Investors can start investing in stocks with as much money as they want. For instance, one can buy three fundamentally strong Canadian stocks for $100. However, it’s important to state that one should not buy stocks based on the lower dollar price. So, for investors planning to invest in stocks with small capital, here are three no-brainer stocks to buy for $100.
Lightspeed
While several Canadian tech stocks recovered swiftly in 2023, Lightspeed (TSX: LSPD) stock hardly gained. A higher interest rate environment and economic uncertainty limited the upside potential. Nonetheless, Lightspeed, which provides a cloud-based commerce platform, remains a solid long-term investment as it is poised to benefit from the ongoing digital shift towards omnichannel platforms.
Lightspeed offers two flagship solutions focusing on small- and medium-sized businesses in the restaurant and retail space. Despite the macro headwinds, it has delivered strong growth led by higher gross transaction volume (GTV) and gross payment volume (GPV). With the improvement in the economy, more retailers and restaurateurs will likely increase spending on the modernization of their legacy payments infrastructure, expand to new locations, and grow technology spending, which will drive demand for Lightspeed’s products and services.
With two core offerings, Lightspeed is targeting large customers with high GTV. The strategy will increase its average revenue per user and reduce churn. Furthermore, it will help the company to boost margins and achieve profitability. Also, Lightspeed is expected to gain from accretive acquisitions, which will drive its customer locations and enhance its market share. Further, with an enterprise value-to-sales multiple of 1.6, Lightspeed stock is trading incredibly cheap, offering an excellent buying opportunity.
WELL Health
Trading at the next 12-month enterprise value-to-sales multiple of 1.7 shares of digital healthcare company WELL Health (TSX: WELL) is another no-brainer stock to buy near the current levels. Despite tough year-over-year comparisons, WELL Health continues to grow its revenue at a healthy pace. Moreover, it has turned profitable, which is encouraging.
Looking ahead, WELL Health is expected to gain from the ongoing omnichannel patient visits. Further, the momentum in its high-margin virtual services business remains positive. The company will also benefit from investments in AI (artificial intelligence) and strategic acquisitions, which will accelerate its growth and expand its addressable market.
The company is growing at a decent pace, generates strong cash flows, and is trading cheap, making it an attractive investment near the current levels.
Docebo
My final pick is Docebo (TSX: DCBO). The company provides a cloud-based platform for enterprise learning. Further, Docebo stock has gained nearly 37% year to date. Its growing enterprise customer base, strong recurring revenues, and multi-year contracts with customers position it well to deliver solid growth in the coming years.
Moreover, Docebo’s focus on expanding its product base, driving addressable market, and accretive acquisitions will likely accelerate its growth rate in the coming years.
Docebo also focuses on growing its generative AI capabilities. The company recently acquired Edugo.AI, which will enhance the AI capabilities of its platform, automate the creation of e-learning courses, and strengthen its competitiveness.
DCBO has solid fundamentals, trades at a reasonable valuation, and offers good growth prospects.
