Investing in stocks doesn’t necessitate a substantial capital outlay. In fact, shares of several fundamentally strong companies are trading well below $100. This means that investors can begin their stock investment journey with whatever funds they have available. However, it’s important to exercise caution and avoid investing in stocks solely because they have a lower price tag.
With this background, let’s look at three no-brainer Canadian stocks investors can buy for just $100.
Lightspeed
While tech stocks showed signs of recovery in 2023, Lightspeed (TSX:LSPD) has lagged behind. Nonetheless, the fundamentals of this cloud-based payment platform provider remain strong, implying investors should use this opportunity to buy its shares cheaply and benefit from the recovery rally.
As Lightspeed offerings facilitate multichannel commerce, the company is poised to benefit from the ongoing digital transformation. With the improvement in the economy, an increased number of merchants will modernize their outdated payment systems and expand their footprint. This increased spending on technology will drive significant demand for Lightspeed’s point-of-sale (POS) solutions and digital products.
The company also stands to benefit from the change in its go-to-market strategy. Lightspeed focuses on growing the number of customers with high GTV (gross transaction value). It’s worth noting that high GTV customers have the potential to adopt its multiple modules, which will eventually drive its organic revenues, reduce churn, and increase its average revenue per user. Moreover, the company focuses on accretive acquisitions, which expand its customer locations and product portfolio.
Overall, Lightspeed is well-positioned to deliver strong growth in the coming years. Meanwhile, its enterprise value-to-sales multiple is near an all-time low, providing a solid entry point.
Docebo
Within the technology space, one could also consider investing in the shares of Docebo (TSX:DCBO). Thanks to its solid fundamentals and growing enterprise customer base, Docebo stock has gained over 41% in one year. Further, its stellar recurring revenues and multi-year contracts support my bull case.
The company provides a cloud-based platform for enterprise learning. What stands out is that its customer base increased from 1.2K in 2017 to 3.6K so far in 2023. Furthermore, its average contract value has multiplied.
Overall, the increasing deal size, a strong customer retention rate, and strategic emphasis on upselling and cross-selling products provide a solid platform for long-term growth. Further, opportunistic acquisitions are likely to accelerate Docebo’s growth rate. The company is also integrating generative artificial intelligence (AI) capabilities into its platform, which will boost productivity and make it more competitive. Docebo stock is trading at a reasonable valuation near the current levels, making it an attractive investment option.
Telus
Telus (TSX:T) could be another reliable bet for long-term investors. The company has a history of delivering profitable growth, which enables it to enhance its shareholders’ returns through share buybacks and higher dividend payments.
It’s worth highlighting that Telus has paid over $18 billion in dividends to its shareholders since 2004. Further, Telus intends to grow its annual dividend by 7-10% through 2025 and offers a juicy yield of over 6%. This makes Telus a top stock for income investors.
Thanks to its growing earnings base, the company consistently enhances its network capabilities. This increases its competitiveness, helps in growing its customer base, and reduces churn. The company is expanding its PureFibre infrastructure and 5G services, which will drive its future earnings and stock price.
