You can start investing in high-quality Canadian stocks even with a modest capital. For instance, shares of many fundamentally strong TSX stocks with solid prospects are trading under $20, making them screaming buys today.
Against this backdrop, here are three under-$20 TSX stocks to buy right now.
Under-$20 stock #1: CES Energy Solutions stock
CES Energy Solutions (TSX:CEU) is a compelling long-term stock trading under $20. The company provides advanced chemical solutions that are essential for oilfields. As North American drilling activity picks up and extraction methods become more complex, CES is well-positioned to meet rising demand for specialized chemicals that boost efficiency and production.
Its capital- and asset-light business, vertically integrated operations, and counter-cyclical balance sheet position it well to generate strong free cash flow. This enables the company to reinvest in growth and enhance shareholder value.
Although geopolitical and trade uncertainty pose challenges, CES will likely benefit from a revenue base heavily weighted toward the U.S., a flexible supply chain, and integrated operations across Canada and the United States. Moreover, with its presence across all major U.S. basins, increasing service intensity, and strong demand trends, CES Energy Solutions is poised to deliver solid growth and attractive returns for investors.
Under-$20 stock #2: 5N Plus
5N Plus (TSX:VNP) provides specialty semiconductors and performance materials. While its stock has surged significantly in the recent past, it still trades below $20 and has considerable upside potential. The company’s products are in high demand across markets with secular demand trends.
The company’s specialty semiconductor segment is particularly well-positioned to benefit from rising demand from terrestrial renewable energy and space-based solar projects. The growing demand for clean energy, powered by artificial intelligence and cloud infrastructure, is creating a strong tailwind for scalable solar solutions, benefiting 5N Plus.
5N Plus’s acquisition of Germany-based AZUR Space and its growing capabilities have strengthened its position in space applications. Further, 5N Plus is expanding its solar cell production capacity, which will help gain share in commercial, civil, and defence markets. Beyond energy, the company’s high-purity materials are essential for medical imaging technologies that reduce radiation exposure, and its Performance Materials segment benefits from strong demand for bismuth-based pharmaceuticals and specialty chemicals. Also, it supplies high-purity materials outside China, which provides a strategic edge amid global trade uncertainties.
With a diversified portfolio, robust supply chain, and exposure to some of the fastest-growing industries, this small-cap stock has the ingredients to deliver outsized returns.
Under-$20 stock #3: Lightspeed
Trading under $20, Lightspeed (TSX:LSPD) stock is too cheap to ignore near the current levels. The cloud-based commerce platform is well-positioned to benefit from the ongoing shift toward omnichannel retail and its recurring revenue model.
Despite recent pressure from macroeconomic uncertainties and its decision to remain public, Lightspeed’s fundamentals remain solid. The Canadian tech company is focusing on high-potential markets, including retail clients in North America and hospitality customers in Europe. Moreover, it is acquiring higher-value clients, which leads to increased adoption of its software modules, boosts transaction volumes, and drives average revenue per user (ARPU) and retention.
Lightspeed is also strategically bundling POS and payments solutions. This has strengthened payment penetration and driven its revenue. Also, the company is expanding its footprint and cross-selling products.
With a large addressable market, rising ARPU, focus on improving operational efficiency, and low valuation, Lightspeed is a compelling stock to buy today.
