The Best Stocks to Buy With $300 Right Now

Canadian stocks like Lightspeed have the potential to deliver above-average returns and are trading well below their highs, presenting a solid buying opportunity.

| More on:

As equities have historically outperformed the returns of other asset classes, investing in stocks can help you create significant wealth in the long term. Further, investors don’t need a lot of capital to start investing in the equity markets, as numerous stocks with solid fundamentals and the potential to deliver above-average returns are trading well below their highs, presenting a solid buying opportunity. 

With this backdrop, let’s look at the three best Canadian stocks to buy with $300 right now.

Lightspeed 

Shares of the technology company Lightspeed (TSX:LSPD) have gained over 27% over the past year. However, LSPD is still well below its highs and trading extremely cheap on the valuation front. For instance, Lightspeed stock is trading at an enterprise value-to-sales (EV/Sales) multiple of 2.1, which is near an all-time low. While Lightspeed stock offers significant value near the current levels, it continues to deliver solid financial performance that supports its bull case. 

Lightspeed provides a cloud-based commerce platform. It focuses on small- and medium-sized businesses in the retail and restaurant sectors. The company is well-positioned to benefit from the shift in selling models towards multi-channel platforms as it will drive demand for its payment solutions. Further, increased investment in technology by small- and medium-sized merchants will likely bolster the demand for Lightspeed’s products. 

Besides durable revenue growth, Lightspeed stock will likely get a boost from its focus on expanding its customer base with high gross transaction value (GTV). These customers have the capacity to adopt its multiple modules, which will drive its average revenue per user and lower churn rate. Along with organic growth, Lightspeed’s strategic acquisitions will likely expand its customer locations and strengthen its competitive positioning, supporting its growth. 

WELL Health 

WELL Health Technologies (TSX:WELL) stock is an attractive long-term investment. This digital healthcare company has been consistently and rapidly growing its revenues. Moreover, it is profitable. However, what stands out is that WELL Health continues to drive patients to its platform despite economic reopening. Further, its stock is trading at an EV/Sales multiple of 1.5, much lower than its historical average, making it too cheap to ignore near the current levels. 

WELL Health has achieved record revenues in 19 consecutive quarters thanks to the continued growth in its omnichannel patient visits. In addition, WELL Health expects to surpass $900 million in annual revenue by 2024, driven primarily by organic expansion. Moreover, the company is actively pursuing profitable growth strategies, which is driving its cash flows. 

Thanks to its solid organic sales and higher cash flows, WELL Health is growing its market share via accretive acquisitions. Besides, the company’s investments in artificial intelligence technology will help develop new products, which will accelerate growth. 

Dollarama

Dollarama (TSX:DOL) is a low-volatility stock offering high growth. Dollarama remains relatively immune to wild market swings thanks to its defensive business model. Moreover, Dollarama stock has consistently outperformed the broader markets with its gains. For instance, DOL stock has grown at an average annualized rate of over 24% in the past five years, delivering a total return of more than 196%. 

Dollarama is Canada’s leading value retailer, selling products at low fixed prices. Thanks to its value offering, it drives value-oriented consumers to its stores. Moreover, its extensive store network and focus on reducing merchandise costs support its top- and bottom-line growth. The company has been growing its top and bottom lines at a double-digit rate. Further, it is returning cash to its shareholders through higher dividend payments. 

Overall, Dollarama is a top stock for investors seeking growth, stability, and income. 

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 recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

More on Investing

Concept of multiple streams of income
Dividend Stocks

TFSA Passive Income: 2 Top TSX Stocks Still Offering Attractive Dividend Yields

These top TSX dividend stocks still look cheap.

Read more »

Pumpjack in Alberta Canada
Dividend Stocks

RRSP: 3 Canadian Dividend Stocks to Own for Decades

These TSX stocks have long track records of dividend growth.

Read more »

data center server racks glow with light
Dividend Stocks

Is Brookfield Infrastructure Partners a Buy for Its 4.7% Yield?

Brookfield Infrastructure Partners offers a unique opportunity to invest in a diversified portfolio of high-quality infrastructure assets.

Read more »

Dividend Stocks

The Best Canadian Stocks to Buy With $5,000 Right Now

These top stocks have tremendous growth potential and are trading off their highs, making them some of the best Canadian…

Read more »

young people stare at smartphones
Dividend Stocks

Is Rogers Stock a Buy for its 3.8% Dividend Yield?

With a dividend yield that's much lower than two of its main peers, is Rogers stock still a good investment…

Read more »

Oil industry worker works in oilfield
Energy Stocks

A Few Years From Now, You’ll Wish You Had Bought This Undervalued Stock

Undervalued and modestly discounted stocks are cherished, but when the discount becomes too steep, and there are no substantial signs…

Read more »

chip with the letters "AI" on it
Investing

How to Invest in Canadian AI Stocks for Long-Term Gains

Here are the best ways Canadian investors can gain exposure to AI stocks.

Read more »

rain rolls off a protective umbrella in a rainstorm
Stocks for Beginners

Safe Stocks to Buy in Canada for October

Here are two of the most stable Canadian stocks to buy this month.

Read more »