Got $500? 3 Under-$25 Canadian Growth Gems to Grab Now
Alex Smith
3 weeks ago
You donât need a large amount of capital to start your investment journey. Small but consistent investments can create substantial wealth over the long term. Against this backdrop, letâs look at three companies you can buy with just $25 that offer higher growth potential.
5N Plus
5N Plus (TSX:VNP) produces and markets specialty semiconductors and performance materials that are critical to several high-growth industries. Supported by strong quarterly performances and the rapid expansion of the global semiconductor market, the company has delivered an impressive return of more than 175% over the past 12 months.
Higher sales in its terrestrial renewable energy and space solar power segments within its specialty semiconductors business, as well as favourable pricing for bismuth-based products in its performance materials segment, have strengthened the companyâs financial results, driving its share price higher.
Looking ahead, management expects demand to remain robust as customers increasingly seek advanced materials from trusted and reliable partners for applications in renewable energy and space solar power. With its global sourcing network and well-established manufacturing capabilities, 5N Plus enjoys a competitive advantage over many of its peers.
Despite the sharp run-up in its stock price, the company continues to trade at a reasonable valuation. Its next-12-month price-to-sales and price-to-earnings multiples stand at approximately 3.1 and 25, respectively, making 5N Plus an attractive buying opportunity for investors with a longer investment horizon.
Savaria
Another under-$25 stock that I am bullish on is Savaria (TSX:SIS), a company that provides accessibility solutions for elderly and physically challenged individuals. Backed by extensive manufacturing facilities and a global dealer network, Savaria markets its products worldwide and is well-positioned to benefit from the long-term demographic trend of an aging population, which continues to drive demand for its offerings.
To capitalize on this tailwind, the company is focused on developing innovative products that address evolving customer needs and strengthen its competitive position. In parallel, the rollout of its âSavaria Oneâ initiative has meaningfully enhanced operational efficiency by optimizing factory layouts, streamlining inventory management, and consolidating procurement across its facilities. These efforts have helped lift Savariaâs adjusted EBITDA margin above its targeted level of 20%.
Additionally, management is actively reviewing the companyâs supply chain and evaluating strategies to optimize its North American manufacturing footprint amid ongoing geopolitical uncertainty. These initiatives should help preserve Savariaâs competitiveness and support uninterrupted service delivery over the long term.
Supported by solid growth prospects, a reliable monthly dividend with a forward yield of approximately 2.3%, and a reasonable next-12-month price-to-earnings multiple of 18.5, Savaria stands out as an attractive buying opportunity for investors seeking both growth and income.
Lightspeed Commerce
My final pick is Lightspeed Commerce (TSX:LSPD), which provides omnichannel commerce and payment solutions to businesses in more than 100 countries. Although the stock has been under pressure in recent months, the companyâs improving financial performance and solid long-term growth prospects make it an attractive buying opportunity.
In its recently reported second-quarter results for fiscal 2026, Lightspeed delivered 15% year-over-year revenue growth, driven by customer base expansion and higher average revenue per user (ARPU). Profitability also improved meaningfully, with adjusted EBITDA rising 52.1% year over year to $21.3 million. Notably, the company generated $18 million in free cash flow during the quarter, a sharp improvement from $1.6 million in the same period last year.
As e-commerce adoption continues to accelerate, more businesses are embracing omnichannel sales strategies, expanding Lightspeedâs addressable market. At the same time, the company is introducing innovative products â including AI (artificial intelligence)-driven tools â and expanding its payments solutions into new geographies, which should further strengthen its competitive position.
In addition, Lightspeedâs ongoing cost-optimization initiatives, such as AI-enabled streamlining of support and service operations, are improving operating efficiency. Together, these efforts position the company for sustained profitability and renewed long-term shareholder value creation.
The post Got $500? 3 Under-$25 Canadian Growth Gems to Grab Now appeared first on The Motley Fool Canada.
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More reading
- The Secrets That TFSA Millionaires Know
- 5 Stocks for Canadian Value Investors
- 3 No-Brainer Stocks to Buy Under $50
- TFSA: 4 Growth Stocks to Buy And Hold Forever
- These Are My Top TSX Stocks to Buy Right Now
Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.
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