Urgent Update: 2 TSX Stocks Under $20 to Buy Right Now

URGENT UPDATE: Two promising TSX stocks are currently trading under $20, presenting a unique investment opportunity for savvy investors looking to capitalize on lower-priced, high-quality small-cap stocks. As of October 2025, these stocks could shape your portfolio for the better.

First up is Xtract One Technologies (TSX:XTRA), with a market cap of $175 million. The company specializes in AI-powered threat detection systems, crucial for enhancing security at venues like stadiums and schools. Despite reporting lower-than-expected third-quarter results—revenue dipping to $3.5 million from $4.7 million year-over-year—Xtract One is pivoting to larger Fortune 100 clients. This strategic shift is expected to yield more substantial contracts, albeit with longer sales cycles.

The company’s One Gateway product has already secured orders worth $6.7 million from five customers, with average deal sizes significantly larger than previous contracts. Management anticipates a massive market opportunity, estimating a potential $15 billion to $30 billion market in K-12 schools alone. Currently, Xtract One has a backlog of $36.5 million and is forecast to generate $30 million in revenue for fiscal 2025, marking a projected 100% increase year-over-year.

Next is Vecima Networks (TSX:VCM), which recently reported a challenging fiscal year ending June 30, 2025. Despite flat revenue, the company is making strategic progress in its segments, including video and broadband solutions. Fourth-quarter revenue reached $68.8 million, a slight increase of 7.5% sequentially but down 21% year-over-year due to customer network upgrades.

Vecima secured a multi-year vCMTS agreement with Cox Communications, positioning itself as a leader in next-generation technology. Analysts project Vecima’s free cash flow could surge to $63 million by fiscal 2030, a remarkable turnaround from an outflow of $29 million in fiscal 2024. If VCM stock is valued at ten times its free cash flow, it could rise over 150% from current levels.

Both companies are navigating challenging market conditions but are positioning themselves for potential growth and profitability. Investors are urged to watch these stocks closely as they could be key players in their respective markets.

WHAT’S NEXT: With the market conditions shifting rapidly, these stocks are poised for potential growth. Investors should stay informed on upcoming earnings reports and strategic announcements from both companies.

Don’t miss out on this opportunity to enhance your investment portfolio with these promising TSX stocks under $20. Time is of the essence—make your move now!