Investing even $500 in the proper shares may give you entry to outsized returns. So, if that’s all you’ve bought in the intervening time, relaxation assured. I’ve bought two Canadian shares which have the proper danger/reward profile to take your funding portfolio to the subsequent degree.
With out additional ado, let’s check out the 2 shares to think about investing in proper now.
Ballard Energy Programs: A Canadian inventory with a protracted historical past
Properly, the tide has actually turned for Ballard Energy Programs (TSX:BLDP) in the previous couple of years. After hitting highs of greater than $50 in early 2021, the atmosphere for Ballard, together with its inventory worth, has turned decidedly adverse.
Altering rules, delayed adoption, and monetary pressures are taking their toll. This has led to gasoline cell corporations like Ballard turning their give attention to manufacturing prices, execution, and a drive to scale back the overall price of possession for his or her prospects. The purpose right here is to make gasoline cells aggressive from a price perspective and a efficiency perspective.
As we speak, Ballard Energy is rising to the event. The corporate has no debt, no instant capital wants, and is aiming to be money circulation optimistic by the tip of 2027. With a purpose to get there, Ballard is evaluating markets that aren’t performing in addition to had been anticipated, such because the heavy truck market. Funding on this vertical is being adjusted decrease. Merely put, a realignment and headcount discount have freed up money that shall be put to raised use in verticals which might be rising properly and performing nicely.
In Ballard’s newest quarter, income elevated 11% to $17.8 million, and its gross margin elevated 24 foundation factors to -8%. This was pushed by decrease manufacturing prices ensuing from the restructuring of the enterprise. Current July restructuring prices will cut back working prices by one other 30%.
Lastly, Ballard’s backlog at the moment stands at $84.3 million. With a give attention to the proper markets which might be working within the close to time period and an enchancment within the firm’s price construction, there appears to be hope. Gasoline cells are nearer than ever to being a optimistic worth proposition for patrons and a money-making enterprise for Ballard.
Properly Well being Applied sciences: This inventory is rallying on record-breaking outcomes
As a digital healthcare firm that’s aiming to digitize and enhance healthcare methods via know-how, Properly Well being Applied sciences Corp. (TSX:WELL) certain has momentum on its facet. The healthcare trade is benefitting tremendously from Properly Well being’s know-how, and it exhibits in Properly Well being’s outcomes.
In reality, within the final 5 years, the corporate’s income has elevated by greater than 1,700% to $920 million in 2024. This has been accompanied by sharp rises in profitability and money flows. In Properly Well being’s most up-to-date quarter, income elevated 57%, earnings per share (EPS) got here in at $0.10, and free money circulation elevated 34% to $11.7 million.
Trying forward, Properly Well being is anticipated to proceed to develop its Canadian clinics enterprise. Present estimates for EPS are $0.22 in 2025, $0.30 in 2026, and $0.36 in 2027. The inventory is at the moment buying and selling at a mere $4.93. Which means it’s buying and selling at solely 13 instances 2027 earnings estimates.
The underside line
If I had been investing $500 in these two Canadian shares, I’d chubby Properly Well being. This is because of the truth that the chance profile for Properly Well being is significantly decrease. This might seem like shopping for 65 shares of Properly Well being for a $320 funding and 50 shares of Ballard Energy for a $180 funding — for a complete funding of $500.
