3 Obvious TSX Stocks Under $50

Investing in the stock market doesn’t always require deep pockets. You can start with as little as $50 to build a solid long-term portfolio and generate significant returns over time. The key is to be patient and make smart choices. By choosing companies with solid fundamentals and promising growth potential, your small investment can grow significantly over the years.

With that in mind, let’s take a look at three obvious Canadian stocks that are trading under $50 and that can help investors earn solid profits over the long term.

Aritzia

Aritzia (TSX:ATZ) is an attractive stock trading below $50. This luxury apparel company is known for delivering above-average growth, which drives up its share price. For example, Aritzia shares are up about 174% over the past five years, reflecting double-digit growth in revenue and adjusted net income over the same period.

Continued top-line growth and improved earnings before interest, taxes, depreciation, and amortization (EBITDA) margins are likely to support Aritzia’s stock’s upward trend. The company expects its net income to grow at a compound annual growth rate (CAGR) of 15%-17% through fiscal 2027. Aritzia could achieve this growth as it plans to open eight to 10 new U.S. boutiques per year through fiscal 2027 and increase its total retail space by up to 60%.

In addition, the clothing retailer’s focus on expanding its omnichannel offering and increasing brand awareness is likely to support its growth. In addition, its investments in supply chain and technology, as well as productivity savings, are likely to drive its profits and share price.

Lightspeed Commerce

Lightspeed Commerce (TSX:LSPD) offers significant value at its current market price. Trading below $50, the omni-channel commerce and digital payments platform provider is under pressure from macro headwinds. However, the tech company’s fundamentals remain strong and it is poised to benefit from the structural shift toward omni-channel sales platforms.

Additionally, Lightspeed stock is too cheap to ignore. Its forward enterprise value-to-sales (EV/sales) ratio of 1.1 is near a record low, providing a solid buying opportunity.

Lightspeed products are likely to enjoy increased demand as companies modernize their traditional payment systems and invest in advanced technology. In addition, Lightspeed’s acquisitions will expand customer geographies and support new product development. In addition, the company has consistently delivered solid revenues, focusing on improving unit economics and increasing average revenue per user, which will enable it to generate sustainable profitability and drive higher share price.

GOOD HEALTH

GOOD HEALTH (TSX:WELL) is an attractive stock near current levels. The combination of solid growth and a low valuation make it an attractive investment. It is a leading Canadian digital healthcare company and the largest owner-operator of outpatient medical clinics. While WELL Health has been steadily growing its revenues and earnings, its shares are trading at a 12-month enterprise value to sales (EV/Sales) multiple of 1.5, which is close to its lowest level on record.

WELL Health is poised to benefit from increased omnichannel patient visits. In addition, acquisitions will further enhance scale and accelerate revenue growth. WELL Health is also investing in artificial intelligence (AI) technology to develop innovative clinical products to improve healthcare delivery and drive future growth.

In addition, WELL Health is optimizing its operations to increase organic growth and profitability. It is also working to increase cash flow, reduce debt and minimize stock dilution with the goal of delivering solid shareholder returns.