The Best Canadian Stocks to Buy for Less Than $20 a Share

These three under-$20 Canadian stocks could deliver superior returns in the long run.

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

Image source: Getty Images

The equity market could deliver superior returns in the long run. Besides, you don’t require huge capital to start your investment journey. Small but regular investments in quality stocks can create substantial wealth over the long term. To that end, here are three top Canadian stocks that you can buy for under $20.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) is a digital healthcare company that leverages technology to empower healthcare professionals to achieve positive patient outcomes. After a challenging 12 months, the company has witnessed healthy buying over the last few weeks, with its stock price rising around 34% compared to its April lows. Given its healthy growth potential and attractive valuation, I expect the uptrend to continue.

Digitization of patient records, growing adoption of telehealthcare services, and clinics opting for administrative tools to streamline their operations have created multi-year growth potential for WELL Health. Besides, the company is investing in artificial intelligence (AI) to develop new innovative products and enhance the features of its existing products. So, its long-term growth prospects look healthy.

Meanwhile, WELL Health’s management expects its 2024 revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) to grow by 25% and 12.4%, respectively. Despite its healthy growth prospects, the company trades at 1.2 times its book value, making it an excellent buy.

Lightspeed Commerce

Lightspeed Commerce (TSX:LSPD) is another under-$20 stock I am bullish on due to its improving profitability, growth potential, and cheaper valuation. The omnichannel commerce company’s top line grew 25% in the March-end quarter while its net losses contracted from $74.5 million to $32.5 million. However, removing special items, its adjusted net income stood at $8.5 million compared to an adjusted net loss of $0.4 million in the previous year’s quarter.

Meanwhile, the company’s Unified POS (point of sales) and payments offering has expanded the adoption of its payment platform, with its GPV (gross processing value) increasing by 75% to $6.6 billion. Besides, the company’s new product launches and geographical expansion continue to expand its customer base while driving its ARPU (average revenue per user). The increased transition towards higher gross transaction value customer locations could also support its financial growth.

Further, Lightspeed has slashed 10% of its workforce and is exploring several cost-cutting initiatives to improve its profitability. Besides, it also trades at an attractive NTM (next 12 months) price-to-earnings multiple of 1.6, making it an attractive buy.


With its widespread manufacturing centres and distribution network, Savaria (TSX:SIS) offers its products across 55 countries. The accessibility solutions provider has grown its top line at a CAGR (compound annual growth rate) of 27% over the last 10 years driven by organic growth and strategic acquisitions. Besides, its adjusted EPS (earnings per share) has increased at an annualized rate of 11% during this period.

Meanwhile, I expect the uptrend to continue amid an expanding addressable market due to its growing aging population and rising income levels. The company has adopted the “Savaria One” initiative, which would help it expand its market share, develop innovative products, and achieve price optimization. Besides, the company is also focusing on streamlining its procurement and supply chain, which could improve productivity. Savaria offers a monthly dividend of $0.0433/share and trades at 1.4 times projected sales for the next four quarters.

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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

More on Tech Stocks

Man data analyze
Tech Stocks

Is Shopify Stock’s Growth Sustainable?

There's a reason Shopify stock (TSX:SHOP) has been getting analyst upgrades, and investors should be paying attention.

Read more »

Shopping and e-commerce
Tech Stocks

3 Reasons to Buy Shopify Stock Like There’s No Tomorrow

Shopify (TSX:SHOP) stock jumped in share price from a stellar upgrade, but more is certainly on the way for the…

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

Check Out This Soaring Stock, Up 29% From 52-Week Lows, With More Gains Likely to Come

This top tech stock is now up 29% from lows, but still down 12% in the last year. And it…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Up 50% From its 52-Week Low, Is Shopify Stock Still a Buy?

Shopify (TSX:SHOP) stock has been both a winner and loser on the TSX, but after a recent upgrade, could it…

Read more »

Dollar symbol and Canadian flag on keyboard
Tech Stocks

2 Canadian Stocks to Watch While They’re Still Dirt Cheap

These two Canadian stocks offer ample opportunities as the world shifts into not just AI but cybersecurity needs.

Read more »

A stock price graph showing growth over time
Tech Stocks

1 Hidden Catalyst That Could Ignite Dye & Durham Stock 

Dye & Durham stock surged more than 15% in the last two weeks. What is igniting the growth after a…

Read more »

a person searches for information on the internet
Tech Stocks

Before You Buy Nvidia: Here’s An AI Stock I’d Buy First 

Nvidia is the first stock that comes to your mind for AI. However, consider diversifying your AI stocks across the…

Read more »

edit Woman calculating figures next to a laptop
Tech Stocks

How to Buy UiPath Stock in Canada

UiPath is a beaten-down AI stock that trades at a massive discount to its earnings growth. Is the tech stock…

Read more »