5 Top TSX Stocks to Buy Under $30 for Superior Returns
The Motley Fool
Published Apr 22, 2021 14:30
Updated Apr 22, 2021 14:45
5 Top TSX Stocks to Buy Under $30 for Superior Returns
Investors looking for high-growth stocks at a lower dollar amount could consider buying the shares of these five Canadian companies. These TSX stocks are trading under $30 and have good growth prospects.
Well Health I am upbeat on WELL Health Technologies (TSX:WELL) stock and expect it to deliver stellar returns on the back of its solid financial performance, strategic acquisitions, and strong momentum across its digital and in-person channels. I believe its growing scale, global expansion of the electronic medical records business, and favourable industry trends should support its financials and stock price.
The company projects its Canadian operations to deliver solid adjusted EBITDA and cash flows and mark sequential improvement. Well Health’s strong digital assets and robust acquisition pipeline suggest that the company could deliver strong financial numbers, including solid organic and inorganic revenues, gross profit, and cash flows. Meanwhile, its stock has witnessed a healthy pullback, presenting a good buying opportunity.
Absolute Software I am bullish on Absolute Software (TSX:ABST)(NASDAQ:ABST) stock, thanks to increased spending on cybersecurity threats and higher demand for its endpoint security products. Absolute Software stock is up about 84% in one year, and I expect the uptrend in its stock to continue, reflecting stellar growth in annual recurring revenues.
Moreover, Absolute Software’s robust new product pipeline, customer additions, high retention rate, and large addressable market further strengthens my bullish view. Furthermore, its strong debt-free balance sheet and global expansion augur well for growth. Notably, Absolute Software stock is trading at an EV-to-sales multiple of 4.7, which is well below the peer group average.
Goodfood Market Goodfood Market (TSX:FOOD) is another high-growth stock under $30 that should be on your radar. While its stock handily outperformed the benchmark index in the past three years, it is down about 33% this year, providing an excellent entry point for long-term investors.
The company’s active subscriber base is growing at a solid double-digit rate. I expect the trend to sustain on the back of the continued adoption of online grocery services. I believe Goodfood Market’s strong delivery capabilities, focus on reducing delivery time, expanded product offerings, and efficient marketing are likely to drive its customer base, order frequency, and order size. The strong secular industry trends provide a multi-year growth opportunity for Goodfood Market and its stock.
AltaGas AltaGas (TSX:ALA) owns a low-risk and higher growth business and offers a solid mix of growth and income. The company’s regulated utility assets generate predictable cash flows and support its dividend payments. Meanwhile, its high-growth midstream business continues to grow at a stellar pace and supports overall revenues and profitability.
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I believe continued rate base growth, customer additions, and cost-reduction measures in the utility business are likely to drive AltaGas’s bottom-line and future dividend payments. Moreover, higher export volumes in its midstream operations could accelerate its growth rate and drive its stock higher.
Kinross Gold Kinross Gold (TSX:K)(NYSE:KGC) is one of the top TSX stocks trading under $30. Its strong fundamentals, growing production volumes, and an expected decline in costs position its well to deliver solid earnings and cash flows that could drive its stock higher. Also, its solid balance sheet and superior exposure to gold augur well for future growth.
Furthermore, Kinross Gold stock is trading cheap compared to peers and looks attractive at current levels. Its forward EV-to-EBITDA multiple of 5.1 reflects a significant discount to the peer group average. Meanwhile, Kinross Gold offers a decent yield of 1.6%.
The post 5 Top TSX Stocks to Buy Under $30 for Superior Returns appeared first on The Motley Fool Canada.
Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends ALTAGAS LTD. and Goodfood Market.
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