2 TSX Stocks Priced Under $100 With Serious Upside Potential
Alex Smith
1 hour ago
Optimism surrounding easing geopolitical tensions between the United States and Iran, along with the reopening of the Strait of Hormuz, helped lift Canadian equities earlier this week. However, market sentiment weakened over the last two trading sessions as investors weighed the prospect of a prolonged restrictive monetary policy stance from the U.S. Federal Reserve and declining energy prices.
Despite this uncertainty, I remain bullish on the following two Canadian stocks trading below $100 per share. Backed by strong underlying businesses and attractive growth prospects, these companies appear well-positioned to deliver solid long-term returns. LetâÂÂs take a closer look at each of them.
Savaria
Savaria (TSX:SIS) develops, manufactures, and distributes a broad range of accessibility and mobility solutions for individuals with physical limitations. Its product portfolio includes elevators, stairlifts, wheelchair lifts, pressure management products, medical beds, and other specialized medical equipment. Supported by an extensive manufacturing footprint and a well-established global distribution network, the company serves customers across numerous international markets.
The aging global population continues to drive demand for accessibility and mobility solutions, creating a favourable long-term growth backdrop for Savaria. To capitalize on this opportunity, the company is investing in product innovation, expanding its manufacturing capacity, and improving operational efficiency. In addition, its solid financial position provides the flexibility to pursue strategic acquisitions that can expand its market reach and enhance its growth prospects. Management also focuses on driving margin expansion through ongoing operational improvements.
Supported by these initiatives, Savaria aims to increase its revenue to $1.6 billion by 2030, representing annualized growth of approximately 12%, while maintaining an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin above 20%. Besides, the company also pays shareholders monthly dividends, and its dividend yield currently stands at 1.9% on a forward basis. Year-to-date, the company has delivered a total shareholdersâ return of 29.6%, outperforming the broader markets. Despite these solid returns, the company trades at a reasonable next-12-month price-to-earnings multiple of 20.6, making it an attractive investment for long-term growth-oriented investors.
5N Plus
Another under-$100 stock that stands out as an attractive investment today is 5N Plus (TSX:VNP), a producer of specialty semiconductors and performance materials used in a wide range of critical applications across high-growth industries. Driven by strong financial performance and exposure to expanding end markets such as renewable energy, aerospace, and advanced semiconductor technologies, the stock has generated an exceptional return of more than 1,200% over the past three years, representing an annualized gain of 135.4%.
The company appears well-positioned to sustain its growth momentum as demand for specialty semiconductor materials continues to rise across its core markets. Long-term trends, including the expansion of terrestrial renewable energy projects and the development of space-based solar power systems, should continue to support demand for its products. With its expertise in producing ultra-high-purity semiconductor materials, 5N Plus could capitalize on these opportunities and strengthen its competitive position.
To support future growth, the company is expanding its production capabilities. It plans to increase solar-cell production capacity at AZUR SPACE Solar Power GmbH by 25% this year. In addition, 5N Plus has secured a US$18.1 million grant from the U.S. government to enhance germanium recycling and refining operations at its St. George, Utah, facility. These investments could strengthen supply chains for optics, solar germanium crystals, and other germanium-based technologies in the United States.
Given the favourable industry backdrop, ongoing capacity expansions, and strong execution, 5N Plus appears well-positioned to deliver solid long-term growth, making it a compelling investment opportunity for growth-oriented investors.
The post 2 TSX Stocks Priced Under $100 With Serious Upside Potential appeared first on The Motley Fool Canada.
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More reading
- 3 of the Best Canadian Stocks for a Buy and Hold in a TFSA
- 2 Dividend Super Stars That Look Strong After Recent Pullbacks
- Top Canadian Stocks to Buy With $20,000 in 2026
- 5 Canadian Stocks to Buy and Hold for the Next 5 Years
- HereâÂÂs How IâÂÂd Invest $5,000 in Canadian Stocks Right Now
Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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