3 TSX Stocks Under $5 That Are a Legit Value Today

These three TSX stocks may be in a bad way right now, but have the ability to surge out of this downturn and create incredible returns for investors.

| More on:

Image source: Getty Images

There are cheap stocks, and then there are far below averages, super-undervalued, incredibly cheap stocks. The TSX stocks I’m going to discuss today are definitely in that category. Each trades under $5 per share, and offers insane value on the TSX today.

The main issue regarding these three TSX stocks? Each is in a sector that’s doing quite poorly, and could do even worse in the year to come. On the surface, that looks like bad news. But long-term investors should know better.

If you hold these three TSX stocks far longer, you’re bound to see shares not only improve, but soar past the $5 share price they currently offer.

Canopy Growth

First up we have former heavy hitter Canopy Growth (TSX:WEED). Canopy Growth stock hit all-time highs near $70 per share before falling into oblivion. And what’s more, things seem to have gone from bad to worse. Not only was it one of the only cannabis producers to still not produce a profit, it seems be undergoing layoffs and cost cutting quarter after quarter.

But it’s not all bad news. After news that there would be pardons from the White House for simple marijuana possession, Canopy Growth stock moved forward with their plan to take over the U.S. cannabis market.

Further, the company also has profitable avenues such as sports drinkmaker BioSteel working for them. In this case, in the next decade, Canopy Growth stock could narrow in on some new profit-producing ventures, while taking on the largest cannabis market in the world.

Canopy Growth stock is one of the TSX stocks trading below $5 at $3.15 per share as of writing. Shares are down 64% in the last year.


Another company that’s seen a major drop in the last year is Dorel Industries (TSX:DII.B). The company made a huge move during the pandemic, selling off its biking sector for a major cash infusion.

With those bicycle days long gone, Dorel is now focusing on home and baby products. These aren’t products that are top of mind during a recession. The company has missed estimates quarter after quarter, sending shares in a downward spiral.

So, let’s focus on the future. Now Dorel stock is definitely undervalued. It trades at just 0.35 times book value as of writing! When inflation gets under control and we come out of a recession, analysts practically guarantee a surge in share price. Definitely higher than the $4.65 where it trades right now. Meanwhile, shares are down 60% in the last year alone.


Finally, Ensign Energy Services (TSX:ESI) is one of the TSX stocks I would certainly consider that’s under $5 on the TSX today. But here’s the twist, Ensign stock has actually been doing quite well over the last few years.

With the bump in oil and gas prices, Ensign stock climbed for investors. In fact, shares are still up by 24% in the last year alone! Even so, with share prices so low investors will likely continue to feed into the stock whenever there is strength in the oil and gas sector.

Analysts predict its current $3.19 share price could actually double in the next year alone. So I would certainly consider buying this stock for a quick turnaround over the next few years.

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 positions in Canopy Growth. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

Man holding magnifying glass over a document
Stocks for Beginners

TFSA Investors: Make Your Recession Watchlist Now!

These long-term stocks offer immense value for TFSA investors looking to create immense returns coming out of a recession.

Read more »

Profit dial turned up to maximum
Dividend Stocks

2 TSX Dividend Stocks With Seriously Huge Payouts

The TSX telecom sector has some great high-yielding companies up for grabs.

Read more »

TFSA and coins
Dividend Stocks

Dividend Stocks With Yields TFSA Investors Should Lock In Now!

Are you looking to build a passive-income stream? Here are two top dividend stocks to load up on in your…

Read more »

Gas pipelines
Energy Stocks

Better Energy Stock to Buy: Suncor or Canadian Natural Resources?

Suncor and Canadian Natural Resources are off their recent highs. Are these stocks now good to buy?

Read more »

tsx today
Stocks for Beginners

TSX Today: What to Watch for in Stocks on Thursday, March 23

TSX stocks may remain volatile, as investors continue to assess how the high interest rate environment could affect the economy…

Read more »

A plant grows from coins.
Dividend Stocks

2 Young TSX Stocks You’ll Be Glad You Bought in 10 Years

Youth means nothing when you plan to hold strong companies long term. These two TSX stocks should therefore be first…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

Is it a Trap? 3 TSX Stocks With Ultra-High Dividend Yields 

Who doesn’t love dividends? But the high-interest rate environment makes ultra-high dividends unsustainable. Are these stocks a value trap?

Read more »

Value for money
Dividend Stocks

3 Value Stocks for Superior Returns in 2023

Given their solid underlying businesses, stable cash flows, high dividend yields, and attractive valuations, these three undervalued TSX stocks could…

Read more »