Which Under-$10 TSX Stocks Have Strong Upside Potential?

Are you planning to bet on low-dollar stocks? These two Canadian companies have potential to outgrow the benchmark index.

| More on:
growing plant shoots on stacked coins

Image source: Getty Images

Several TSX-listed stocks are trading cheap and are priced below $10. However, not all have the potential to make you rich. Further, the uncertain economic environment continues to play spoilsport. Nevertheless, shares of a few high-quality Canadian companies are trading well under $10. These companies have proven business models, have been navigating the current macro challenges well, and have solid growth prospects. All these imply that these companies have the strong potential to deliver stellar returns. 

With this backdrop, let’s look at two under-$10 TSX stocks poised to outperform broader market averages. 


With solid secular sector tailwinds and a strong defensive moat, BlackBerry (TSX:BB)(NYSE:BB) is an attractive tech stock trading under $10. BlackBerry’s IoT (Internet of Things) and cybersecurity businesses continue to deliver strong sales, despite macro weakness. 

Further, BlackBerry’s guidance implies that the momentum in its business will sustain in the coming years. The higher enterprise spending on cybersecurity and the ongoing automation and electrification of vehicles provide a multi-year growth opportunity for BlackBerry. 

BlackBerry expects its revenue to grow at an average annualized rate of 13% in the coming five years. This growth outlook is backed by management’s optimism over its IoT and cybersecurity business. 

Management projects its IoT revenues to grow at a CAGR (compound annual growth rate) of 20% through 2027, reflecting new design wins. Further, its cybersecurity revenues are forecasted to grow at a CAGR of 10% during the same period. 

Besides the strength in its top line, BlackBerry expects productivity savings to support its gross margin expansion. Further, its recurring software product revenue and a growing addressable market will support its growth.

While BlackBerry is poised to deliver solid growth, its stock is available at a discount of 48% from the 52-week high. This correction in BlackBerry stock provides an opportunity for investors to start a long position.  

StorageVault Canada

StorageVault Canada (TSX:SVI) offers storage locations (rentable spaces) to individual and commercial customers. Investors should note that storage is among the best-performing real estate class, led by strong demand due to the growing population. 

Thanks to the strong demand, StorageVault has delivered strong revenue growth. Meanwhile, it continued to increase its store count and geographic locations. It owns 203 storage locations with 4,500 portable storage units. Meanwhile, StorageVault offers professional records management services and last-mile storage and logistics solutions to diversify its revenue further. 

StorageVault’s revenues and net operating income increased by 34% and 33% in 2021. Meanwhile, in the first half of this year, its top line grew by 30% year over year. Meanwhile, net operating income registered almost similar growth.

Looking ahead, an increase in storage space, cross-promotion, and marketing will drive its organic sales. Also, its expansion into portable storage, information and records management, and FlexSpace logistics businesses augur well for growth. 

StorageVault’s growth could accelerate further on the back of its accretive acquisitions. Moreover, its presence in the top Canadian markets, short-duration rentals (that help StorageVault address inflation-related challenges promptly), and high occupancy will support its growth and stock price.

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Tech Stocks

grow dividends
Tech Stocks

Celestica Stock Is up 44% Since Earnings: What Investors Need to Know

Celestica continues to benefit from strong demand and production efficiencies, yet the stock remains undervalued.

Read more »

healthcare pharma
Tech Stocks

What’s Going on With WELL Health Stock?

WELL stock (TSX:WELL) made strong moves once again, with record earnings and even higher guidance for 2024.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Based on these three top reasons, Shopify (TSX:SHOP) stock appears undervalued to buy right now.

Read more »

stock research, analyze data
Tech Stocks

What’s Going on With Lightspeed Stock?

Lightspeed (TSX:LSPD) stock has been climbing once more but is still far from its three-digit share price. So, is it…

Read more »

Target. Stand out from the crowd
Tech Stocks

Missed Out on Nvidia Stock (Again)? Buy Descartes Instead

Nvidia (NASDAQ:NVDA) stock soared yet again after earnings, passing the four-digit mark. But with shares so high, maybe this option…

Read more »

Group of people network together with connected devices
Tech Stocks

This Is the Best Overlooked AI Stock on the TSX Today

This AI stock has been a top growing in the last while, but remains overlooked despite its strong portfolio and…

Read more »

Different industries to invest in
Tech Stocks

Why This AI Stock Surged 363% in Just 1 Year

This AI stock has surged this year by almost 400%! And yet this could only be the beginning for this…

Read more »

Online shopping
Tech Stocks

2 Growth Stocks Bay Street Might Be Sleeping On, but I’m Not

I'm not sleeping on Taiwan Semiconductor (NYSE:TSM) stock. Shopify (TSX:SHOP) is a Canadian stock with similar growth rates.

Read more »