You can begin investing in high-quality Canadian shares even with a modest capital. As an illustration, shares of many basically sturdy TSX shares with strong prospects are buying and selling below $20, making them screaming buys immediately.

Towards this backdrop, listed here are three under-$20 TSX shares to purchase proper now.

Beneath-$20 inventory #1: CES Vitality Options inventory

CES Vitality Options (TSX:CEU) is a compelling long-term inventory buying and selling below $20. The corporate supplies superior chemical options which can be important for oilfields. As North American drilling exercise picks up and extraction strategies develop into extra complicated, CES is well-positioned to satisfy rising demand for specialised chemical substances that increase effectivity and manufacturing.

Its capital- and asset-light enterprise, vertically built-in operations, and counter-cyclical steadiness sheet place it effectively to generate sturdy free money circulate. This permits the corporate to reinvest in progress and improve shareholder worth.

Though geopolitical and commerce uncertainty pose challenges, CES will possible profit from a income base closely weighted towards the U.S., a versatile provide chain, and built-in operations throughout Canada and the US. Furthermore, with its presence throughout all main U.S. basins, growing service depth, and powerful demand developments, CES Vitality Options is poised to ship strong progress and enticing returns for traders.

Beneath-$20 inventory #2: 5N Plus

5N Plus (TSX:VNP) supplies specialty semiconductors and efficiency supplies. Whereas its inventory has surged considerably within the current previous, it nonetheless trades beneath $20 and has appreciable upside potential. The corporate’s merchandise are in excessive demand throughout markets with secular demand developments.

The corporate’s specialty semiconductor phase is especially well-positioned to learn from rising demand from terrestrial renewable power and space-based photo voltaic tasks. The rising demand for clear power, powered by synthetic intelligence and cloud infrastructure, is creating a robust tailwind for scalable photo voltaic options, benefiting 5N Plus.

5N Plus’s acquisition of Germany-based AZUR Area and its rising capabilities have strengthened its place in area functions. Additional, 5N Plus is increasing its photo voltaic cell manufacturing capability, which is able to assist acquire share in industrial, civil, and defence markets. Past power, the corporate’s high-purity supplies are important for medical imaging applied sciences that cut back radiation publicity, and its Efficiency Supplies phase advantages from sturdy demand for bismuth-based prescribed drugs and specialty chemical substances. Additionally, it provides high-purity supplies exterior China, which supplies a strategic edge amid world commerce uncertainties.

With a diversified portfolio, strong provide chain, and publicity to among the fastest-growing industries, this small-cap inventory has the components to ship outsized returns.

Beneath-$20 inventory #3: Lightspeed

Buying and selling below $20, Lightspeed (TSX:LSPD) inventory is just too low cost to disregard close to the present ranges. The cloud-based commerce platform is well-positioned to learn from the continuing shift towards omnichannel retail and its recurring income mannequin.

Regardless of current strain from macroeconomic uncertainties and its resolution to stay public, Lightspeed’s fundamentals stay strong. The Canadian tech firm is specializing in high-potential markets, together with retail shoppers in North America and hospitality clients in Europe. Furthermore, it’s buying higher-value shoppers, which ends up in elevated adoption of its software program modules, boosts transaction volumes, and drives common income per consumer (ARPU) and retention.

Lightspeed can also be strategically bundling POS and funds options. This has strengthened fee penetration and pushed its income. Additionally, the corporate is increasing its footprint and cross-selling merchandise.

With a big addressable market, rising ARPU, give attention to enhancing operational effectivity, and low valuation, Lightspeed is a compelling inventory to purchase immediately.