play to hedge your TFSA portfolio right now.

Read more »

Business man on stock market financial trade indicator background.
Dividend Stocks

2 of the Best Stocks to Buy That Have Ultra-Safe Dividends

These two dividend stocks are among the best to buy now due to their reliability and the attractive passive income…

Read more »

People walk into a dark underground mine.
Metals and Mining Stocks

These 2 Commodity Stocks May Be Super Cheap

Gold stocks and energy stocks appear to be very cheap. Interestingly, they're in opposite kinds of environment right now.

Read more »

TSX Today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Monday, September 19

With speculations about the U.S. Fed’s upcoming policy move and economic projections, TSX stocks could remain highly volatile in the…

Read more »

Gold bullion on a chart
Metals and Mining Stocks

2 Gold Stocks to Buy That Are Unbelievably Cheap

While plenty of stocks trade at significant discounts today, gold stocks and these two, in particular, are some of the…

Read more »

Dividend Stocks

3 Metal Commodity Stocks You Can Buy at a Massive Discount

Even though each metal market is different, the stocks representing three major metal commodities are simultaneously discounted right now.

Read more »