Investing in top-quality TSX stocks doesn’t always mean needing a lot of money. Even with as little as $20, investors can build a portfolio of fundamentally strong stocks that offer solid potential for long-term growth.
Against this backdrop, here are the top three bargain TSX stocks you can grab under $20 with promising long-term growth prospects.
Source: Getty Images
TSX stock #1
CES Energy Solutions (TSX:CEU) is a compelling under-$20 TSX stock offering solid long-term growth potential. The company supplies specialized chemicals for oil and gas extraction and operates across all major U.S. basins. This is a key advantage, as North American drilling activity is expected to continue rising in the long term, providing a solid growth opportunity for the company.
As producers adopt more complex methods, such as high-intensity fracturing and longer laterals, demand for CES’s high-performance, consumable chemicals is expected to continue expanding. Moreover, CES will continue to benefit from its capex and asset-light model, which enables it to generate strong free cash flow. CES Energy’s production chemicals help optimize well performance, providing the company with a steady, recurring revenue stream and enhancing its financial stability.
Despite global uncertainty, its vertically integrated structure and flexible supply chain ensure operational resilience and margin stability. CES stock has dropped about 33% on macro concerns. While the stock has fallen significantly in value, CES’s fundamentals remain strong, making it a bargain at its current market price.
TSX stock #2
WELL Health Technologies (TSX:WELL) is another attractive investment trading under $20. The digital healthcare company continues to deliver solid revenue growth and is profitable. Despite its steady growth, the stock has lost substantial value year-to-date, making it an attractive bargain near its current market price.
WELL Health’s Canadian businesses, including Canadian clinics and WELLSTAR, continue to drive its growth. Furthermore, its focus on strategic acquisitions has expanded its technological capabilities and opened up new avenues for growth.
WELL Health’s business will continue to gain from the steady demand for its omnichannel patient care services. Meanwhile, accretive acquisitions and its focus on operational efficiency will drive its top and bottom lines. Furthermore, the company is well-positioned to leverage its market leadership in Canada, driven by its growing share in the clinical market. Moreover, its strong balance sheet, focus on debt reduction, and efforts to minimize share dilution are all positives, making it a solid investment bet.
TSX stock #3
5N Plus (TSX:VNP) stock could be another valuable addition to your portfolio. While it is currently trading under $20, it has solid long-term growth prospects. Its stock has jumped over 406% in three years. Moreover, it has more room for further growth.
The company offers specialty semiconductors and performance materials. It supplies its products to several high-growth industries, including terrestrial renewable energy, space solar power, health and pharma, technical materials, and imaging and sensing, which provides a solid base for multi-year growth. It also supplies ultra-high-purity semiconductor compounds outside China, giving it a competitive edge.
5N Plus’ performance materials segment consistently generates higher sales and predictable cash flows, supporting its future growth and adding stability. Further, the demand for renewable energy solutions and space-based solar power technologies is growing and expected to drive its revenues in future years. Moreover, applications of its offerings in medical imaging and sensing bode well for growth. In addition, 5N Plus’ focus on long-term customer partnerships and product expansion will support its future growth.
