Investors looking to increase their returns on investment without breaking the bank look no further than the Canadian cheap stocks market. With lower prices, investors can buy more shares and potentially see a higher investment return.
The six Cheapest stocks in Canada are Namesilo Technologies (CSE: URL), 5N Plus (VNP), Fobi AI (TSXV: MTRX), Parkland Fuels (TSE: PKI), Canadian Natural Resources (TSE: CNQ), and Royal Bank (TSE: RY). These stocks have prices as low as $0.17 per share, making them easy investments for beginner investors that don’t have strong financial clout.
With a stable economy and diverse industries, Canadian companies offer a lower-risk option for those looking to diversify their portfolio. This article will analyze the benefits of investing in the Canadian cheap stock market, provide tips on making the most out of these lower-priced investments, and look at the six cheapest available stocks.
Introduction to Canada’s Cheap Stock Market
Canada’s stock market is often considered to be a “cheap” market compared to its American counterpart. This is primarily because Canadian stocks tend to have lower price-to-earnings ratios and higher dividend yields.
Some investors view these qualities as attractive, as they may indicate the potential for higher returns. However, it’s important to note that the “cheapness” of Canadian stocks can also be attributed to several other factors, including the smaller size and less diversified nature of the country’s economy.
Furthermore, Canadian stocks tend to have greater exposure to commodities and rely on foreign markets for growth.
Top 6 Canadian Cheap Stocks In 2023
The following cheap Canadian stocks offer the potential for higher returns and the opportunity to diversify your portfolio. Here are 6 of the cheapest stocks currently available on the market and their share price as of July 17th, 2023.
|Namesilo Technologies (CSE: URL)||$0.17|
|5N Plus (VNP)||$3.57|
|Fobi AI (TSXV: MTRX)||$0.24|
|Parkland Fuels (TSE: PKI)||$34.71|
|Canadian Natural Resources (TSE: CNQ)||$56.61|
|Royal Bank (TSE: RY)||$128.12|
Overview Of The Cheapest Stock in Canada
#1 Namesilo Technologies
- Ticker Symbol: CSE: URL
- Value: $0.17
As a publicly traded company on the Canadian Securities Exchange (ticker Ticker Symbol: URL), NameSilo Technologies offers investors the opportunity to buy into an established player in the domain registration industry. With a current stock price of $0.17, it may be attractive to those interested in a cheap stock with the potential for growth.
As more individuals and businesses move online, the demand for domain registration services is likely to continue growing. NameSilo Technologies offers a suite of services beyond simply registering domains, including web hosting and a marketplace for buying and selling domains, offering investors the potential for diversified revenue streams.
#2 5N Plus
- Ticker Symbol: VNP
- Value: $3.57
Predictably, the COVID-19 pandemic had a negative impact on 5N Plus's global revenue and stock value. However, in recent months, the company has shown signs of recovery. In quarterly financial results released in February 2022, 5N Plus had reported improved sales and earnings compared to the previous quarter. At the time, shares sold for $2.57, so they’ve seen an appreciation of almost 40%.
Additionally, experts have noted 5N Plus's strong presence in the growing renewable energy sector, as well as its efforts to expand into new markets such as electric vehicle batteries and medical devices. This diversification could prove to be a valuable asset for the company in the long term.
Investors should also keep an eye on developments within the semiconductor industry, which is facing a global shortage. This could potentially benefit 5N Plus, as its specialized materials are often in high demand.
#3 Fobi AI
- Ticker Symbol: MTRX
- Value: $0.24
In 2020, Fobi AI crashed to $0.10 during the COVID-19 pandemic. However, the company bounced back and saw moderate growth in the following months, reaching its peak in September 2021. While there have been no major fluctuations in the first few months of 2022, Fobi AI remains a solid investment option for those looking to invest in Canadian penny stocks.
The company’s success can be attributed to its focus on data intelligence and digital transformation. Fobi AI utilizes artificial intelligence and automated marketing to provide real-time analytics and reporting for businesses, helping them make more informed decisions. Additionally, the company’s focus on contactless solutions has proven to be a valuable asset during the pandemic.
#4 Parkland Fuels
- Ticker Symbol: PKI
- Value: $34.71
Being Canada’s largest independent marketer of fuel and petroleum products, Parkland Fuel Corporation delivers transportation fuel and other high-quality petroleum products to retail, commercial, wholesale, and aviation customers in Canada and the United States.
According to analysts, Parkland is a good stock to buy with a Strong Buy consensus rating based on five unanimous Buy ratings assigned in the past three months. Parkland stock has a 9 out of 10 Smart Score on TipRanks, which means it's likely to outperform the market in the future.
#5 Canadian Natural Resources
- Ticker Symbol: CNQ
- Value: $$74.87
As an independent energy producer, Canadian Natural Resources (CNQ) is one of the best-positioned companies in the world. It has a diversified portfolio of assets across North America, the UK North Sea, and Offshore Africa. This gives it considerable exposure to different markets and enables it to generate value even in tough economic conditions.
From an investment perspective, CNQ is an attractive option for those seeking exposure to the oil and gas sector. It has a proven track record of outperforming its peers and is well-positioned to benefit from the recent rebound in oil prices. As such, it represents a compelling proposition for value investors.
#6 RBC Royal Bank Of Canada
- Ticker Symbol: RY
- Value: $128.12
Diversification is one of the key risk management strategies employed by Royal Bank of Canada (TSE:RY). The company operates in several countries and jurisdictions, reducing its exposure to any particular economy. This was evident during the COVID-19 pandemic when Royal Bank outperformed its Canadian peers due to its more diversified revenue stream.
Looking ahead, Royal Bank is well-positioned to continue growing at a mid-single-digit pace. Its strong balance sheet and prudent risk management practices will stand it in good stead as the global economy continues to recover from the pandemic. Royal Bank remains an attractive option for income investors, with a dividend yield of around 4% and an 11-year dividend growth streak.
Advantages of Investing in Cheap Stocks
Investing in cheap stocks can offer numerous advantages, especially for beginner investors. Cheap stocks are more affordable to buy, meaning you can get started with a smaller investment. They also offer greater potential upside than more expensive stocks, allowing you to make larger profits on your investment. Here are the other additional advantages:
- They can help you diversify your portfolio
- They are easier to trade
- They often have high short-term returns
- They can provide good protection against inflation
- They offer a higher degree of liquidity
- They are less likely to be manipulated by large investors
- They may offer a tax advantage
- They can be used to hedge other investments
- They provide greater downside protection
- They tend to have lower expenses
- They offer greater transparency
- They tend to have better investor relations.
Tips for Finding and Researching Potential Investments
As a Canadian investor, you have access to various investment opportunities. With the right research and due diligence, you can find an investment that meets your needs and helps you reach your financial goals.
Here are some tips for finding and researching potential investments:
Define Your Investment Objectives
What are you looking to achieve with your investment? Do you want to generate income, grow wealth, or preserve capital? Once you know your objectives, you can narrow down the universe of potential investments.
Consider Your Risk Tolerance
How much risk are you willing to take on? Riskier investments tend to offer higher returns, but they also come with more volatility and a greater chance of loss. Before investing, it’s essential to understand your own risk tolerance and invest accordingly.
Do Your Research
Once you’ve defined your investment objectives and determined your risk tolerance, you can begin researching potential investments. Various resources are available to help you with your research, including financial publications like Investor’s Business Daily, company websites, and stock analysis tools like Stock Rover.
Consider Hiring a Professional Advisor
If you want help finding and researching potential investments, you may consider hiring a professional advisor. A qualified advisor can offer valuable guidance and insights into the investment process.
There are many ways to find a professional advisor. One of the best ways is to ask around amongst your friends and family. If anyone has experience with investing in the stock market, they may be able to recommend an excellent advisor to you. Another option is to look online. There are many websites like Advisorsavvy that have lists of professional advisors.
Once you've found a few potential advisors, you'll need to interview them to see if they're a good fit for you. Ask about their investment philosophy, their experience in the stock market, and what kind of fees they charge.
Once you’ve made an investment, it’s essential to stay informed about the company and its security. This will help you make decisions about when to buy or sell. You can stay informed by reading financial publications, company filings, and other public disclosures.
There you have it, a complete list of cheap Canadian stocks that are worth considering for your portfolio. While there are no guarantees in the stock market, these companies have solid fundamentals and could be poised for growth in the coming years. As always, be sure to do your own due diligence before investing.
Canadian Cheap Stocks FAQs
What is the best Canadian stock to buy?
Some cheap Canadian stocks that may offer the potential for higher returns include Namesilo Technologies, 5N Plus, and Fobi AI. However, it is essential to note that buying the best Canadian stock will depend on your investment goals and risk tolerance.
What is the best penny stock in Canada?
Some cheap penny stocks include 5N Plus and Fobi AI.
What are the risks of investing in Canada?
The Canadian stock market is considered to be a lower-risk option compared to other markets around the world. However, there are still risks associated with investing in any market, and it is vital to research before making investment decisions.
Can penny stocks make you rich?
Penny stocks are a high-risk investment, but they can also be very profitable. While there is no guarantee that you will make money investing in penny stocks, if you research and invest in well-established companies, you have a good chance of seeing a return on your investment.