3 TSX Stocks Under $20 That Are Screaming Buys

These under $20 stocks have the potential to deliver solid returns, thanks to their solid business models and long-term growth prospects.

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You don’t need a fortune to start building a strong portfolio. Many fundamentally strong companies on the TSX are still trading at prices under $20, making them accessible even to investors with a modest budget. Despite their lower share prices, some of these TSX stocks have the potential to deliver returns well above the market average, thanks to their solid business models and long-term growth prospects.

With this backdrop, here are three under $20 Canadian stocks that are screaming buys. But before I discuss the stocks, note that a low share price alone isn’t a reason to buy. The real opportunity lies in finding quality companies whose future looks far more valuable than the price tag on their shares today.

CES Energy Solutions stock

CES Energy Solutions (TSX:CEU) is an attractive long-term stock trading under $20. The company provides advanced consumable fluids and specialty chemicals, playing a key role in energy production. With a presence across all major U.S. basins, a vertically integrated chemicals business, and a counter-cyclical balance sheet, CES combines financial stability with operational strength, enabling it to consistently generate healthy cash flows across all market conditions.

The company is strategically positioned to benefit from the uptick in drilling activity across North America. As extraction methods grow increasingly complex, demand for CES’s specialized chemical solutions is expected to rise, driven by the need for technologies that enhance efficiency and maximize production. Its capital-light, asset-efficient approach allows the company to maintain strong free cash flow, giving it the flexibility to reinvest in growth while also rewarding shareholders.

Although CES shares have fallen more than 25% this year amid geopolitical tensions and tariff concerns, this dip presents a compelling entry point. With its solid positioning in the oilfield space, growing service intensity, and strong demand prospects, CES appears well-placed to rebound, delivering both revenue growth and expanded free cash flow in the years ahead.

5N Plus stock

5N Plus (TSX:VNP) is another high-quality under $20 stock to consider now. The company offers high-performance materials and specialty semiconductors, which are critical components powering some of the most promising industries. From space exploration and renewable energy to advanced medical imaging and security applications, 5N Plus is embedded in markets that are expanding rapidly and shaping the future.

Strong demand for its products has translated into robust financial performance and a steadily growing backlog of orders. This strength has been reflected in its share price, which has surged over 107% since the start of the year and delivered a staggering 714% gain over the past three years.

The company is expanding production capacity and pursuing strategic acquisitions to accelerate growth. Moreover, its positioning as a leading supplier of ultra-high-purity semiconductor materials provides a competitive edge and positions it well to capitalize on demand.

In short, 5N Plus’s growing manufacturing capabilities, focus on high-margin products, and solid demand position it well to deliver significant returns.

SECURE Waste Infrastructure stock

SECURE Waste Infrastructure (TSX:SES) is another compelling long-term pick trading under $20. It is likely to benefit from growing demand for its waste management services and energy infrastructure. Its core network continues to see steady industrial and production-related waste volumes, reflecting resilience even in uncertain economic conditions.

While its metals recycling arm has faced headwinds from softer demand and tariffs, the company has adapted by redirecting ferrous scrap to U.S. markets where tariffs don’t apply and increasing its focus on non-ferrous materials with stronger fundamentals. This strategic agility, paired with a solid balance sheet and strong supply chain relationships, positions SECURE to capture upside as markets recover.

Looking ahead, rising oil and gas production and improved global market access are set to drive higher waste byproduct volumes requiring specialized treatment. This will support the demand for the company’s services.

Further, its high-barrier asset network adds both expansion potential and cyclical resilience, while tightening environmental regulations promise consistent waste volumes. Supported by these structural tailwinds, SECURE is well-placed to deliver steady volume growth and robust earnings, which will support its share price.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends CES Energy Solutions and Secure Waste Infrastructure. The Motley Fool has a disclosure policy.

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