Investing in lower-priced stocks that trade at an attractive valuation should help Canadians benefit from outsized gains over time. In this article, I have identified two top TSX stocks that trade under $20, which are worth buying now.
Source: Getty Images
Is this TSX mining stock a good buy?
Valued at a market cap of $7.7 billion, New Gold (TSX:NGD) is engaged in the development and operation of mineral properties in Canada. New Gold, currently priced at $9.75 per share, explores for gold, silver, and copper deposits.
New Gold posted impressive third-quarter results, with consolidated production reaching approximately 115,200 ounces of gold and 12 million pounds of copper, while generating a record quarterly free cash flow of US$205 million.
The Canadian miner demonstrated strong operational momentum as all-in sustaining costs dropped substantially from US$1,391 per ounce in the second quarter to US$966 per ounce, with further reductions expected in the fourth quarter. The company achieved an impressive all-in sustaining cost margin of US$2,492 per ounce with average realized gold prices hitting US$3,458.
Outperformance
Rainy River delivered a standout performance, achieving record quarterly production of over 100,000 ounces of gold, a 63% increase compared to the prior quarter. The operation generated US$183 million in quarterly free cash flow as the mill processed higher-grade open-pit material while maintaining a throughput of above 25,100 tonnes per day.
All-in sustaining costs at Rainy River improved 39% to US$1,043 per ounce as the mine benefits from processing Phase 4 open-pit material. Management now expects full-year gold production to exceed the midpoint of guidance, ranging from 265,000 to 295,000 ounces.
New Afton’s B3 cave continued outperforming expectations by contributing approximately 4,300 tonnes per day during the quarter, before production rates declined to around 1,500 tonnes per day.
The B3 cave now appears set to exhaust in mid-fourth quarter rather than the previously planned April depletion. The C-Zone block cave construction has advanced to 79% completion and remains on track to ramp up to its full processing capacity of roughly 16,000 tonnes per day, beginning in 2026.
New Gold strengthened its balance sheet by repaying US$260 million in debt during the quarter, including the full US$150 million credit facility drawdown used to fund the New Afton buyback transaction, which was completed one quarter ahead of schedule.
It ended September with US$123 million in cash and a total liquidity of US$500 million, while projecting approximately US$1.8 billion in free cash flow generation through 2027, using conservative metal price assumptions.
The TSX mining stock has already returned 175% to shareholders over the past year. Despite its market-thumping returns, New Gold trades at a reasonable valuation in 2025. Given consensus price targets, New Gold stock trades at a 55% discount in November 2025.
Is this TSX tech stock undervalued?
Valued at a market cap of $2.6 billion, Lightspeed Commerce (TSX:LSPD) stock trades at $19 per share. The fintech company sells cloud-based software subscriptions and payments solutions for retailers, restaurants, golf course operators, and other businesses.
Down 88% from all-time highs, LSPD stock has underperformed the broader markets over the past few years due to its slowing growth rates and negative profit margins.
Analysts tracking the tech stock forecast revenue to increase from US$1.08 billion in fiscal 2025 (ended in March) to US$1.60 billion in fiscal 2029.
During this period, adjusted earnings are forecast to increase from US$0.16 per share to US$1.14 per share. If LSPD is priced at 20 times forward earnings, which is a reasonable valuation, it could gain close to 70% within the next three years.
