Investing in Canadian stocks under $50 can feel a bit like finding hidden gems. With $700 to allocate, it’s important to find companies that not only have strong track records but also a clear path to future growth. Right now, three names stand out as no-brainer buys. They are Hydro One (TSX:H), Lightspeed Commerce (TSX:LSPD), and CES Energy Solutions (TSX:CEU). These Canadian stocks offer a nice balance between stability, innovation, and income. This is exactly what you want when stretching every dollar.
Hydro One
Starting with Hydro One, it’s about as steady as they come. Hydro One handles 98% of Ontario’s high-voltage electricity transmission and serves about 1.5 million customers. In its most recent fourth-quarter 2024 earnings report, Hydro One posted net income of $200 million, up from $181 million the year before. Earnings per share (EPS) came in at $0.33, a nice jump from $0.30. Revenue was also higher thanks to approved rate increases, and Hydro One kept a tight lid on operating expenses.
This combination of reliable revenue, modest growth, and careful spending is exactly what makes Hydro One such a reliable stock. Add in a dividend that currently yields around 2.5%, and you have a perfect utility play for anyone who values steady income along with slow and steady capital appreciation.
Lightspeed Commerce
Turning to a more growth-oriented story, Lightspeed Commerce is another top Canadian stock. Based in Montreal, Lightspeed offers point-of-sale and e-commerce software for retail, hospitality, and golf businesses around the world. In its third quarter of fiscal 2025, Lightspeed reported revenue of $403.1 million, reflecting strong demand for its Unified Payments and point-of-sale systems. EPS came in at $0.17, beating estimates of $0.15.
Yes, the Canadian stock is still operating at a net loss over the trailing 12 months, but the story here is about building scale. Lightspeed has been growing its customer base while improving its take rate. This measures the portion of transactions processed through its payment platform. With $702 million in cash and no significant debt due until 2029, Lightspeed has the balance sheet strength to ride out any economic bumps and continue expanding. Its next earnings are set to come out on May 22, 2025 and could offer even more proof that the turnaround plan is gaining traction.
CES
Finally, CES Energy Solutions brings a unique twist to this trio. It’s not a traditional oil and gas stock. Instead, CES supplies specialized consumable chemical solutions used in drilling, production, and other stages of oil and gas operations. In the fourth quarter of 2024, CES posted revenue of $605.4 million, up 9% from the year before. Even better, the Canadian stock achieved record quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $103.2 million, with a healthy margin of 17%.
CES also announced a dividend increase to $0.043 per share, showing its confidence in future cash flow. Unlike some energy companies that are hostage to swings in oil prices, CES focuses more on steady, recurring sales to producers. This helps shield it from the worst of commodity cycles. It has a strong presence across North America, including key U.S. shale basins. It also continues to invest in innovation, particularly around greener chemical formulations. CES feels like a smart way to get exposure to the energy sector without taking on outsized risk.
Bottom line
If I had $700 to invest right now, I would split it roughly evenly between these three stocks. Hydro One would give me reliable income and lower volatility. Lightspeed would offer a shot at significant capital growth as it scales its business and heads toward profitability. CES Energy Solutions would add a nice mix of income and exposure to the energy sector, but without betting everything on oil prices staying high.
Each of these Canadian stocks brings something different to the table, but what they all share is a strong case for outperforming over the next few years. With prices still well under $50, it’s a rare opportunity to build a solid, diversified foundation without breaking the bank. It’s the kind of investment plan that could really pay off over the long haul, all while keeping your portfolio balanced and a little bit more exciting.
