Investors don’t have to make large payments to see large returns — far from it — even if you can only invest a little at a time, the strategy of drip feeding into stocks can be incredibly beneficial to your income. By looking into stocks like these four, you offer yourself a chance to invest in strong growth opportunities, at a cheap price.
NorthWest Healthcare
If you want stability after this volatile market, you definitely want to consider NorthWest Healthcare Properties REIT (TSX:NWH.UN). The company owns a diverse set of health care properties around the world, with 97.2% occupancy rate as of writing. That’s significant, as the company currently offers an average 14.5 year lease!
Revenue exploded during the pandemic, and remains strong today. Yet even after a 122% increase in share price, shares are still trading under $20 as of writing. The company also offers a 6.4% dividend yield, and an incredibly valuable 1.5x price to book ratio (P/B). This company is still undervalued with the opportunity for growth in the health care industry, so now is a great time to buy.
WELL Health
If you want to stick to the health care sector I wouldn’t blame you, especially with companies like WELL Health Technologies Corp. (TSX:WELL) around. The company entered the telehealth arena a few years before the pandemic, and was the benefactor of incredible growth. WELL Health continues to expand through acquisitions at a rapid pace, and has recently entered the U.S. market.
Yet again the stock remains undervalued in my opinion given the room for growth. Telehealth will continue as a main means of connecting with health care professionals for the foreseeable future. So share growth is practically a given. Shares are up 396% in the last year alone, but 2,380% in the last three years! Yet the share price is well below $20 at about $8.50 as of writing.
Goodfood
Another benefactor of pandemic consumers has been Goodfood Market Corp. (TSX:FOOD). The company exploded in the early days of the pandemic, and since then hasn’t really come down. The company was already growing at a rapid pace, but needed to up its game to keep up with demand, opening up fulfillment centres across Canada.
Yet with a market capitalization of $611 million, the company has a ton of room to grow when comparing to international peers in this multi-billion-dollar industry. Shares are up 297% in the last year after a pullback in the new year as vaccines begin to rollout. And again shares are definitely affordable at about $10.25 as of writing.
BlackBerry
Finally, BlackBerry Ltd. (TSX:BB)(NYSE:BB) may be down, but don’t count it out. The company saw a major surge in the new year from the settlement of a patent dispute, the partnership with Amazon Web Services on its IVY platform, and the federal funding of the United States President Joe Biden for electric vehicles.
All of this combines to show investors that massive growth is in the company’s future. The share price rose to $36 from greed, and has since shrunk to $12.75 as of writing out of fear. As Warren Buffett says, “Be fearful when others are greedy, and greedy when others are fearful.”
Given the chance you have to see incredible revenue growth as the company’s IVY and QNX software are placed in electric vehicles around the world, today’s share price is a bargain.
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- Can BlackBerry Execute, or Will it Be Punished by the Market?
- Build a 5G Portfolio: 3 Canadian Stocks to Buy Right Now
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe owns shares of Goodfood Market, NORTHWEST HEALTHCARE PPTYS REIT UNITS, and WELL Health Technologies. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends BlackBerry, BlackBerry, Goodfood Market, and NORTHWEST HEALTHCARE PPTYS REIT UNITS and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.
The post 4 Top TSX Stocks to Buy Under $20 appeared first on The Motley Fool Canada.
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