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Highlights
- Some small-cap stocks can hold more significant growth potential than mid-cap or large-cap stocks.
- WED stock zoomed by almost 12 per cent in three months.
- Nouveau Monde Graphite secured a grant worth C$ 5.75 from the Canadian government.
Some small-cap stocks can hold more significant growth potential than mid-cap or large-cap stocks as it is often believed that companies experience a low growth rate as they grow in size. When considered for long-term gains, such stocks can deliver substantial returns if market dynamics favour them.
Also read: SGML, WED, DE, NFG & QRC: 5 TSXV small-cap stocks for new investors
Here are five Canadian small-cap stocks that investors can add to their portfolios and even Tax-Free Savings Account (TFSA) for future gains. Also, all TSXV stocks mentioned here are under C$ 10.
The Westaim Corporation (TSXV: WED)
Westaim Corporation is an asset management firm that provides long term capital to businesses in the financial service sector. The Canadian financial service firm had cash of US$ 6.6 million as of December 31, 2021, compared to US$ 8.7 million a year ago.
However, its Generally Accepted Accounting Principles (GAAP) profit and comprehensive income surged to US$ 6.7 million in Q4 2022 against a loss of US$ 14.5 million in the prior-year quarter.
WED stock zoomed by almost 12 per cent in three months and seems to have gained investors’ attention since late March, with a current Relative Strength Index (RSI) value of 59.91, based on EODHD/Others findings.
Also read: PRO, NXR, TCN, DRM & MRG: 5 TSX property stocks to buy before it's late
Nouveau Monde Graphite Inc (TSXV: NOU)
Nouveau Monde Graphite, abbreviated as NMG, secured a grant worth C$ 5.75 million for the deployment of its proprietary coating tech from the Canadian government under its flagship program, Sustainable Development Technology Canada (SDTC), in March. With this funding, the graphite company aims to fully integrate its local value chain to support the expanding lithium-ion battery market.
NOU stock slipped by over 46 per cent year-over-year (YoY) and, according to EODHD/Others, recorded an RSI value of 31.83 at the time of writing this.
CGX Energy Inc (TSXV:OYL)
CGX Energy is exploring petroleum and natural gas properties. Recently, the energy company and its joint venture (JV) partner, Frontera Energy Corporation (TSX: FEC), discovered light oil and gas condensate at Kawa-1 Exploration Well in May.
Stocks of CGX Energy jumped by over 48 per cent in 12 months. The oil and gas stock was nearly 71 per cent down from its 52-week high of C$ 4.53 (February 1). As per EODHD/Others findings, OYL scrip had an RSI value at the time of writing this.
Sernova Corp (TSXV: SVA)
Sernova Corp was recognised as one of the Top 50 performers in 2022 on the TSX Venture Exchange in February. The healthcare company held a price-to-book (p/B) ratio of 14.30 at the time of writing this.
According to data taken from EODHD/Others, SVA’s RSI value was at 49.43 as of May 10. The healthcare stock spiked by almost four per cent in the past 52 weeks.
Encore Energy Corp (TSXV: EU)
Uranium is an alternative energy source and is an important element in nuclear power generation. Hence, TSXV uranium companies like Encore Energy can emerge as a key players in the market.
EU stock was up by almost one per cent in the past nine months and held a diminishing RSI value of 32.66, as per EODHD/Others.
Bottomline
Investors have different approaches and risk levels. Hence, considering these two key factors, small-cap stocks can be suitable for investors who have high-risk appetites looking for growth.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
