Value investors who are looking for the best stocks to buy right now are particularly attracted to Canadian penny stocks.
With low share prices and the potential of outsized returns, the best penny stocks in Canada allow investors to diversify their portfolios with stocks that can multiply in value quickly.
This is even more true for American investors, who can stretch the U.S. Dollar further by buying Canadian penny stocks on the TSX and TSXV.
But, how do you know which penny stocks are right for you?
Read on to learn more about some of the best penny stocks to buy now in Canada and how to identify the right opportunities for your portfolio.
How To Buy Canadian Penny Stocks Right Now
When investing in penny stocks in Canada, it is important to do so in a non-registered account. Canadians can open non-registered accounts at several banks, credit unions, and financial institutions, like Wealthsimple, CIBC, Questrade, and more.
While investors will have to pay taxes on their gains, this also allows Canadians to write off potential losses, which helps reduce the overall financial risks involved in penny stock investing.
In four easy steps, residents can receive free cash to invest in the best penny stocks in Canada.
At Questrade, new users can simply sign up, add funds, make a trade, and receive a $50 trade commission rebate to buy their favorite Canadian small-cap stocks.
Check out our step-by-step guide on how to buy Canadian penny stocks right now with Questrade, one of the best investing apps.
- Click here to sign up for a Questrade account
- Fill out the required documents with accurate personal information
- Add funds to your Questrade account
- Receive a $50 trade commission rebate to invest in the best Canadian penny stocks
Ranking The Top 10 Best Canadian Penny Stocks
Looking to find a list of the best Canadian penny stocks to buy right now?
Well, you’ve come to the right place.
The recent bear market for small caps has shown signs of a reversal but there are still plenty of emerging Canadian companies that are undervalued on the Toronto Stock Exchange.
Below, you will find 10 of the best Canadian penny stocks to buy in 2024:
- HIVE Blockchain Technologies (HIVE)
- Sangoma Technologies Corporation (STC)
- American Lithium Corporation (LI)
- Organigram Holdings (OGI)
- BTB Real Estate Investment Trust (BTB.UN)
- CloudMD (DOC)
- FOBI AI (FOBI.V)
- Uranium Royalty Corp (URC)
- FP Newspapers Inc (FP.V)
- Gear Energy Ltd (GXE)
Analyzing The Best Penny Stocks To Buy Now In Canada
The best Canadian penny stocks are often undervalued companies with catalysts for future growth. But, even the best Canadian penny stocks can be volatile investments.
When investing in penny stocks in Canada, it’s important to do your due diligence.
Next, we will take a deeper dive into each of the Canadian companies on our list to see which of the best penny stocks in Canada are worth investing in.
1. HIVE Blockchain Technologies (HIVE)
- Rating: ⭐⭐⭐⭐
- 52 Week Range: 3.65 – 164.25
- Avg. Volume: 405,524
- Market Cap: 543.666M
- PE Ratio (TTM): 6.36
- EPS (TTM): 1.04
- Earnings Date: Nov 14-18, 2024
- Forward Dividend & Yield: N/A
- Ex-Dividend Date: N/A
One of the best stocks to buy in Canada, HIVE Blockchain Technologies (HIVE) is a cryptocurrency mining company listed on the TSX. The company uses 100 percent green energy to mine both Bitcoin and Ethereum.
HIVE has its headquarters in Vancouver with operations across North America and in Scandinavian countries like Sweden and Iceland.
HIVE’s first quarter financial results released on the 16th of August showed that it mined 821 Bitcoin, a 265 percent increase from the 225 Bitcoin it mined a year earlier.
The company explained that the growth is due to an increase in its hash rate.
Hash rate is simply a measure of the speed of mining cryptocurrency, which means HIVE has silently become more efficient. The company’s increasing hash rate makes it attractive, as it increases the amount of bitcoin and ethereum that it can mine over time.
Like other crypto mining companies, the stock price of HIVE Blockchain Technologies generally follows the price of BTC and ETH.
The HIVE share price started the year at about 18 CAD but fell to a low of 3.65 due in part to the crypto bear market. We expect that as the price of Bitcoin and Ethereum rebounds, HIVE should follow the trend, which makes this stock a buy right now.
2. Sangoma Technologies Corporation (STC)
- Rating: ⭐⭐
- 52 Week Range: 9.00 – 29.00
- Avg. Volume: 17,100
- Market Cap: 220.61M
- PE Ratio (TTM): N/A
- EPS (TTM): -0.80
- Earnings Date: Sep 27, 2024 – Oct 03, 2024
- Forward Dividend & Yield: N/A
- Ex-Dividend Date: N/A
Sangoma Technologies provides unified Communications and UC as a Service (UCaaS) solutions to businesses. Its products and services are used in leading Private Branch Exchange, Interactive Voice Response, contact center, carrier networks, and data communication applications worldwide.
The company has solid financials, its 2023 third-quarter results released in March showed that revenue increased by 97 percent to $55 Million year-on-year while the adjusted earnings before interest, tax, and depreciation increased by 96 percent to $10.47 Million year-on-year.
Sangoma Technologies likes to grow through acquisitions. Its recent acquisitions include NetFortris Corporation for $68 Million earlier in March, StarBlue for $437 Million in 2021, and Digium for $28 Million in 2018.
The combination of its solid financials and constant growth through mergers and acquisitions makes this stock one that you should consider when diversifying your portfolio.
3. American Lithium Corp (LI)
- Rating: ⭐⭐⭐
- 52 Week Range: 1.5600 – 6.2500
- Avg. Volume: 413,261
- Market Cap: 527.649M
- PE Ratio (TTM): N/A
- EPS (TTM): -0.1240
- Earnings Date: Aug 02, 2024
- Forward Dividend & Yield: N/A
- Ex-Dividend Date: N/A
One of the greatest global transitions is underway.
The shift to a clean energy economy and lithium is essential to this transition and American Lithium.
American Lithium Corp is a Vancouver-based exploration company, which is engaged in the acquisition, exploration, and development of lithium projects throughout the Americas.
American Lithium is uniquely positioned to enable a North American-based lithium supply chain. Over the last two years, every aspect of its business has been growing.
Some of the company’s projects include Tonopah Claystone Claims (TLC) Lithium Project, Falchani Lithium Project, and the Macusani Uranium Project.
Why is it one of the best penny stocks in Canada?
American Lithium’s Falchani Uranium Project is particularly exciting. It is located in Nevada in the US which is just three hours away from Tesla’s Gigafactory where it produces its lithium-ion batteries.
Tesla just so happens to be the most popular electric car in Canada.
The company started pre-feasibility studies on the project last month.
Lithium is a critical component of electric vehicles.
The price of Lithium has skyrocketed over the last two years years due to the high demand for Electric vehicles, the rising cost of gas and increased adoption of electric cars.
Thanks to the widespread adoption of electric cars, the future looks bright for lithium and American Lithium Corp will benefit from this.
American Lithium also has a diamond drill program currently underway in Tonopah, Nevada, which is expected to help maximize project returns according to CEO Simon Clarke.
4. Organigram Holdings (OGI)
- Rating: ⭐⭐⭐
- 52 Week Range: 1.1700 – 3.2200
- Avg. Volume: 510,908
- Market Cap: 445.465M
- PE Ratio (TTM): N/A
- EPS (TTM): -0.1180
- Earnings Date: Nov 21, 2024 – Nov 25, 2024
- Forward Dividend & Yield: N/A
- Ex-Dividend Date: N/A
The fourth stock on the list of the best penny stocks to buy now in Canada is Organigram Holdings.
Organigram Holdings is a leading provider of high-quality, indoor-grown cannabis for patients and adult recreational consumers.
Unlike other Canadian cannabis companies, OGI takes control of all environmental factors in its indoor facilities to increase yield and maintain the optimal micro-climates for each strain of the plant.
Its primary indoor facility is located in Moncton, New Brunswick. The production facility accounts for 60 percent of its total cannabis harvest and has a total area of over 14 acres.
Organigram produces its edibles and derivatives. In 2021, it secured a deal and acquired the Edibles and Infusions Corp. (EIC), a large retailer in Manitoba. Since then, it has maximized sales and maintained its high quality, which has helped increase brand awareness in the Canadian cannabis market.
For its third quarter ended May 31, the company reported a revenue increase of 87 percent from 29.1 Million CAD to 55.2 Million.
Compared to fellow marijuana producers that have struggled to generate positive revenue growth over the past year, the results of Organigram are rather impressive.
5. BTB Real Estate Investment Trust (BTB.UN)
- Rating: ⭐⭐⭐
- 52 Week Range: 3.4350 – 4.4200
- Avg. Volume: 129,312
- Market Cap: 312.24M
- PE Ratio (TTM): 4.89
- EPS (TTM): 0.7500
- Earnings Date: Aug 30, 2024
- Forward Dividend & Yield: 0.30 (8.31%)
- Ex-Dividend Date: Aug 30, 2024
BTB Real Estate Investment Trust is a commercial REIT that owns and manages 75 properties across Canada.
Those 75 properties represent a total leasable area of approximately 5.8 million square feet, which has helped BTB’s total asset value surpass $1.18 billion.
The recent acquisitions of the company include two industrial properties in June: one in Alberta and one in Montreal.
Not only is this one of the best Canadian penny stocks, but it also pays a consistent dividend payment.
Most penny stocks do not pay monthly dividends, so consider this one a bonus.
Let’s review a few reasons why BTB.UN deserves some consideration for your portfolio.
- A dividend yield of 7.81 percent.
- Gives investors exposure to commercial real estate.
- Unlike other volatile growth-oriented penny stocks, it can be held for the long-term (for passive income).
6. CloudMD Software (DOC)
- Rating: ⭐⭐
- 52 Week Range: 0.3100 – 1.7400
- Avg. Volume: 224,366
- Market Cap: 104.566M
- PE Ratio (TTM): N/A
- EPS (TTM): -0.1310
- Earnings Date: Nov 28, 2024 – Dec 02, 2024
- Forward Dividend & Yield: N/A
- Ex-Dividend Date: N/A
The sixth company on the list of the best penny stocks in Canada is CloudMD Software.
CloudMD is a software technology company that operates a platform to address all points of a patient’s healthcare journey. Since its launch, 620,000 individuals have been on-boarded onto the platform, which helps medical professionals diagnose illnesses, recommend treatment options, and care for their patients.
For a company of its size, CloudMD has solid fundamentals, making it one of the best penny stocks in Canada. As of the 31st of March, it had $47M cash in hand and three different revenue streams. In fact, 65 percent of its revenue is from its Integrated Health Management Platform, 20 percent from its services to clinics and pharmacies, and 15 percent from its Digital Health Services.
CloudMD has also been active on the mergers and acquisitions front.
It had 16 acquisitions last year. The most ambitious of those deals was the acquisition of Mindbeacon Holdings, a digital mental healthcare provider based in Toronto. The $116-million deal expanded the company’s activities toward mental health and the U.S. market.
It reports its second-quarter earnings on Monday the 22nd and is one to watch especially as its shares currently trade at just 38 cents.
7. FOBI AI (FOBI.V)
- Rating: ⭐⭐
- 52 Week Range: 0.3600 – 3.9300
- Avg. Volume: 164,173
- Market Cap: 68.7M
- PE Ratio (TTM): N/A
- EPS (TTM): -0.1320
- Earnings Date: Mar 01, 2024
- Forward Dividend & Yield: N/A
- Ex-Dividend Date: N/A
FOBI AI is a data analytics company that uses real-time analytics to help businesses improve efficiency by increasing margins and reducing costs.
It uses artificial intelligence and machine learning, as well as the Internet of Things.
Unlike most Canadian penny stocks, FOBI AI has a long list of partners that includes Nasdaq, Shopify, Lightspeed, and Square.
It was listed on the stock exchange in 2019 and its price reached an all-time high of CAD 3.93 two years later in 2021, since then it has fallen to about 60 cents but has started to show signs of life.
8. Uranium Royalty (URC)
- Rating: ⭐⭐⭐
- 52 Week Range: 2.7600 – 7.3100
- Avg. Volume: 89,618
- Market Cap: 400.926M
- PE Ratio (TTM): N/A
- EPS (TTM): -0.0480
- Earnings Date: Sep 12, 2024 – Sep 16, 2024
- Forward Dividend & Yield: N/A
- Ex-Dividend Date: N/A
Uranium Royalty Corp. (URC) is a Canada-based uranium-focused royalty and streaming company.
The company is involved in acquiring and assembling a portfolio of royalties and investing in companies with direct exposure to uranium.
It manages a portfolio of geographically diversified uranium interests that may be acquired directly from mine operators or third-party holders of existing royalties.
It has 15 projects in its portfolio and has direct exposure to Uranium through its 3.8 percent stake in the London Stock Exchange listed company; Yellow Cake plc.
The reasons to invest in URC are:
- It’s a first mover pure-play uranium royalty exposure
- Royalty portfolio covers an array of development projects in key jurisdictions with the right partners.
- A Management Team with extensive uranium industry experience, knowledge, and access.
- Nuclear energy is gaining broader acceptance in a carbon-constrained world.
- Robust uranium demand and curtailed mine production have rebalanced market fundamentals.
9. FP Newspapers Inc (FP.V)
- Rating: ⭐⭐⭐
- 52 Week Range: 1.0500 – 1.5000
- Avg. Volume: 6,979
- Market Cap: 7.248M
- PE Ratio (TTM): 8.75
- EPS (TTM): 0.1200
- Earnings Date: Aug 27, 2024 – Aug 31, 2024
- Forward Dividend & Yield: N/A
- Ex-Dividend Date: N/A
In a world that has embraced the internet and the metaverse, it might come as a surprise that FP Newspapers Inc. finds itself on the list of best Canadian penny stocks.
FP Newspapers Inc. is a Canada-based company, which owns securities that entitle it to over 49 percent of the distributable cash of FP Canadian Newspapers Limited Partnership (FPLP).
FPLP owns and operates the Winnipeg Free Press, Brandon Sun, and several other Manitoba-based news and media publications that are available in both print and digital formats.
Compared to other penny stocks, this company is actually quite profitable. It made 1,935,000 CAD of Comprehensive Net Income in 2020 and 866,000 CAD a year later in 2021.
While its comprehensive net income decreased in 2021, it announced a major new investment in press production capacity in Winnipeg. The new equipment will result in significant efficiencies that will reduce production costs and expand the web printing capacity at the Winnipeg facility, which will now be able to perform a wide variety of commercial printing jobs.
This is a stable penny stock with the ability to increase in the future if the company makes major investments.
10. Gear Energy Ltd (GXE)
- Rating: ⭐⭐⭐⭐
- 52 Week Range: 0.6500 – 1.9400
- Avg. Volume: 1,579,361
- Market Cap: 330.461M
- PE Ratio (TTM): 2.98
- EPS (TTM): 0.4300
- Earnings Date: Nov 01, 2024 – Nov 07, 2024
- Forward Dividend & Yield: 0.12 (10.00%)
- Ex-Dividend Date: Sept 14, 2024
Gear Energy is an Alberta-based oil and gas company involved in the acquisition, exploration, development, and production of petroleum and natural gas.
Thanks to the high price of oil in the global market, the company has done a good job of cleaning up its balance sheet. GXE ended the Q2 2023 with a net cash of 10 Million CAD.
It produced an average of 5,899 barrels of oil a day in the second quarter. It finished the quarter with about 57 Million CAD in revenue, which helped it start a monthly dividend payment of CAD 0.01 per share.
The price of the company’s stock has increased by more than 800 percent in the last two years from 15 cents to about 1.20 CAD and as long as the price of oil remains high, this stock will definitely be one to keep an eye on.
Comparing The Best Canadian Penny Stocks To Buy Right Now
| Stock | Ticker |
Rating |
|
HIVE Blockchain Technologies |
HIVE | ⭐⭐⭐⭐ |
| Sangoma Technologies Corporation | STC |
⭐⭐ |
|
American Lithium Corporation |
LI | ⭐⭐⭐ |
| Organigram Holdings | OGI |
⭐⭐⭐ |
|
BTB Real Estate Investment Trust |
BTB.UN | ⭐⭐⭐⭐ |
| CloudMD Software | DOC |
⭐⭐⭐ |
|
FOBI AI |
FOBI.V | ⭐⭐ |
| Uranium Royalty Corp | URC |
⭐⭐⭐ |
|
FP Newspapers Inc |
FP.V | ⭐⭐⭐ |
| Gear Energy Ltd |
GXE |
⭐⭐⭐⭐ |
What Is A Penny Stock In Canada?
We have talked about some of the best Canadian penny stocks, but what exactly qualifies as a penny stock?
The official definition of a penny stock is a security whose stock price is below $5.
At the same time, this does not mean that every stock below $5 is a penny stock or that a penny stock can’t have a stock price of more than $5.
Stocks with a market capitalization of less than $2 Billion are generally viewed as small-cap companies, a term used hand-and-hand to identify penny stocks.
Some popular penny stocks in Canada include Aurora Cannabis, Drone Delivery Canada, and High Tide Inc.
Why Are Canadian Penny Stocks So Cheap?
Penny stocks are cheap because they are risky investments as they have limited resources, don’t generate a lot of cash, and are more prone to volatility.
These stocks are high-risk, high-reward investments.
Every investor hopes to buy a penny stock that moves on to become a mid-cap stock, which are stocks that have a market capitalization between $2 Billion and $10 Billion.
Investors can really get rich when a penny stock becomes a large-cap stock.
While this doesn’t happen often, there are a number of stock market success stories and companies that have helped investors become rich during their growth.
Some penny stocks that went on to become successful companies include:
- Advanced Micro Devices (AMD)
- Apple (AAPL)
- GameStop (GME)
Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD) traded below $5 in 2016 but its share price is now above $95.
Founded in 1969 as a Silicon Valley start-up, AMD began with just dozens of employees before growing into one of the world’s biggest tech companies.
Focused on leading-edge semiconductor products, AMD has set the standard for modern computing by accomplishing major technological achievements and many important industry firsts along the way.
Apple (AAPL)
A company most people wouldn’t associate with ever being a penny stock, Apple has risen to prominence by establishing a brand identity rivaled by only the world’s most recognizable names.
However, the company traded at just $5 during the financial crisis in 2008.
Since then, Apple has grown to become the first US company ever to be valued at $1 trillion.
GameStop (GME)
GameStop is arguably the most famous example of a penny stock that exploded and made plenty of retail investors rich.
In 2020, GameStop traded at a price of about $4 but rose to almost $400 about a year later and now trades at roughly $40.
Investors can take inspiration from these penny stocks that became successful companies when buying the best penny stocks in Canada.
Best Penny Stocks In Canada By Sector
Every sector has the potential for returns, yet each investor is attracted to a different sector depending on their expertise, interests, and overall knowledge.
Below, we’ll break down some of the best penny stocks to buy now in Canada in each sector:
- Energy – Tamarack Valley Energy (TVE)
- Materials – Silvercorp Metals Inc (SVM)
- Industrials – Pyrogenesis Canada Inc (PYR)
- Utilities – TransAlta Corporation (TAC)
- Healthcare – Aurinia Pharmaceuticals Inc (AUPH)
- Financials – Versa Bank (VBNK)
- Consumer Discretionary – Westport Fuel Systems (WPRT)
- Consumer Staples – Village Farms International Inc (VFF)
- Information Technology – Versus Systems Inc (VS)
- Communication Services – Siyata Mobile Inc (SYTA)
- Real Estate – The Real Brokerage Inc (REAX)
What Are The Best Cannabis Penny Stocks In Canada?
In Canada, cannabis was legalized for recreational use in 2018 and the sector has since exploded.
Some of the best Canadian penny stocks in the Cannabis sector are:
- Sundial Growers Inc (SNDL)
- Aurora Cannabis Inc (ACB)
- IM Cannabis Corp (IMCC)
- Greenway Greenhouse Cannabis Corp (GWAY.CN)
Final Thoughts
Remember, even the best Canadian penny stocks to buy in 2024 are risky and volatile so investors should be cautious when investing in these companies.
It is best to allocate only a small proportion of your revenue to the best Canadian penny stocks listed above to guard your portfolio this year.