If you want to see your money grow by investing in stocks, you don’t necessarily need a large sum to get started. Even with an investment of as little as $2,000, you can buy some high-quality stocks that offer both stability and long-term strong growth potential.
The main challenge is finding the best Canadian stocks that fit your risk appetite and match your investment goals. To find such stocks, you should ideally focus on stocks with a solid growth outlook and the potential to yield strong returns over time. By choosing fundamentally strong stocks, even your little investment could grow significantly in the years to come, setting you on the path to financial prosperity.
In this article, I’ll highlight two of the best Canadian stocks that I think are worth considering for a $2,000 investment right now.
Air Canada stock
Despite a record rally in the TSX Composite in recent quarters, Air Canada (TSX:AC) hasn’t seen much appreciation, making it an undervalued long-term buy. The shares of the Saint Laurent-based airline company currently trade at $15.57 per share with a market cap of $5.6 billion after witnessing around 17% value erosion so far in 2024.
In four quarters ended in June 2024, the Canadian flag carrier’s revenue has gone up by 9.6% YoY (year over year) to $22.3 billion as it continues to benefit from surging air travel demand in the post-pandemic era, operational expansion, and increase in capacity. These positive factors, coupled with its improved operational efficiency, have led to a 106% YoY increase in its adjusted earnings in the last year to $4 per share.
Moreover, Air Canada continues to expand its global network with new services to many popular international destinations expected to start soon, which will help diversify its operations further and make its services more appealing to international travelers. The largest Canadian passenger airline company’s recent focus on fleet modernization is also likely to help it improve profitability in the long run and drive its share prices higher.
BlackBerry stock
BlackBerry (TSX:BB) could be another attractive Canadian stock for investors looking to benefit from emerging market trends. This Waterloo-headquartered enterprise software company currently has a market cap of $2 billion as its stock trades at $3.32 per share with 29% year-to-date losses.
In the first quarter of its fiscal year 2025 (ended in May), BlackBerry posted revenue of $144 million, exceeding its previously provided guidance. Its IoT (Internet of Things) segment’s revenue rose 18% YoY last quarter to $53 million with a stronger gross margin of around 81%. A large portion of the company’s IoT segment growth in recent quarters could be attributed to the growing popularity of BlackBerry QNX, a machine learning and artificial intelligence-based intelligent vehicle data platform.
Interestingly, BlackBerry remains on track with its plan to operationally separate its IoT and cybersecurity businesses, which are likely to unlock further value by allowing each segment to focus more on its market and core strengths. Considering that, the recent declines in BB stock make it really attractive to buy for the long term.
