Maybe you want to invest in stocks, but you don’t have that much money to spare. Or perhaps you want to buy shares of a company that is just starting its growth trajectory. Whatever the reason you’re interested in small cap stocks trading under $10, I think you’ve come to the right place.
In this article, I discuss three stocks under $10 that are worth your consideration.
Blackberry
Most of us have heard of it Blackberry Ltd. (TSX:BB). But I wonder if most of us really know what this company stands for. Let me explain.
Years ago, Blackberry was the leader in portable cell phones. Many investors still think of that when they think of Blackberry. More recently, Blackberry was a meme stock that got caught up in a retail buying frenzy. At that point, the stock skyrocketed from less than $10 to more than $30, then fell again just as quickly. This is what some investors think of when they think of Blackberry.
But the truth about Blackberry is so much more exciting. You see, Blackberry is the leader in software-defined vehicles, a company that is growing rapidly. In fact, 20% of cars made today are considered advanced software vehicles. Blackberry has a market share of over 90% in these types of vehicles.
The company’s latest results exceed expectations as its business gathers momentum, with earnings per share (EPS) expected to reach $0.14 this financial year, up from $0.02 last year.
Northwest Healthcare Properties REIT
Another stock under $10 that I think is a good option is Northwest Healthcare Properties REIT (TSX:NWH.UN). Northwest’s value lies in its 7.1% dividend yield, defensive activities and stable long-term growth profile. Stable, consistent returns are likely for this stock as it benefits from an aging population.
You see, Northwest has quite a few things going for it right now. First, the Bank of Canada lowered its key interest rate again to 2.25%. This is good for real estate funds like Northwest, because they hold quite a bit of debt. Furthermore, the aging population guarantees that demand for medical buildings will remain strong. Finally, Northwest’s weighted average lease term is currently 13.5 years, its occupancy rate is 97%, and 84% of leases are subject to rent indexation.
The second quarter saw continued stabilization of Northwest’s operations, with further reductions in debt, a 20% increase in adjusted funds from operations and further reductions in the payout ratio. Northwest will report third-quarter results on November 12.
Well, health technologies
The last stock trade under $10 that I want to highlight is Well Health Technologies Ltd. (TSX: GOOD). Well Health is a company that continues to deliver strong revenue growth as it strives to digitalize Canada’s healthcare system.
In Well Health’s latest quarter, revenue rose 57% to $356.7 million, earnings per share reached $0.10 and free cash flow rose 34% to $11.7 million. Over the past year, the stock is up 14% to the current $5.04, and expectations for 2025 earnings per share are $0.32 versus $0.13 in 2024. This represents a growth rate of 146%.
Well Health shares trade at 15 times this year’s expected earnings and 13 times next year’s expected earnings. In my opinion, it is due for a revaluation as the company continues to experience success. Healthtech will announce its third-quarter results on November 6.
The bottom line
In my opinion, these three stocks under $10 show clear potential to provide investors with strong returns in the coming years. Although Blackberry and Well Health carry more risk, they also have much higher return potential. Northwest, on the other hand, is likely to deliver consistently attractive dividend income with steady growth over the long term.
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