Investing in Canadian shares beneath $50 can really feel a bit like discovering hidden gems. With $700 to allocate, it’s essential to seek out firms that not solely have robust observe information but in addition a transparent path to future development. Proper now, three names stand out as no-brainer buys. They’re Hydro One (TSX:H), Lightspeed Commerce (TSX:LSPD), and CES Vitality Options (TSX:CEU). These Canadian shares supply a pleasant stability between stability, innovation, and revenue. That is precisely what you need when stretching each greenback.
Hydro One
Beginning with Hydro One, it’s about as regular as they arrive. Hydro One handles 98% of Ontario’s high-voltage electrical energy transmission and serves about 1.5 million clients. In its most up-to-date fourth-quarter 2024 earnings report, Hydro One posted web revenue of $200 million, up from $181 million the yr earlier than. Earnings per share (EPS) got here in at $0.33, a pleasant leap from $0.30. Income was additionally increased due to accepted price will increase, and Hydro One saved a good lid on working bills.
This mixture of dependable income, modest development, and cautious spending is precisely what makes Hydro One such a dependable inventory. Add in a dividend that at the moment yields round 2.5%, and you’ve got an ideal utility play for anybody who values regular revenue together with gradual and regular capital appreciation.
Lightspeed Commerce
Turning to a extra growth-oriented story, Lightspeed Commerce is one other prime Canadian inventory. Primarily based in Montreal, Lightspeed provides point-of-sale and e-commerce software program for retail, hospitality, and golf companies world wide. In its third quarter of fiscal 2025, Lightspeed reported income of $403.1 million, reflecting robust demand for its Unified Funds and point-of-sale methods. EPS got here in at $0.17, beating estimates of $0.15.
Sure, the Canadian inventory continues to be working at a web loss over the trailing 12 months, however the story right here is about constructing scale. Lightspeed has been rising its buyer base whereas enhancing its take price. This measures the portion of transactions processed by means of its fee platform. With $702 million in money and no vital debt due till 2029, Lightspeed has the stability sheet power to journey out any financial bumps and proceed increasing. Its subsequent earnings are set to come back out on Might 22, 2025 and will supply much more proof that the turnaround plan is gaining traction.
CES
Lastly, CES Vitality Options brings a novel twist to this trio. It’s not a standard oil and gasoline inventory. As a substitute, CES provides specialised consumable chemical options utilized in drilling, manufacturing, and different phases of oil and gasoline operations. Within the fourth quarter of 2024, CES posted income of $605.4 million, up 9% from the yr earlier than. Even higher, the Canadian inventory achieved document quarterly adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) of $103.2 million, with a wholesome margin of 17%.
CES additionally introduced a dividend improve to $0.043 per share, displaying its confidence in future money stream. Not like some vitality firms which are hostage to swings in oil costs, CES focuses extra on regular, recurring gross sales to producers. This helps defend it from the worst of commodity cycles. It has a powerful presence throughout North America, together with key U.S. shale basins. It additionally continues to put money into innovation, notably round greener chemical formulations. CES looks like a wise option to get publicity to the vitality sector with out taking over outsized danger.
Backside line
If I had $700 to take a position proper now, I might break up it roughly evenly between these three shares. Hydro One would give me dependable revenue and decrease volatility. Lightspeed would supply a shot at vital capital development because it scales its enterprise and heads towards profitability. CES Vitality Options would add a pleasant mixture of revenue and publicity to the vitality sector, however with out betting the whole lot on oil costs staying excessive.
Every of those Canadian shares brings one thing totally different to the desk, however what all of them share is a powerful case for outperforming over the subsequent few years. With costs nonetheless properly beneath $50, it’s a uncommon alternative to construct a stable, diversified basis with out breaking the financial institution. It’s the type of funding plan that would actually repay over the lengthy haul, all whereas protecting your portfolio balanced and somewhat bit extra thrilling.
