Building a strong long-term equity portfolio does not necessarily require a large initial investment. Investors can begin by consistently allocating capital to high-quality TSX stocks trading at relatively low prices, say priced under $20. Over time, this disciplined approach can help accumulate meaningful wealth through compounding and sustained market participation.
The key is to focus on fundamentally strong businesses with durable competitive advantages and solid growth prospects. Focus on companies with the ability to scale profitably and adopt a buy-and-hold approach to minimize the impact of short-term market volatility.
With this background, here are two TSX stocks priced under $20 that look worth picking up today.
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Under $20 stock #1: CES Energy Solutions
Investors looking for high-quality stocks priced under $20 could consider CES Energy (TSX:CEU). The company supplies consumable chemical solutions used by oil and gas producers to enhance production, improve operational efficiency, and protect critical upstream infrastructure.
Demand for CES Energy’s advanced chemical products has remained strong, supporting a notable rise in its share price. The stock has gained about 193% over the past year and more than 594% in three years. Despite this significant rally, CES Energy stock has meaningful upside potential as industry demand dynamics remain solid.
CES maintains a strong market share and continues to benefit from elevated service intensity, which has supported revenue growth even as rig counts in the U.S. and Canada have softened. Strategic acquisitions have also strengthened CES Energy’s capabilities, improving financial performance and supporting continued expansion. At the same time, the company operates with an asset-light business model, enabling it to generate consistent free cash flow that supports reinvestment and shareholder returns.
Notably, broader industry factors, including global energy demand, LNG expansion, AI-driven power consumption, and limited upstream investment in recent years are increasing the need for advanced chemical treatment and improved drilling performance. This should support CES Energy’s growth.
Although economic uncertainty, geopolitical tensions, and trade policies may create short-term volatility, CES Energy’s large U.S. revenue base, vertically integrated operations, and flexible supply chain help mitigate these risks. Overall, the company appears well-positioned to sustain its growth trajectory into 2026 and beyond.
Under $20 stock #2: Dexterra
Dexterra (TSX:DXT) is another attractive stock priced below $20. The company provides integrated facilities management services, workforce accommodation solutions, and a range of support services across multiple end markets.
Over the past three years, Dexterra has delivered impressive performance, with its stock registering total capital gains of approximately 176%. This strong rally reflects the company’s solid financial results and the impact of its strategic acquisitions. In addition, Dexterra has returned capital to shareholders through dividend payments and share buybacks.
The company continues to strengthen its platform through targeted investments. Its acquisition of Pleasant Valley Corporation (PVC) expands Dexterra’s facilities management presence in the U.S., increasing scale and improving access to a large outsourced services market with a robust growth pipeline. This move supports the company’s broader strategy of expanding its footprint in key markets while building long-term service capabilities.
Dexterra has also enhanced its growth outlook through the acquisition of Right Choice. The transaction provides an immediate boost to revenue and adjusted EBITDA while adding a high-quality workforce accommodation equipment fleet. Much of this fleet remains underutilized, offering additional capacity that can support future expansion as demand grows.
Looking ahead, management remains focused on driving profitable growth, particularly in the U.S., where outsourcing opportunities remain substantial. At the same time, higher utilization within the company’s asset-based services business is expected to support further earnings growth.
Overall, Dexterra’s strong operational performance, disciplined acquisition strategy, and commitment to shareholder returns position the company well to deliver continued capital appreciation and meaningful cash returns to investors.
