Investing in the stock market doesn’t always demand deep pockets. You can start with as little as $50 to create a solid long-term portfolio and generate notable returns over time. The key is patience and making smart choices. By picking companies with solid fundamentals and promising growth potential, your small investment can grow significantly over the years.
With that in mind, let’s explore three no-brainer Canadian stocks trading under $50 that can help investors earn solid returns over the long term.
Aritzia
Aritzia (TSX: ATZ) is a compelling stock trading under $50. This luxury clothing company is known for delivering above-average growth, which drives its share price higher. For instance, Aritzia stock has grown about 174% in the last five years, reflecting double-digit growth in its revenue and adjusted net income during the same period.
The continued growth in its top line and improvement in earnings before interest, taxes, depreciation, and amortization (EBITDA) margin will likely support the uptrend in Aritzia stock. The company expects its net revenue to grow at a compound annual growth rate (CAGR) of 15-17% through fiscal 2027. Aritzia can achieve this growth as it plans to open eight to 10 new boutiques in the U.S. annually through fiscal 2027 and increase its total retail square footage by up to 60%.
Additionally, the clothing retailer’s focus on expanding omnichannel offerings and increasing brand awareness will likely support its growth. Further, its investments in supply chain and technology and productivity savings will likely drive its earnings and share price.
Lightspeed Commerce
Lightspeed Commerce (TSX: LSPD) offers significant value at the current market price. Trading under $50, this omnichannel commerce and digital payments platform provider is under pressure due to macro headwinds. However, the technology company’s fundamentals remain strong, and it is poised to gain from the structural shift toward multichannel selling platforms.
Furthermore, Lightspeed stock is trading too cheap to ignore. Its forward enterprise value-to-sales (EV/sales) ratio of 1.1 is close to an all-time low, providing a solid buying opportunity.
Lightspeed’s products could see higher demand as businesses upgrade their traditional payment systems and invest in advanced technology. Furthermore, Lightspeed’s accretive acquisitions will expand its customer locations and support new product development. Further, it is consistently delivering solid revenues, focusing on improving its unit economics, and driving higher average revenue per user, which will enable it to generate sustainable profitability and drive its share price higher.
WELL Health
WELL Health (TSX: WELL) is an attractive stock near current levels. The combination of its solid growth and low valuation makes it a compelling investment. It is Canada’s leading digital healthcare company and largest owner-operator of outpatient medical clinics. While WELL Health is consistently growing its revenue and earnings, its stock trades at the next 12-month enterprise value-to-sales (EV/sales) multiple of 1.5, which is near an all-time low.
WELL Health’s business is poised to benefit from higher omnichannel patient visits. Moreover, acquisitions will further expand its scale and accelerate its revenue growth. WELL Health also invests in artificial intelligence (AI) technology to develop innovative clinical products to improve healthcare services and drive future growth.
In addition, WELL Health is optimizing its operations to boost organic growth and profitability. It is also making efforts to increase its cash flows, reduce debt, and minimize share dilution, aiming to deliver solid shareholder returns.
