What I love about stocks is that one can start investing with as much money as they have. For instance, one doesnât need a lot of cash to buy shares as several high-quality stocks are trading cheap in dollar value and have good growth prospects.
Iâll start with the digital healthcare companyÂ WELL HealthÂ (TSX:WELL). The stock trades incredibly cheap, making it a compelling buy near the current levels. The company has grown its top line despite concerns from tough year-over-year comparisons and economic reopening. Further supporting my bull case is WELLâs ability to consistently deliver profitable growth.Â
The momentum in WELL Healthâs business will likely be sustained in the coming years, led by growing omnichannel patient visits. In addition, the strength in its high-margin virtual healthcare services will support its top- and bottom-line growth. Also, its expansion in the U.S. and accretive acquisitions will accelerate its growth rate and drive its stock higher.Â
Notably, the company surpassed one million patient visits in Q2, which is encouraging. Moreover, its investments in AI (artificial intelligence) will drive clinic productivity and provide better patient outcomes, supporting its growth. While the company is performing well, its stock is trading cheap. It trades at a forward enterprise value-to-sales multiple of 1.7, much lower than the pre-pandemic levels of 5.6, making it a buy near the current price levels.
StorageVault (TSX:SVI) is the leading storage provider in Canada. It operates 240 storage locations across Canada and owns 209 of these locations. Moreover, it has 5,000 portable storage units. In addition, it also provides last-mile storage and professional records management services.
It benefits from the strong demand for rentable storage space. Moreover, its top line marked double-digit growth in the first half of 2023 despite macro challenges.
Looking ahead, its focus on expanding its rentable space and increasing rent per square foot augurs well for revenue and earnings growth. Moreover, its short-duration rentals (weekly or monthly) enable it to manage demand well and form a solid pricing strategy to counter inflation. Overall, StorageVault is well-positioned to deliver strong financials and attractive returns in the long term.
From storage, letâs move to the Canadian tech space. Within the tech sector, investors could consider investing in the shares of Lightspeed (TSX:LSPD). The company provides a cloud-based commerce platform and is poised to gain from the shift in selling models towards omnichannel platforms.
Lightspeed is streamlining its operations and focusing on generating sustainable profitability. It now offers only two core products targeting retailers and restaurant operators and focuses on high-value customers.
The companyâs strategy bodes well for long-term growth and will enable it to drive average revenue per user and achieve a lower churn rate. Moreover, Lightspeed will also benefit from its ability to acquire and integrate companies.Â Â
While Lightspeed has solid growth potential, its stock trades at a discounted valuation, providing an excellent entry point for long-term investors.
Before you consider Lightspeed, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in August 2023… and Lightspeed wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 26 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks
* Returns as of 8/16/23
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