2 TSX Stocks Under $20 That Are Absolute Steals

Don’t let the low share prices fool you, as both of these TSX stocks offer real value and long-term upside for patient investors.

Key Points
  • These two quality Canadian stocks, SECURE Waste Infrastructure at about $18 and Air Canada at about $19, look like bargains right now.
  • SECURE has a stable waste and energy business with stable profits and long-term contracts.
  • Despite temporary labour issues, Air Canada’s improving profits and healthy cash generation could help it rebound.

The best thing about long-term Foolish investing is that it gives you the gift of time. Time to let good businesses in your portfolio grow, improve, and reward patient investors. And sometimes, the market temporarily prices some of those reliable businesses so low that it almost feels like a steal.

Today, two TSX-listed stocks are trading well below $20 per share, but their operations, cash flow, and future plans tell a much stronger story than their price suggests. So, if you’re looking to add high-potential names to your portfolio without paying a premium, here are two top TSX stocks under $20 that look too good to ignore right now.

ways to boost income

Source: Getty Images

SECURE Waste Infrastructure stock

SECURE Waste Infrastructure (TSX: SES) is the first TSX-listed business I find undervalued right now because of its stable infrastructure and strong long-term growth plans. This Calgary-based waste management and energy infrastructure firm is currently trading at $18.02 per share with a market cap of about $3.93 billion. At this market price, it also pays a quarterly dividend with an annualized yield of around 2.2%.

SES stock has surged more than 1150% over five years, reflecting the strength of its core infrastructure network. This momentum is also backed by solid volume growth, stable pricing, and continued investments across its network.

In the second quarter of 2025, SECURE posted adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $110 million and net profit of $31 million, which was flat in absolute terms but jumped 17% on a per-share basis due to a 15% reduction in its outstanding shares. That’s because SECURE had repurchased about 7% of its shares by the end of July. Despite short-term headwinds like seasonal softness and U.S. steel tariffs hitting its metals recycling segment, the company still managed to hold the line on profitability.

To boost its long-term outlook, SECURE is investing in produced water processing facilities in the Alberta Montney region, backed by 10-year contracts. In addition, it is upgrading infrastructure, expanding rail capacity, and reopening idle industrial facilities to capture more volumes. With over 80 facilities in Western Canada and North Dakota, strong long-term contracts, and a solid balance sheet, SES stock looks like a rare under-$20 opportunity worth considering on the TSX today.

Air Canada stock

My next pick, Air Canada (TSX: AC), may surprise you, but there’s a lot more going on here than the headlines suggest. Air Canada, the country’s largest passenger airline, is currently trading at $18.91 per share with a market cap of around $5.6 billion. AC stock has risen 16% over the last year, although recent headlines about labour disputes have added volatility. Nevertheless, in the second quarter of 2025, Air Canada delivered $909 million in adjusted EBITDA with a strong 16.1% margin and $895 million in operating cash flow. That was despite softer demand in some areas and rising fuel costs.

While the company has suspended its 2025 guidance due to a temporary flight attendant strike, its long-term strategy looks promising. For example, it’s focusing on expanding high-margin premium services and investing in fleet upgrades that could support long-term efficiency.

With a low debt-to-EBITDA ratio, stable liquidity, and stable operating cash flow, Air Canada deserves higher investor confidence than its current stock price suggests. If the labour challenges don’t show up again, this stock under $20 could sharply bounce back.

Fool contributor Jitendra Parashar has positions in Air Canada. The Motley Fool recommends Air Canada and Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

man looks surprised at investment growth
Stocks for Beginners

Maxed Out Your TFSA? The Account Where Canadian Dividends Are Taxed Less

A taxable account gives eligible Canadian dividends a tax credit, but the gross-up can affect retirement benefits.

Read more »

dreaming of financial success
Dividend Stocks

3 Questions to Ask Before Buying a Dividend Stock

Buying a dividend stock? Here are three questions to help you look beyond the yield, with examples from Enbridge, Fortis…

Read more »

Hourglass and stock price chart
Stocks for Beginners

Aritzia Jumped 20% in a Day: What It Says About the Canadian Consumer

Aritzia's rally reflects strong demand and U.S. expansion, while tariff refunds and a higher share price deserve separate attention.

Read more »

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Dividend Stocks

Buying Your First Home? The $8,000 FHSA Deduction Most Renters Miss

An eligible renter's $8,000 FHSA contribution can save $2,400 at a 30% tax rate, with the purchase date guiding investments.

Read more »

industrial worker on construction site laying sealant for waterproofing cement
Dividend Stocks

Is Your Side Hustle a Business or a Hobby? The CRA Cares

Understand if your side hustle is a business or hobby. If your goal is to earn side income, you should…

Read more »

shopper checks her receipt
Dividend Stocks

The OAS Clawback Starts at $95,323: TFSA Withdrawals Don’t Count Toward It

The 2026 OAS threshold makes withdrawal planning valuable, with eligible TFSA cash avoiding an income increase that can trigger recovery.

Read more »

Agricultural harvesting at the last light of day, aerial view.
Dividend Stocks

Ottawa Just Put $1 Billion Into Food Security: This Fertilizer Giant Feeds Off It

Ottawa’s food-security fund could support agriculture, but Nutrien’s investment case depends on farm economics and company cash flow.

Read more »

dividends can compound over time
Dividend Stocks

I’d Rather Own SmartCentres at 98.1% Occupancy Than Chase a Bigger Yield

Before you chase a bigger yield, consider SmartCentres’ 98.1% occupancy, 6.9% yield, and the cash flow supporting its monthly distribution.

Read more »