Are you looking for the best Canadian stocks to buy? There are companies under $5 that offer investors some of today’s top market growth potential. As economies worldwide continue to recover rapidly from the pandemic, investors have many opportunities now since many of the best Canadian stocks are worth buying today.
While the potential is there in finding high-quality value and dividend stocks, you still need to be cautious while looking for some stocks to buy. So, when you find stocks that possess high-potential operations while trading at a low share price, you can have all the potential to earn significant gains. So, let’s go ahead and talk about five of the best stocks under $5 to buy in Canada today.
What's in the Article:
Top 5 Stocks Under $5 in Canada
Here are now five (5) of the best Canadian stocks under $5 you need to watch out for:
-
B2Gold Corp.
Considered one of the best Canadian gold stocks, B2Gold Corp. is also one of the cheapest stocks to buy today. That’s why it’s included in this list. B2Gold Corp. has reported earnings recently. With second-quarter numbers less ideal, it still expects a strong recovery by the second half of 2021.
This gold mining company has one of the lowest-cost producers in the gold industry. This trait allows them to become one major cash cow. In addition, they even return cash to investors, making it one of the most valuable Canadian stocks to date.
With B2Gold Corp. as an exploration company, this firm engages in mineral property acquisition and development. The company operates across these segments: Fekola Mine, Libertad Mine, Limon Mine, Masbate Mine, and Otjikoto Mine. This gold stocks company was founded by Mark Anthony Corra, Thomas A. Garagan, Clive Thomas Johnson, and Roger Thomas Richer back on November 30, 2006, and is based in Vancouver, Canada.
Additional Information:
- Ticker Symbol: TSXV: BTG
- Industry: Gold
- Sector: Basic Materials/Resources
- Fiscal Year-End: 12/2021
- Revenue: $2.4B
- Net Income: $842.42M
- 2020 Sales Growth: 48%
- Employees: 6,120
-
Drone Delivery Canada Corp.
Being one of the most high-potential drone stocks, Drone Delivery Canada is your best option if you’re looking for a Canadian tech stock on top of its game and with massive growth potential.
This drone company has built a unique platform for drones ready for operation for the past seven years. Drone Delivery Canada was included in this list, from comprehensive flight plans to significant payload testing,, because they’ve done extensive work.
Partnered with several pilot partners, Drone Delivery Canada Corp. only strives and continues to find new opportunities that can help expand its business. They offer drones that you can readily use for delivery services, healthcare, mining, and even the industrial sector. In addition, they continue to take crucial steps, including a license obtaining from the Canadian Transportation Agency. The sky’s the limit for this penny shares stock. It is still considerably cheap. It is one of the best Canadian stocks to buy today.
Additional Information:
- Ticker symbol: TSXV: FLT
- Industry: Consumer Finance
- Sector: Financial Services
- Fiscal Year-End: 12/2021
- Revenue: $2.39B
- Net Income: $704.22M
- 2020 Sales Growth: -9.82%
- Employees: 8,400
-
HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd., or simply HIVE, is a high-quality crypto stock considered one of the best stocks in Canada. This would be an incomplete list without including this high-potential cryptocurrency stock. That is why it is usually recommended to investors who consider investments in the space.
This crypto stock company engages in building bridges from the blockchain sector down to traditional capital markets. They are also involved in producing mined cryptocurrencies such as Ethereum around the clock. Their projects include Iceland Cryptocurrency Mining. Its foundation day was on June 24, 1987, and it has its headquarters in Vancouver, Canada.
Being one of the top stocks in the cryptocurrency industry, HIVE gives a ton of growth potential. While HIVE has been trading rangebound for a few months already, it is still one of the highest-potential growth stocks you can buy with the rest of the cryptocurrency sector. Having a lot of potential reasons why their sector could be rallying soon, if you’re looking for exposure, now’s the best time to buy these cheap stocks.
And with a ton of high-quality stocks to choose from, HIVE stands out as one of the best Canadian stocks to buy today. However, some companies have delivered in the last quarter, and many biotechs and penny stocks have benefited.
Additional Information:
- Ticker symbol: TSXV: HIVE
- Industry: Software
- Sector: Technology
- Fiscal Year-End: 03/2022
- Revenue: $88.18M
- Net Income: $56.24M
- 2021 Sales Growth: 76%
- Employees: 19
-
Roots Corp.
A top Canadian retail stock, Roots Corp. is another excellent Canadian stock under $5 to consider. This iconic Canadian retailer has dramatically impacted the market scene over the last few years.
Roots Corp. do engagements provisioning leather goods, apparel, and accessories. Their operations segments through the Direct-to-consumer (DTC) and Partners and Other. The company’s Direct-to-consumer segment comprises sales through its corporate retail stores and e-commerce. At the same time, the Partners and Other segment consist mainly of Roots-branded products wholesale to its international operating partner. In addition, they earn royalties through retail sales of Roots-branded products by its partner. This penny share stock company was founded by Don Green and Michael Budman in 1973 and had its headquarters in Toronto, Canada.
Roots are among the strongest brands among Canadian consumers even though its stock trades are cheap, quickly becoming one of the best Canadian businesses to buy today. Moreover, they saw through some headwinds pre-pandemic as they tried improving the economics of its operations.
With their business revitalization and the Canadian economy recovering well from the pandemic, Roots Corp. provides investors tons of specific price values. So, if you’re looking for a Canadian stock to buy and hold for years, Roots is one of the best.
Additional Information:
- Ticker symbol: TSXV: ROOT
- Industry: Clothing Retail
- Sector: Retail/Wholesale
- Fiscal Year-End: 01/2022
- Revenue: $240.51M
- Net Income: $13.08M
- 2021 Sales Growth: -27.09%
- Employees: 2,050
-
Sangoma Technologies Corp.
Sangoma Technologies Corp. is a top communications stock with high-potential communications as a service stock. It is one of Canada’s best telecom stocks and the best stocks to buy today, mainly because it has high potential in terms of growth for stocks offering services with continuous development using popularity.
They engage in hardware and software component provisions, enabling or enhancing Internet Protocol Communications Systems for telecom and datacom applications. Their products include telephony cards, public branch exchange cloud, S-series internet protocol phones, session border controllers, VoIP gateways, and Zulu UC, SIPstation. Founded by David Mandelstam in 1984, this company’s headquarters is located in Markham, Canada.
Even during pre-pandemic times, there had already been a need for businesses to possess robust communications systems. Today, however, all are already paramount. And with Sangoma Technologies capitalizing on this increasing demand, this will undoubtedly become your significant investment.
With its growing sales rapidly making its mark on the penny shares scene and even having made high-potential acquisitions recently, Sangoma Technologies will only continue to expand its operations. So, are you looking for only the best Canadian stocks you can trade cheaply? Then, strongly consider investing in Sangoma Technologies.
Additional Information:
- Ticker symbol: TSXV: STC
- Industry: Networking
- Sector: Technology
- Fiscal Year-End: 06/2022
- Revenue: $167.34M
- Net Income: $766.99K
- 2021 Sales Growth: 34%
- Employees: N/A
Crescent Point Energy (CPG.TO)
Crescent Point Energy is the last TSX stock below $5 is now $9. Since 2016, oil, gas, solar, and coal have been liquid, trading on an excellent cent between $50 and $10, and some of the best energy stocks have outperformed the market. This likely volatility makes conservative and risk-averse investors in these stocks attractive.
In recent months, CPG stock has gained in value and is a solid buy below $5 traded on the Nasdaq. This stock trades at less than $5.00 per share, which is well below the price of Crescent shares.
What are Stocks Under $5 on the TSX?
Also called penny shares, stocks under $5 are those companies that are ineligible for the list of some major stock exchanges. But most over-the-counter stocks never make it to meaningful interactions because specific rules must be complied with to trade over-the-counter. So, buying Canadian penny shares requires assistance from expert brokers, and be mindful when buying stocks online in Canada.
Notably, many popular stocks, especially those not volatile in market capitalization, are the best penny stocks that trade below $5. Many of the cheapest stores include dollar shares, penny shares, and stocks that sell fractions of a penny. Whatever stock trading strategy it may be, penny stocks promise good growth because of their undervalued stock price when doing the right thing. Therefore, you won’t be able to buy Canadian penny shares without a broker like Wealthsimple Trade.
Many penny shares belong to start-up companies in risky markets and sectors, but many incumbents trade for less than $5 a share on the standard market. Cheap dividend stocks include shares of companies that sell chips, AI markets, big data and data analytics stock, SaaS shares, AI-only companies, etc. Be sure to buy these shares on commission-free trading platforms so you can burn your money on fees.
Why Choose Stocks Under $5?
Penny shares or stocks under $5 may seem like cheap stocks to buy, but these companies can be highly volatile and speculative. As most trade through OTC exchanges or through pink sheets, where it is lax listing standards, penny stocks are susceptible to being manipulated and faked. But still, their potential to make significant returns is powerfully alluring, a driving force for risk-taking investors to position themselves with particular securities. Although many penny stocks go bust, once investors exercise careful fundamental analyses and pick good management teams, they could see themselves coveting diamonds in the rough.
As economies recover from the pandemic, investors are given many options, including numerous good Canadian stocks worth buying. The potential for locating quality value stocks in Canada and dividend shares is abundant and good growth shares. Once you find growth stocks having high potential and trade at a low share price, grab on to that potential and make significant profits soon.
It is crucial to know that trading strategies exist in different markets and investments in undervalued yet emerging companies could be the one strategy for you. Hopefully, with today’s article, you are enlightened on your decision-making on which Canadian stocks under $5 to buy, invest in, and be successful soon.
How to Diversify Your Portfolio With Stocks Under $5
Diversifying your investment portfolio with stocks under $5 can be a strategic way to increase returns while managing risk potentially. However, it’s important to approach this with caution and a well-thought-out strategy, as stocks priced under $5, often called “penny stocks,” can be more volatile and risky. Here are some steps to consider:
1. Understand the Risks
- Volatility: Stocks under $5 are typically more volatile. Their prices fluctuate widely, leading to significant gains or losses.
- Liquidity: These stocks may have lower liquidity, making them harder to sell at the desired price.
- Limited Information: Smaller companies might be less transparent, making finding reliable information for informed decision-making harder.
2. Research Thoroughly
- Company Fundamentals: Look into the company’s financial health, management team, growth potential, and market position.
- Industry Potential: Consider the industry’s growth prospects. Emerging industries might offer higher growth potential.
- Regulatory Environment: Understand any regulatory risks impacting the company’s operations.
3. Allocate Wisely
- Small Percentage of Portfolio: Due to their higher risk, these stocks should only make up a small percentage of your total investment portfolio.
- Diversification Within Penny Stocks: Choose stocks from different industries to spread the risk.
4. Look for Quality
- Strong Business Model: Look for companies with a solid business plan, good management, and a track record of success.
- Growth Potential: Companies expanding or entering new markets might offer promising growth opportunities.
Also Read: