5 discounted Canadian stocks to buy this quarter

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5 discounted Canadian stocks to buy this quarter

 5 discounted Canadian stocks to buy this quarter
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Highlights 

  • Although some stocks trade at a low price band, they can sometimes have the potential to grow.
  • A Canadian digital healthcare company’s stock rose by 119 per cent over the past year.
  • An electronic firm’s stock spiked by some 32 per cent in the last nine months.

Different investors are known to follow and adopt different styles of investing. While some look for the stocks of large-cap, industry rulers, some investors seek out discounted stocks.

While such discounted stocks often hold certain risk factors that should be evaluated, some of them can also reflect a potential to grow in the future.

So, let us look at some Canadian stocks trading at low price bands.

  1. CloudMD Software & Services Inc. (TSX: DOC)

CloudMD Software & Services, a technology-enabled healthcare company, saw its stocks close at C$ 1.84 apiece on August 11, 2021, trading 46 per cent below its 52-week high of C$ 3.43 (October 22, 2020).

At this closing price, CloudMD stock had dropped about 40 per cent in the last six months, although it was up 119 per cent on a one-year basis.

CloudMD Software posted a revenue of C$ 8.8 million in the first quarter of fiscal 2021, up from C$ 3.1 million in Q1 FY20. Its net comprehensive loss attributable to the shareholders was C$ 5.3 million, or C$ 0.03 per share, in the latest quarter.

The telehealth firm held a debt-to-equity (D/E) ratio of 0.05. 

  1. Exro Technologies Inc. (TSX: EXRO)

The Canadian industrial company produces electronics for generators and electric motors. Its stock, which stood at C$ 3.8 apiece on August 11, was up over 32 per cent for the last nine months and nearly 228 per cent for the past year.

At this closing price, the scrip was also trading nearly 50 per cent below its 52-week high of C$ 7.55 (February 17, 2021) and about 342 per cent above its 52-week low of C$ 0.86 (September 4, 2020).

Exro Technologies stands with a price-to-book (P/B) ratio of 10.

Also read: 10 hot penny stocks to buy in August

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  1. 5N Plus Inc. (TSX: VNP)

5N Plus Inc, a specialty metals and chemical producing company based in Canada, noted a stock price of C$ 2.91 on August 11, where it had surged nearly 27 per cent for the last nine months and by over 48 per cent for the past year.

5N Plus Inc stock reached its 52-week high of C$ 5.01 apiece on March 9, 2021, and was trading 42 per cent below this level when it closed on August 11.

The Canadian enterprise posted a revenue of US$ 47.7 million in Q2 FY21, up from US$ 41.1 million in Q2 FY20. Its adjusted EBITDA was US$ 6.3 million and its net earnings were US$ 2.2 million, or US$ 0.03 per share, in the latest quarter.

5N Plus Inc held an earning per share (EPS) of 0.05 and a return on equity (ROE) of 2.25 per cent.

  1. Baytex Energy Corp (TSX: BTE)

Baytex Energy Corp is an oil and gas company operating in the United States and Canada. The energy stock had returned nearly 304 per cent for the last nine months and 203 per cent for the past year when it closed at C$ 2.18 apiece on August 11.

However, at this closing price, BTE scrip was trading nearly 16 per cent below its 52-week high of C$ 2.59 (July 5, 2021).

Baytex Energy Corp posted adjusted funds flow of C$ 176 million in Q2 FY21, up 12 per cent year-over-year (YoY). Its free cash flow was C$ 112 million in the same quarter.

The oil company produced 81,162 barrels of oil equivalent per day (boe/d) in the latest quarter, which was up 3 per cent YoY.

Baytex Energy held an EPS of 2.17, an ROE of 120.84 per cent, and a return on assets (ROA) of 32.04 per cent.

Also Read: Best stocks under 10 cent to buy now

  1. Greenlane Renewables Inc. (TSX: GRN)

Stocks of Greenlane Renewables, which is known to produce clean and renewable energy from organic waste, closed at C$ 1.83 apiece on August 11, where is was up by 341 per cent on a one-year basis.

The stock, however, was down by 21 per cent on a  year-to-date basis.

Greenlane Renewables posted a revenue of C$ 12.2 million in Q1 FY2021, which was up from that of C$ 2.9 million in Q1 FY2020 by 317 per cent YoY.

Its adjusted EBITDA in the latest quarter was C$ 0.6 million, while its net loss was C$ 0.2 million.

Greenlane Renewables posted a D/E ratio of 0.01.

Botton Line

It should be understood that while some stocks may be performing comparatively well at some point, investing in such markets is subject to considerable risk. A well-informed investor should look at their own risk appetite and risk-return framework before considering to invest.

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