In this article, we will look at the 10 Best Canadian Stocks to Buy Under $10.
How are Canadian Stocks Performing?
The Canadian stock market had a positive third quarter, following a sluggish start earlier in 2024. The market was driven by domestic rate cuts and rebounding global markets. The BMO S&P 500 Index ETF, iShares Core S&P/TSX Capped Composite Index ETF, and iShares S&P/TSX 60 Index ET have surged over 33%, 20%, and 22% year-to-date, as of November 27.
If we talk about year-over-year headline inflation, it has cooled as per the Bank of Canada’s target rate of 2%. Hence, policymakers have cut rates four times consecutively and another 50 basis points cut is expected in December. The Bank of Canada’s benchmark lending rate stands at 3.75%, while economists are projecting a terminal interest rate of as low as 2%.
The managing director and head of macro strategy at Desjardins Group pointed out that the GST tax break from December 14 to February 15, 2025, will have a high fiscal multiplier, adding a noticeable boost to growth in the first half of 2025. The tax break is to increase consumer spending which has been severely impacted by interest rate increases and high debt levels since 2022. The tax break will allow consumers to buy essentials such as groceries, snacks, and kids’ clothing – all tax-free.
In the long run, the potential trade tariffs pose a wider threat to companies. The newly elected U.S. President Trump has vowed to impose a 25% tax on imports from Canada as well as Mexico. In 2023, the U.S. accounted for more than 75% of exports from Canada.
READ ALSO: Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and Other Stocks.
Canada’s Precious Metal and Mining Industry: The Real Deal
Some of the largest Canadian companies are involved in minerals and mining of rare earth metals, mainly involved in gold and uranium exploration. Canada is also one of the largest producers of rare earth metals including Gold and Uranium. According to the World Gold Council, Canada was the fourth largest producer of gold with a total production of 192 tonnes in 2023. Are you interested in Gold Stocks to Buy Under $30? (Click Here)
In addition, Canada was the second largest Uranium producer in 2022, accounting for a total production of 7,351 tonnes, as per the World Nuclear Association. Cigar Lake was the largest operational highest-grade Uranium mine, located in northern Saskatchewan, Canada.
With that, let’s take a look at the 10 Best Canadian stocks to buy under $10.
Our Methodology
To compile our list of the 10 best Canadian stocks to buy under $10, we scanned Canadian stocks through Finviz Screener using two indicators. We shortlisted the stocks with a share trading price of under $10 and market capitalization of more than $1 billion trading on U.S. stock exchanges. From that list, we narrowed our choices to the 10 stocks that are widely held by hedge funds, as of Q3 2024. The list is ranked in ascending order of hedge fund sentiment, as of the third quarter.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Canadian Stocks to Buy Under $10
10. Sandstorm Gold Ltd. (NYSE:SAND)
Number of Hedge Funds Holders: 18
Share Price as of November 27: $5.83
Sandstorm Gold Ltd. (NYSE:SAND) is a precious metals-focused streaming and royalty firm headquartered in Vancouver, British Columbia, Canada. Sandstorm focuses on acquiring royalties and gold alongside other metals purchase agreements from companies that have advanced-stage operating mines. The company owns more than 230 royalties, out of which 41 mines are producing.
During the third quarter of 2024, the company posted revenue of $44.7 million, up from $41.3 million in Q3 2023. The company’s net income was reported to be around $5.8 million compared to $0.01 million a year ago. Driven by strong commodity prices, Sandstorm Gold Ltd. (NYSE:SAND) generated record operating margins for the third consecutive quarter. In the next five years, the company expects significant growth with production to reach nearly 125,000 attributable gold equivalent ounces. This production outlook is solely based on streams and royalties that Sandstorm has purchased and paid for.
Sandstorm Gold Ltd. (NYSE:SAND) has reduced its debt from $640 million to $369 million and plans for further reduction, making its financial condition stronger. The company’s Greenstone project is on the verge of commercial production which would contribute significantly to its future production outlook.
9. IAMGOLD Corporation (NYSE:IAG)
Number of Hedge Funds Holders: 18
Share Price as of November 27: $5.39
IAMGOLD Corporation (NYSE:IAG), based out of Toronto, is an intermediate gold producer and developer. The gold mining firm focuses on the exploration, development, and operation of gold mining properties in North America and West Africa. The company is also involved in non-gold metals with segments including the Cote Gold project, Exploration, Evaluation, and Development, and Corporate, which includes royalty interests. The Burkina Faso segment is where the company makes the majority of its revenue.
IAMGOLD Corporation (NYSE:IAG) has had robust growth in the last few years, mainly driven by its explorations and rising prices of gold. In Q3, the company reported a noticeable revenue growth of 96% from a year ago, mainly driven by year-to-date gold production of 490,000 ounces. The company’s segments at Westwood and Essakane have added to IAMGOLD’s impressive performance. The company’s improving operating performance has increased overall guidance for the year.
In addition to that, the company obtained significant commercial production metrics at the Côté Gold Mine, which improved the outlook for cash flow. By the end of Q3, the company had $511.4 million in cash and cash equivalents, reflecting a strong financial position. To further enhance its production capacity and financial flexibility, IAMGOLD Corporation (NYSE:IAG) repurchased a 9.7% stake in Côté Gold from Sumitomo.
8. Veren Inc. (NYSE:VRN)
Number of Hedge Funds Holders: 22
Share Price as of November 27: $5.25
Veren Inc. (NYSE:VRN) is an oil producer with assets in central Alberta and southeast and southwest Saskatchewan. The company’s primary activities involve acquiring, developing and holding interests in petroleum and natural gas properties and assets. The company’s core operational areas include Kaybob Duvernay and Alberta Montney, Shaunavon and Viewfield Bakken.
Veren Inc. (NYSE:VRN) shares have plunged over 24% year-to-date, as of November 27. The dip in shares is mainly due to investors not being happy from the lag in the company’s production in 2024 so far. As per the company’s guidance, it expects an average production of 191,000 barrels of oil equivalent per day in 2024, down from previous guidance of between 191,000 to 199,000 barrels per day. In 2025, Veren also anticipates production to fall short of analysts’ forecast and projects to produce 188,000 to 196,000 barrels per day.
In the long run, the company has allocated 85% of its 2025 budget to its core assets including short-cycle Kaybob Duvernay and Alberta Montney. In the next five years, Veren Inc. (NYSE:VRN) expects its annual average production to grow to 250,000 barrels per day, mainly driven by Alberta Montney and Kaybob Duvernay assets. Veren Inc. (NYSE:VRN) is one of the most liked Canadian stocks by institutional investors.
7. Denison Mines Corp. (NYSE:DNN)
Number of Hedge Funds Holders: 23
Share Price as of November 27: $2.30
Denison Mines Corp. (NYSE:DNN) is a uranium exploration and development company with its main operations in the Athabasca Basin region of northern Saskatchewan, Canada. The company holds a 95% interest in the Wheeler River Project, which is its flagship uranium project. Denison Mines also owns a 22.5% ownership interest in the McClean Lake joint venture, which operates several uranium deposits and the McClean Lake uranium mill. The McClean Lake Mill has an annual licensed production capacity of 24 million pounds of uranium annually.
Denison Mines Corp. (NYSE:DNN) has innovative in-situ recovery (ISR) mining techniques, allowing the firm to reduce environmental impact while ensuring efficient uranium extraction. The company’s In Situ Leach (ISL) method is one of the cost-effective methods of uranium mining. This mining method involves dissolving the uranium minerals in place without physically removing the ore from the ground, thus minimising its cost.
Denison Mines Corp. (NYSE:DNN) is one of the largest Uranium mining companies in Canada. The U.S.’s highest uranium import was from Canada in 2023. Moreover, the U.S. has banned uranium imports from Russia, which makes the U.S. find an alternate route for uranium supply. This could be a catalyst for Denison Mines in the coming quarters, however, potential trade tariffs can be a threat to exports.
In addition, Denison Mines is creating three uranium exploration joint ventures with Cosa Resources in the eastern part of the Athabasca Basin, northern Saskatchewan. Denison Mines Corp. (NYSE:DNN) will maintain a minimum 30% direct interest in the properties and become Cosa’s largest shareholder. In Q3, DNN was held by 23 hedge funds with stakes worth $88.09 million. Point72 Asset Management is the largest shareholder in the company with a stake worth $17.58 million.
6. New Gold Inc. (NYSE:NGD)
Number of Hedge Funds Holders: 23
Share Price as of November 27: $2.74
New Gold Inc. (NYSE:NGD) is a leading gold mining company based in Toronto, Canada. The company has two core-producing assets including the Rainy River gold mine and the New Afton copper-gold mine. New Gold is focused on the acquisition, exploration and development of natural resource properties. In the third quarter of 2024, the company reported a record quarterly free cash flow of $57 million, reflecting strong financial performance. New Gold Inc. improved its production by 40% compared to Q2 2024, while decreasing its sustaining costs by 13%.
New Gold Inc. (NYSE:NGD) has achieved guidance for eight consecutive quarters, driven by production improvement of its both mines. The company projects to achieve 600,000 ounces of gold equivalent production in fiscal year 2024, up by 42% compared to FY2023. According to the Heartland Value Fund, NGD is on track to surpass AISC by more than 50% by 2026. If you want to know what the investment firm further said about NGD, the copy of investors letter can be downloaded here.
Jim Simons’ Renaissance Technologies increased its stake in NGD by 13% in Q3 from Q2 and now holds 22,526,464 shares valued at $64.87 million.
5. Algonquin Power & Utilities Corp. (NYSE:AQN)
Number of Hedge Funds Holders: 25
Share Price as of November 27: $4.88
Algonquin Power & Utilities Corp. (NYSE:AQN) primarily operates in the North American market with over 1.2 million customers. The company is based in Oakville, Ontario Canada with a focus on international generation, transmission, and distribution in the utilities market. The company has two segments: the Regulated Services Group and the Renewable Energy Group.
The company is heading towards becoming a pure-play regulated utility, simplifying its business structure. With the announcement of the sale of its renewables business for up to $2.5 billion, the company will have significant capital to invest in future ventures. To improve its customer service and back-office processes, Algonquin Power & Utilities Corp. (NYSE:AQN) has implemented a new SAP-based IT platform.
During the third quarter of 2024, the company showed notable improvement with year-over-year revenue growth of 1% to $573.20 million, while the adjusted EBITDA improved by 4% from a year ago. Algonquin Power & Utilities Corp.’s (NYSE:AQN) new CEO is focused on reducing costs and enhancing profitability, with emphasis on “capital-light growth” via better regulatory coverage and rate reviews. The company has filed several rate cases from which it expects the potential rate base to increase by more than $700 million.
4. Bausch Health Companies Inc. (NYSE:BHC)
Number of Hedge Funds Holders: 30
Share Price as of November 27: $8.12
Bausch Health Companies Inc. (NYSE:BHC), based out of Laval, Quebec, Canada, is a global diversified pharmaceutical company. The company manufactures and sells a range of products in gastroenterology, hepatology, neurology, dermatology, and international pharmaceuticals.
The company’s Salix segment consists of sales in the U.S. of its gastroenterology products, while the company’s Solta Medical segment consists of global sales of Solta Medical aesthetic medical devices. In addition to that, the company’s Bausch + Lomb segment takes care of global sales of Vision Care, surgical and pharmaceutical products.
Bausch Health Companies Inc. (NYSE:BHC) reported a sixth consecutive quarter of year-over-year growth, as of Q3 2024. The company posted revenue of $2.51 billion, up by 12% from a year ago, while the adjusted EBITDA soared by 10% to $909 million. The company’s Salix segment, particularly XIFAXAN, improved its sales by 7% from a year ago, showing strong performance. The sales of the International segment delivered 8% organic growth. Whereas, the Solta Medical segment obtained 36% organic growth year-over-year due to strong demand in South Korea and China.
Despite the improvements in quarterly results, the company continues to face Hatch-Waxman litigation, posing potential legal challenges. However, Steven Tananbaum’s GoldenTree Asset Management had added 32% of BHC’s shares to its portfolio in the third quarter and now has a stake valued at $239.55 million in Bausch Health Companies Inc. (NYSE:BHC).
3. NexGen Energy Ltd. (NYSE:NXE)
Number of Hedge Funds Holders: 32
Share Price as of November 27: $8.31
NexGen Energy Ltd. (NYSE:NXE) is a uranium development company with a focus on delivering clean energy fuel for the future. The company is engaged in the acquisition, exploration and evaluation, and development of uranium properties in Canada. The company is mainly focused on its flagship project, the Rook I, located in Southwestern Saskatchewan, which is also the largest development-stage uranium project in Canada. NexGen Energy Ltd. (NYSE:NXE) fully owns the Rook I property, which is known as the largest low-cost uranium mine globally.
On November 19, NexGen Energy Ltd. (NYSE:NXE) announced the final approval of a federal technical review for its Rook I Uranium Project. This is a significant development for the company as it brings it a step closer to obtaining the necessary permissions to proceed. This will not only assist the company in the coming years but also re-establish Canada’s path to becoming a leader in global uranium supply and partner of choice.
Furthermore, the company has completed its 2024 drilling campaign on Rook I at Patterson Corridor East (PCE). The program at PCE has confirmed a high-grade subdomain within the mineralized zone, expanding NexGen’s exploration portfolio. The company expects further drilling and assays during Q4 2024 and Q1 2025.
2. Hudbay Minerals Inc. (NYSE:HBM)
Number of Hedge Funds Holders: 35
Share Price as of November 27: $8.77
Hudbay Minerals Inc. (NYSE:HBM) is a diversified mining company, with a core focus on copper mining. The company is engaged in the exploration, development, operation, and optimization of properties in North and South America. Hudbay Minerals Inc. (NYSE:HBM) owns 75% of the Copper Mountain Mine, which is located south of Princeton, British Columbia.
To increase its operational efficiency and output, the company is aiming to stabilize and optimize its operations. Hudbay Minerals Inc. (NYSE:HBM) has successfully extended the life of its Constancia mine in Peru by 3 years to 2041. This shows the company’s execution capability to improve ongoing value from the existing assets and provide a long-term production outlook.
During the third quarter of 2024, Hudbay Minerals Inc. (NYSE:HBM) reported strong financial and operational performance. The company continues to improve its free cash flow and reduce its debt. Over the past 12 months, the company has reduced its net debt by over $500 million. In addition to that, Hudbay reported record gold production in Manitoba, driven by new quarterly record throughput levels at the New Britannia mill.
As of Q3 2024, Waratah Capital Advisors has increased its stake in HBM by 29% from the previous quarter and now owns 7,061,411 shares valued at $64.95 million.
1. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Funds Holders: 41
Share Price as of November 27: $9.80
Kinross Gold Corporation (NYSE:KGC) is one of the largest gold mining companies based out of Canada. The company has operations across the Americas, West Africa, and Russia. Kinross focuses on high-quality, low-cost gold development projects including the Great Bear project in Ontario, the Manh Choh project in Alaska, and the Lobo-Marte project in Chile, all driving its future growth and expansion.
In Q3, the company increased its operating margins by 14% compared to Q2. This helped the company with a record quarterly free cash flow of $415 million. The increase in cash flows has allowed the company to repay its debt, repaying $650 million out of the $1 billion term loan. Kinross Gold Corporation’s (NYSE:KGC) focus on cost-effective and high-quality gold production allows the company to generate strong cash flows.
In addition to the company’s strong quarterly performance, on November 19, Kinross Gold Corporation (NYSE:KGC) announced that it has further increased the size of its flagship White Gold project in west-central Yukon, Canada. The company’s latest update on the asset will have a significant increase in total gold ounces, including an 18.5% rise in inferred resources and a 4.3% increase in indicated resources. The indicated resource category will now comprise 1.2 million ounces of gold, while the inferred resource category will account for 1.11 million ounces of gold.
While we acknowledge the potential of Kinross Gold Corporation (NYSE:KGC) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KGC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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