If You Have $25 to Invest, You Have 3 Great Stocks to Choose From

Backed by strong business fundamentals, robust growth prospects, and attractive valuations, these three under-$25 stocks are well-positioned to generate impressive returns over the next three years.

Key Points
  • Lightspeed Commerce, 5N Plus, and Savaria are under-$25 Canadian stocks with strong growth potential and solid financial performances.
  • These companies leverage innovative strategies and market expansion to offer compelling long-term investment opportunities.

With minimal investment requirements and lower transaction costs, investing in equity markets has become increasingly convenient and cost-effective. However, investors should remain cautious when selecting stocks. Against this backdrop, here are three Canadian stocks trading below $25 that offer compelling buying opportunities thanks to their solid financial performances and strong growth prospects.

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Lightspeed Commerce

Earlier this month, Lightspeed Commerce (TSX: LSPD) delivered a strong second-quarter performance, beating its internal guidance. Revenue grew 15%, driven by a 17% increase in transaction-based revenue and 9% growth in subscription revenue. The company also expanded its customer base and grew its average revenue per user.

Meanwhile, Lightspeed’s adjusted EPS (earnings per share) rose 23.1% to $0.16, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 52.1% to $21.3 million. It also generated $18 million in free cash flow and ended the quarter with $462.5 million in cash and cash equivalents, giving it solid liquidity to fund growth.

Looking ahead, broader adoption of omnichannel selling, the rollout of new AI (artificial intelligence)-powered products, deeper penetration of its payment solutions, and ongoing geographic expansion are poised to fuel Lightspeed’s next phase of growth. The company is also executing cost-reduction initiatives — including the use of AI to streamline support and service delivery—strengthening efficiency and profitability. Despite these advantages, Lightspeed still trades at an attractive NTM (next-12-month) price-to-earnings multiple of 18.6, making it a compelling buy.

5N Plus

Another under-$25 Canadian stock I am bullish on is 5N Plus (TSX: VNP), which produces specialty semiconductors and performance materials. Supported by its impressive quarterly results and exposure to high-growth markets, the company has delivered returns of over 170% this year. Despite these impressive returns, the company’s valuation remains reasonable, with its NTM price-to-sales and NTM price-to-earnings multiples at 2.9 and 22.9, respectively.

Meanwhile, 5N Plus’s management expects demand for specialty semiconductors in the terrestrial renewable energy and space solar power markets to remain robust, as customers increasingly seek advanced materials from dependable, high-quality suppliers. With its strategic global footprint and strong sourcing capabilities, the company is well-positioned to outperform peers. Given these favourable growth drivers, I expect 5N Plus to sustain its financial momentum in the coming quarters, supporting further appreciation in its stock price.

Savaria

The third under-$25 Canadian stock I’m bullish on is Savaria (TSX: SIS), a provider of accessibility solutions for individuals with physical challenges. An aging population and rising income levels continue to drive demand for accessibility products, expanding Savaria’s addressable market. To capture this growth, the company is investing in innovative product development and strengthening its production capabilities.

Savaria’s “Savaria One” initiative has further enhanced operational efficiency by improving factory layouts, optimizing inventory management, and streamlining procurement across its sites. These efforts have helped the company raise its adjusted EBITDA margin above its 20% target. With a strong presence in Canada and the United States, the company is also evaluating its supply chain and manufacturing footprint to ensure competitiveness and service continuity amid geopolitical uncertainty.

In addition, Savaria offers a monthly dividend with a yield of 2.6% and trades at an attractive NTM price-to-earnings multiple of 15.9. Considering all these factors, I believe Savaria can deliver superior returns over the next three years.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

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