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These Stocks Are Less Than $20 Now But They’re on Their Way Up

Alex Smith

Alex Smith

1 month ago

5 min read 👁 3 views
These Stocks Are Less Than $20 Now But They’re on Their Way Up

One of the most compelling aspects of equity investing is that you do not need a large amount of capital to get started. Even with a modest budget, investors can gain exposure to high-quality companies well-positioned to grow over the long term. The Toronto Stock Exchange has several fundamentally strong businesses, shares of which trade for less than $20, offering an accessible entry point for investors.

While these stocks are trading cheap, they have proven business models, solid balance sheets, and are likely to benefit from long-term structural tailwinds.

Against that backdrop, here are three TSX stocks that are trading less than $20, but they’re on their way up.

Under-$20 stocks #1: SECURE Waste Infrastructure

SECURE Waste Infrastructure (TSX:SES) is an attractive under-$20 stock to add to your portfolio. Its diversified portfolio of energy and waste infrastructure generates reliable cash flow across all market conditions. Moreover, a large portion of the company’s earnings stems from production and industrial activity rather than the more unpredictable drilling cycle, providing a buffer against swings in commodity prices.

Furthermore, management’s continued emphasis on efficiency and cost control helps protect margins, even when external conditions are less favourable.

While the company’s metals recycling segment is facing near-term pressure from trade-related challenges, these issues appear temporary. Looking ahead, improving market conditions, operational optimization, and the completion of key infrastructure projects could drive incremental earnings growth. With steady Canadian oil and gas production and rising throughput volumes, SECURE’s long-term outlook remains attractive.

Under-$20 stocks #2: 5N Plus

5N Plus (TSX:VNP) is an attractive stock to buy under $20. The company is a leading supplier of specialty semiconductors and high-performance materials to high-growth industries, including space solar power, terrestrial renewable energy, imaging and sensing, and health and pharma. As these sectors expand, demand for 5N Plus’s advanced materials is expected to remain robust, supporting steady growth.

Its Specialty Semiconductors segment is already seeing strong momentum, driven by renewable energy and space-related demand. A newly expanded supply agreement with a major customer is projected to increase semiconductor compound volumes in the coming years.

With a solid project pipeline and expanding solar cell production capacity, 5N Plus is expected to deliver solid growth. Moreover, it is a leading supplier of ultra-high-purity materials outside China, which is positive given global supply chains’ priority on secure, diversified sourcing.

Under-$20 stocks #3: CES Energy

Investors looking for the best TSX stocks under $20 could consider CES Energy (TSX:CEU). The company is a leading supplier of specialty chemicals that play a key role across the oil and gas value chain, from improving drilling efficiency to protecting pipelines and processing infrastructure.

Demand for its products and solutions is rising as producers increase activity and adopt more advanced technologies. CES also benefits from a capital-light business model that supports strong free cash flow generation, allowing it to reinvest in growth.

While CES Energy is likely to benefit from rising demand, its operations remain relatively resilient to the ongoing geopolitical and trade-related uncertainty. Its U.S.-focused revenue base and integrated North American operations help reduce risk and support stable performance across energy cycles. In short, CES Energy is a compelling long-term bet with potential to deliver significant returns.

The post These Stocks Are Less Than $20 Now But They’re on Their Way Up appeared first on The Motley Fool Canada.

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Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Ces Energy Solutions and Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy.

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