You don’t need a large pool of cash to begin investing in the smartest TSX stocks. Even a modest $500 can be the first step toward building long-term wealth. The key is focusing on fundamentally strong businesses that can compound value over time.
A strategy built on small but steady contributions can make a meaningful difference, especially when invested in companies with strong growth prospects.
So if you’re looking to put your $500 to work, here are the smartest TSX stocks to buy now.
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MDA Space
MDA Space (TSX:MDA) is one of the smartest TSX stocks to buy now. Shares of this space technology company have witnessed a steep sell-off. The stock tumbled after a major satellite order was cancelled, shaking market confidence in the near term. However, this decline is a solid buying opportunity, as MDA Space is set to benefit from rising demand for its offerings.
MDA Space specializes in next-generation satellites, robotics, and geointelligence solutions. These technologies are becoming increasingly essential as global demand for high-speed communication grows and defence budgets continue to rise. National security priorities are shifting beyond Earth’s atmosphere, and NATO’s renewed emphasis on space provides a solid opportunity for growth.
MDA’s investments in advanced communications platforms designed for broadband and 5G connectivity position it well to capitalize on the growth in satellite-enabled data services. Further, growing demand for earth-observation tools and robotic systems from government and commercial customers provides significant growth opportunities.
Importantly, MDA Space has a strong project backlog, which will support growth. Further, its solid balance sheet provides the flexibility to pursue mergers and acquisitions that can accelerate innovation and market expansion.
Bird Construction
Bird Construction (TSX:BDT) is another compelling investment. The construction and maintenance company has consistently delivered strong financial performance, benefiting from a strong presence across key domestic markets. Its broad footprint gives Bird access to critical sectors, helping ensure reliable financial performance year after year.
Bird’s business benefits from its collaborative contracting model. Instead of taking on the full weight of project risk, the company shares responsibility with clients, a smart move that helps protect margins and keeps operations resilient during tougher economic periods. Its focus on lower-risk projects in essential areas such as energy infrastructure, transportation systems, and defence adds stability to its operations and drives its financials.
Bird’s diversified operations and expanding project backlog set the stage for continued growth. With a balance sheet that supports future investments, Bird Construction is well-positioned to pursue acquisitions that could further strengthen its market position.
goeasy
goeasy (TSX:GSY) is one of the smartest TSX stocks to buy now, offering growth, income, and value. Shares of this subprime lender have fallen about 42% over the past three months. The decline was triggered by a short-seller report. In addition, higher credit-loss provisions, an increase in financing costs, and a strategic pivot toward secured lending dented its short-term profitability.
Nonetheless, the company’s fundamentals remain solid and are expected to benefit from robust loan demand driven by a large portion of the population that remains underserved by traditional banks. Moreover, its diversified funding sources, proven omnichannel strategy, and stable credit performance position it well to continue expanding its customer base while managing risk. Also, its focus on driving operating efficiency will cushion its margins and bottom line.
goeasy stock is trading at a discounted valuation, making it a buy. Moreover, GSY stock offers a compelling dividend yield of about 4.7%.
