Investing even $500 in the precise shares can provide you entry to outsized returns. So, if that’s all you’ve obtained in the intervening time, relaxation assured. I’ve obtained two Canadian shares which have the precise danger/reward profile to take your funding portfolio to the following degree.
With out additional ado, let’s check out the 2 shares to contemplate investing in proper now.
Ballard Energy Methods: A Canadian inventory with a protracted historical past
Properly, the tide has actually turned for Ballard Energy Methods (TSX:BLDP) in the previous couple of years. After hitting highs of greater than $50 in early 2021, the surroundings 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 gas cell firms like Ballard turning their deal with manufacturing prices, execution, and a drive to cut back the overall price of possession for his or her prospects. The aim right here is to make gas cells aggressive from a value perspective and a efficiency perspective.
In the present day, Ballard Energy is rising to the event. The corporate has no debt, no fast capital wants, and is aiming to be money stream constructive 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 will likely be put to higher use in verticals which are rising properly and performing effectively.
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. Latest July restructuring prices will cut back working prices by one other 30%.
Lastly, Ballard’s backlog at present stands at $84.3 million. With a deal with the precise markets which are 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 constructive worth proposition for purchasers 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 programs by means of know-how, Properly Well being Applied sciences Corp. (TSX:WELL) certain has momentum on its aspect. The healthcare trade is benefitting tremendously from Properly Well being’s know-how, and it reveals 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 stream elevated 34% to $11.7 million.
Wanting 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 present 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 might chubby Properly Well being. This is because of the truth that the danger 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.
