Investing in equity markets is an excellent strategy to create wealth. You don’t need a substantial amount to start your investment journey. Small but regular investments would help investors build wealth over the long run. Meanwhile, the following two stocks offer healthy growth prospects and are trading below $20, making them ideal buys for long-term investors.
Savaria
Savaria (TSX:SIS) offers accessibility solutions to people with disabilities with its production facilities spread across the globe. The company also markets its products worldwide through its dealer networks and direct sales offices in North America, Europe, Australia, and China. The aging population’s growth and rising income levels could drive the demand for accessibility solutions, thereby creating a long-term growth potential for the company.
Moreover, Savaria is focusing on the development of innovative products. It has also made structural improvements, which could enhance its production capacity, increase operational efficiencies, and streamline procurement, thereby generating substantial cost savings. The company also acquired Western Elevator, which generated $7.5 million in revenue last year. The acquisition would strengthen Savaria’s position in the luxury residential elevator market.
On the back of these initiatives, the company’s management is predicting its 2025 revenue to be around $925 million, representing 6.6% of year-over-year growth. Also, the management expects its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin to come between 17% and 20%, compared to 18.6% in 2024. Additionally, Savaria currently offers a monthly dividend payout of $0.045/share, with its forward dividend yield at 2.76% as of the July 30 closing price. Also, it trades at a reasonable NTM (next-12-month) price-to-sales multiple of 1.5, making it an excellent buy.
WELL Health Technologies
The second under-$20 Canadian stock that I am optimistic about is WELL Health Technologies (TSX:WELL), which offers products and services to aid healthcare professionals in delivering positive patient outcomes. Meanwhile, the growing popularity of virtual healthcare services and the digitization of clinical procedures have created a long-term growth potential for the company. It had 1.6 million patient visits during the first quarter, representing a 23% increase from the previous year.
Further, WELL Health is investing in artificial intelligence to develop innovative products and features that can strengthen its position in the virtual healthcare and clinical documentation services. Along with organic growth, the company is continuing with its inorganic expansions. Earlier this month, it acquired two clinics, which can generate around $12 million of annualized revenue and approximately $3 million in adjusted EBITDA. The company’s acquisition pipeline consists of 124 clinics, which can add $370 million of annual revenue and $50 million of adjusted EBITDA.
Amid these healthy growth prospects, WELL Health’s management projects its 2025 revenue to come between $1.35 billion and $1.40 billion, excluding the impact of Circle Medical’s deferred revenue adjustments. The midpoint of the management’s revenue guidance represents a year-over-year increase of 49.5%. Meanwhile, the management also expects its adjusted EBITDA to come between $140 million and $160 million, with the midpoint of the guidance representing an over 18% increase from 2024.
Additionally, WELL Health announced a new share-repurchasing plan in May, where it will repurchase around 6.3 million shares, representing 2.5% of the outstanding shares, over the next 12 months. Along with these factors, its attractive NTM price-to-earnings multiple of 10.6 makes it an excellent long-term buy.
