3 Canadian Tech Stocks I’d Buy Under $20

These Canadian tech stocks are too cheap to ignore and have the potential to deliver solid returns in the long term.

| More on:
A close up image of Canadian $20 Dollar bills

Image source: Getty Images

The Canadian tech stocks marked a recovery in 2023. Despite the recent gains, shares of several Canadian companies are trading cheap, making them an attractive investment for the long term. I’ll discuss three high-growth Canadian stocks priced under $20 with the potential to deliver multifold returns in the coming years. 


Speaking of the top under-$20 stocks, investors should keep Payfare (TSX:PAY) on their radar. This financial technology company provides payments, digital banking, and loyalty-rewards solutions to the gig economy workforce. Like most TSX tech stocks, shares of Payfare witnessed a recovery and are up about 39% year to date. 

It’s worth highlighting that Payfare has consistently delivered solid financials regardless of economic uncertainty. Its top line is growing fast on the back higher active user base. For instance, Payfare’s revenue increased 76% in Q1 (first quarter) of 2023 due to a 62% increase in its active user base. Thanks to the higher sales, Payfare has generated positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in the past several quarters. 

Looking ahead, Payfare’s strategic partnerships with the top food delivery and ride-sharing platforms, international expansion, and new customer wins position it well to deliver solid growth. Also, its recurring revenue base, new product launches, and lower customer acquisition costs augur well for future growth. 

WELL Health 

WELL Health (TSX:WELL) is another top under-$20 stock poised to deliver stellar returns in the long term. After a sharp decline in 2022, shares of this digital healthcare company recovered swiftly in 2023 and are up about 62% year to date. 

The significant growth in WELL Health stock is backed by its robust financial performance amid a challenging macro environment and easing of restrictions. WELL Health’s revenue is growing rapidly, reflecting higher omnichannel patient visits. Further, the company’s management remains upbeat and raised the full-year revenue-growth guidance, indicating the strength of its business. 

The continued increase in its omnichannel patient visits and momentum in the high-margin virtual services revenue suggests that WELL Health will likely deliver solid organic growth in the coming quarters. In addition, its investments in AI (artificial intelligence) technologies and strategic acquisitions will support its growth by expanding its addressable market and new product development.  

WELL Health is profitable and is growing at a decent pace. Further, it generates robust cash flows. Despite the recovery, WELL Health stock is trading too cheap to ignore. It is trading at a forward enterprise value-to-sales multiple of two, much lower than the historical average, providing a solid entry point near the current levels. 

Absolute Software

The final stock on this list is Absolute Software (TSX:ABST). The company provides endpoint security solutions and is well positioned to capitalize on the ongoing digital transformation and growing demand for cybersecurity products and solutions. 

Absolute Software continues to perform well, thanks to the momentum in its enterprise and government segment, which drives its overall annual recurring revenue base. While its sales are growing at a decent pace, Absolute Software’s adjusted EBITDA has increased at a compound annual growth rate of 57% between fiscal 2018 and fiscal 2022. Furthermore, its net dollar retention rate remains high. 

Looking ahead, the secular sector tailwinds, geographical expansion, accretive acquisitions, new products, customer wins, and cross-selling opportunities will likely drive its stock price higher.

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 positions in and recommends Absolute Software. The Motley Fool has a disclosure policy.

More on Tech Stocks

A colourful firework display
Tech Stocks

Nuvei Stock is on Fire This Year: Is it a Good Buy Today?

Nuvei stock (TSX:NVEI) is down about 85% since pandemic highs, falling 39% after earnings. So, what now?

Read more »

A bull outlined against a field
Tech Stocks

Prediction: These 2 Stocks Could Skyrocket in the Next Bull Market

Are you looking for stocks that could skyrocket in the next bull market? Here are two top picks!

Read more »

Volatile market, stock volatility
Tech Stocks

2 Tech Stocks On Sale in This Latest Tech Sell-off

Constellation Software (TSX:CSU) and Lightspeed Commerce (TSX:LSPD) went on sale in the latest tech sell-off.

Read more »

Dividend Stocks

3 No-Brainer Stocks to Buy With $200 Right Now

Are you looking to invest $200 in stocks right now? Here are three no-brainer stocks to invest your money in…

Read more »

analyze data
Tech Stocks

3 Top TSX Stocks to Buy in October 2023

Here's why undervalued TSX stocks such as goeasy and Dollarama should be on your shopping list in October 2023.

Read more »

Dollar symbol and Canadian flag on keyboard
Tech Stocks

Stock Market SellOff: 2 Canadian Growth Stocks to Buy Hand Over Fist

Here are two of the best Canadian growth stocks you can buy at a big bargain amid the market selloff.

Read more »

Businessman holding AI cloud
Tech Stocks

Investing in AI Stocks: 3 Companies Poised to Dominate the AI-Powered Economy!

NVIDIA, Alphabet, and Microsoft are 3 AI stocks offering investors exposure to different aspects of the AI opportunity.

Read more »

man sitting in front of 3 screens programming
Tech Stocks

2 Growth Stocks to Hold for the Next 10 Years

Are you interested in growth stocks? Here are two picks to hold for the next 10 years!

Read more »