Even with a modest capital, you can start investing in high-quality Canadian stocks. For example, shares of many fundamentally strong TSX stocks with solid prospects are trading below $20, making them screaming bargains today.
Against this backdrop, there are three TSX stocks under $20 that you can buy right now.
#1 stock under $20: CES Energy Solutions stock
CES Energy Solutions (TSX:CEU) is an attractive long-term stock trade under $20. The company provides advanced chemical solutions essential to oil fields. As North American drilling activity increases and extraction methods become more complex, CES is well positioned to meet rising demand for specialty chemicals that increase efficiency and production.
Thanks to its capital and asset-light operations, vertically integrated operations and countercyclical balance sheet, the company is well positioned to generate strong free cash flow. This allows the company to reinvest in growth and increase shareholder value.
While geopolitical and trade uncertainty pose challenges, CES will likely benefit from a heavily US-centric revenue base, a flexible supply chain and integrated operations in Canada and the United States. Furthermore, with its presence in all major U.S. basins, increasing service intensity and strong demand trends, CES Energy Solutions is poised to deliver solid growth and attractive returns for investors.
#2 stock under $20: 5N Plus
5N plus (TSX:VNP) supplies specialty semiconductors and high-performance materials. Although the stock has risen significantly recently, it is still trading below $20 and has significant upside potential. The company’s products are in high demand in markets with long-term demand trends.
The company’s specialty semiconductor segment is particularly well positioned to benefit from rising demand for renewable energy on Earth and solar projects in space. Growing demand for clean energy, powered by artificial intelligence and cloud infrastructure, is creating a strong tailwind for scalable solar solutions, which 5N Plus is benefiting from.
5N Plus’ acquisition of Germany-based AZUR Space and its growing capabilities have strengthened its position in space applications. Furthermore, 5N Plus is expanding its solar cell manufacturing capacity, which will help it gain market share in the commercial, civil and defense markets. In addition to energy, the company’s high-purity materials are essential for medical imaging technologies that reduce radiation exposure, and the Performance Materials segment benefits from strong demand for bismuth-based pharmaceuticals and specialty chemicals. It also supplies high-purity materials outside China, providing a strategic advantage amid uncertainties in global trade.
With a diversified portfolio, a robust supply chain and exposure to some of the fastest-growing sectors, this small-cap stock has the ingredients to deliver outsized returns.
Stock #3 under $20: Lightspeed
Trading below $20, Speed ​​of light (TSX:LSPD) stock is too cheap to ignore near current levels. The cloud-based commerce platform is well positioned to benefit from the continued shift to omnichannel retail and recurring revenue model.
Despite the recent pressures of macroeconomic uncertainties and Lightspeed’s decision to remain public, Lightspeed’s fundamentals remain solid. The Canadian technology company focuses on high-potential markets, including residential customers in North America and hospitality customers in Europe. Additionally, it acquires higher value customers, leading to greater adoption of its software modules, increasing transaction volumes and driving average revenue per user (ARPU) and retention.
Lightspeed also strategically bundles POS and payment solutions. This has strengthened payment penetration and increased revenue. The company is also expanding its footprint and cross-selling products.
With a large addressable market, rising ARPU, a focus on improving operational efficiency and a low valuation, Lightspeed is an attractive stock to buy today.
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