Investing in growth stocks and building a robust investment portfolio doesn’t require substantial funds. You can begin with as little as $30 and gradually move towards your financial objectives. The key is to buy and hold TSX stocks with solid fundamentals and promising long-term growth potential. You can accumulate significant wealth over time by consistently buying and holding these stocks, even with modest investments.
Against this background, let’s look at three Canadian growth stars trading under $30 that can help you generate notable returns over time.
WELL Health stock
Investors looking for growth stocks under $30 could consider WELL Health Technologies (TSX:WELL). This digital healthcare company is growing rapidly. Moreover, the momentum in its business will likely be sustained, driving its share price higher.
WELL Health recently achieved a significant milestone, surpassing $1 billion in annualized revenue run rate one quarter ahead of schedule. This reflects the solid demand for its offerings, primarily Canadian Patient Services. Moreover, the company also benefitted from its strategic acquisitions that have bolstered its top line.
The digital healthcare company is well-positioned to capitalize on several growth drivers. WELL Health will likely benefit from the increasing number of omnichannel patient visits to its platform and the expansion of its clinical offerings. Additionally, its strategy of leveraging mergers and acquisitions to enhance its clinical and digital assets portfolio further strengthens its market position.
WELL Health’s extensive clinic network, focus on proprietary software, and artificial intelligence (AI)-powered solutions provide a strong foundation for sustainable growth. Moreover, the company is targeting opportunities in its high-margin affiliate clinic licensing business, which will support its growth. The company is focused on boosting cash flows and reducing debt, which will enhance its financial stability and support its share price.
SECURE Energy Services stock
SECURE Energy Services (TSX:SES), a leading waste management and energy infrastructure company, could be another solid bet under $30. The company’s resilient business model and solid free cash flow support its stock price and dividend payments.
Its portfolio includes assets that operate in markets with high entry barriers and are difficult to replicate, giving SECURE Energy a competitive advantage. Moreover, its stable revenue streams from production-related activities and recurring waste services provide stability. Further, its partnerships with leading energy and industrial players bolster its revenue base, enhancing resilience.
SECURE Energy focuses on long-term projects backed by contracts that ensure reliable volumes and predictable cash flows. This strategy guarantees solid returns while supporting initiatives to expand margins and reduce debt, creating room for growth.
Overall, solid demand, strategic acquisitions, margin expansion, and the company’s solid market position imply that the company could deliver strong cash flows, which will support its share price.
5N Plus
5N Plus (TSX:VNP) is another compelling long-term stock trading under $30. The company produces specialty semiconductors and performance materials. Moreover, it commands leadership in most markets it serves, which supports its growth. Moreover, 5N Plus’s products have applications in several high-growth industries that provide a solid base for multi-year growth.
The company is a top supplier of ultra-high-purity semiconductor compounds outside China. This provides significant growth opportunities. Moreover, long-term customer partnerships ensure a steady revenue stream for the company.
Looking ahead, demand for renewable energy solutions and space-based solar power technologies will support its financials. Moreover, applications of its offerings in medical imaging and sensing further enhance its growth outlook.
The company’s performance materials segment generates high profitability and predictable cash flows, contributing to the company’s financial stability. Moreover, 5N Plus is eyeing growth opportunities through product expansion and partnerships. All these factors will likely push 5N Plus stock higher in the long run.
