Investors can build wealth by staying invested in equity markets over the long term. You don’t need a large initial amount to get started, and with regular investments, it’s possible to build considerable wealth over time. Meanwhile, investors should consider investing in businesses with solid financials and healthy growth prospects to grow their investments at a healthier rate. Against this backdrop, let’s examine two Canadian stocks that are available for under $20 and have the potential to deliver superior returns over the next five years.
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BlackBerry
Yesterday, BlackBerry (TSX:BB) reported an impressive second-quarter performance for fiscal 2026, beating its guidance. Revenue for the secure communications solutions provider came in at $129.6 million, above its guidance of $115–$125 million. Year-over-year, its revenue grew by 2.7% amid strong performance from its QNX and licensing segments. Although the revenue from its secure communication business fell 9.9% to $59.9 million, it was higher than its internal guidance of $54 –$59 million. The company’s gross profits grew 9%, while its gross margins expanded by 430 basis points to 74.5%.
Supported by its topline growth, expansion of gross margins, and lower operating expenses, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 71.5%. Also, its EBITDA margin improved from 12% to 20%. Meanwhile, the adjusted EPS (earnings per share) came in at $0.04, representing a substantial improvement from a breakeven point in the previous year’s quarter. The company closed the quarter with $363.5 million in cash, cash equivalents, and short- and long-term investments, leaving it well-positioned to support its growth initiatives.
Following its solid second-quarter performance, BlackBerry’s management has raised its 2025 guidance. Although the midpoint of its revenue guidance represents a 0.9% decline from its 2024 revenue, the midpoint of its adjusted EPS guidance of $0.13 represents a substantial improvement from $0.02 in the previous year. Moreover, the company’s long-term growth outlook appears strong, supported by rising vehicle complexities, increasing demand for computing power in automobiles, and heightened focus on safety-critical domains.
Notably, after selling its Cylance endpoint security assets earlier this year, the company is relying on its BlackBerry UEM, BlackBerry AtHoc, and BlackBerry SecuSUITE to strengthen its position in the secure communications segment. Its solid customer base and higher customer retention rate will provide stability to its financials. With improving operating margins and robust growth prospects, BlackBerry is well-positioned to generate strong returns over the next five years.
WELL Health Technologies
Another under-$20 stock that I believe has solid growth potential is WELL Health Technologies (TSX:WELL), which supports healthcare professionals in achieving positive patient outcomes. The growing adoption of virtual services and the digitization of clinical procedures have created long-term growth potential for the company. Meanwhile, the healthtech is also expanding its product offerings by introducing innovative artificial intelligence-powered products to meet the needs of its customers.
Along with these organic growth initiatives, WELL Health also focuses on strategic acquisitions. As of August 14, it has acquired 14 assets this year and has signed letters of intent to acquire 15 more assets that can contribute $134 million to its annualized revenue. Despite its healthy growth prospects, WELL stock currently trades at an attractive NTM (next 12 months) price-to-earnings multiple of 12, making it an excellent buy at these levels.
