Are you thinking of starting to invest in the stock market but are worried you don’t have the kind of money that can actually spell success for you? Contrary to what many might believe, investing in TSX stocks and becoming successful doesn’t require a massive amount to begin with. Even when you have a smaller budget, you can begin building wealth by investing in high-quality Canadian stocks.
Ideally, you should go for shares of fundamentally strong companies with solid growth prospects. The TSX boasts several high-quality stocks that trade for under $20. If you have been on the hunt for bargains that can deliver substantial returns in the long run, here are two you should have on your radar.
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5N Plus
5N Plus Inc. (TSX: VNP) is a $1.47 billion market-cap company that operates in a niche, serving several global industries. The company is a leading producer of specialty semiconductors and performance materials. 5N+ is a low-priced stock that trades for $16.77 per share at the time of this writing. This year has seen VNP stock surge significantly. At current levels, it is up by over 230% from its 52-week low.
Despite the massive rally, the stock is well-positioned to deliver further growth in the coming years. The products it offers have applications across several high-growth industries, and the company is expanding rapidly into more markets. Between its significant backlog of orders and strong predicted demand, its current share price makes it too attractive to ignore.
CES Energy Solutions
CES Energy Solutions Corp. (TSX: CEU) is another attractive stock to consider adding to your self-directed portfolio if you’re on the hunt for a bargain. The $1.99 billion market-cap company engages in providing consumable chemical solutions throughout the life-cycle of the oilfield. The company has a vertically integrated chemicals business with a presence across all the major U.S.-based basins.
Drilling activities are increasing across North America, which will, in turn, benefit the company. The demand for specialized chemical solutions offered by CES means there is plenty of growth to come for the company. As of this writing, CES Energy Solutions stock trades for $9.07 per share. Up by 62.25% from its 52-week low, the stock is actually down by 11% from its 52-week high.
As tariff concerns and geopolitical tensions eventually ease up, this dip can be an excellent entry point for investors seeking immediate upside potential in their self-directed investment portfolios.
Foolish takeaway
When investing in the stock market, it’s important to remember that it is inherently risky. No matter how solid the underlying business is, any stock can experience downturns due to various possible factors. The key to success is identifying the kind of companies that can weather the storm and emerge stronger on the other side to deliver sustainable wealth growth.
Investors with a solid long-term strategy know better than to let short-term volatility control their decisions. Staying invested in high-quality companies despite near-term downturns can help you set yourself up for plenty of success as an investor.
Against this backdrop, VNP stock and CES stock can be excellent holdings to consider.
