Cheap Canadian Stocks: 2 Top Picks to Buy This Week

If you are looking to buy some dirt-cheap Canadian stocks today, these two gold stocks are some of the best opportunities to consider.

| More on:

When it comes to finding cheap Canadian stocks today, they are few and far between. Sure, some are scattered from industry to industry, but many of these come with a lot of risks.

So if you’re an investor that likes to look for value, it can be difficult to invest in this environment. Many of the top stocks are trading at all-time highs, while the cheapest stocks are cheap for a reason.

But there’s one industry for long-term investors that offers incredible value today. Gold stocks continue to trade well undervalued, despite the fact that gold prices haven’t sold off all that much this year.

While there has certainly been some gold sell-off since the pandemic, it continues to trade well above where it was in 2019.

Yet many of these Canadian gold stocks are extremely cheap, despite being profitable at these prices.

There are still many reasons why gold prices can rally too, or at least sustain these higher prices going forward. Massive amounts of stimulus have added a tonne of capital to economies, and already we’ve seen a significant increase in inflation.

So while gold stocks should never be a huge portion of your portfolio, they can play an important role. And there might not be a better time to buy these cheap Canadian stocks than today.

So if you’re looking for the most bang for your buck, here are two of the best gold stocks to buy now.

A top gold stock for growth investors

If you are more of a growth investor, one of the top Canadian stocks to consider today is Equinox Gold (TSX: EQX).

Equinox is one of the top Canadian growth stocks in the gold sector and extremely cheap for investors. Now, trading right around its 52-week low, it’s the perfect time to take a position in a stock like Equinox.

Not only has it been rapidly growing its production in the few short years it has been in operation, but Equinox has also made attractive acquisitions that have helped the company grow even faster.

So it’s not just cheap, but it also offers a tonne of long-term growth potential as it looks to nearly double its production over the coming years, which is why it’s one of the top Canadian stocks to buy now.

While the stock currently trades around $8.50 a share today, the average target price from the eight analysts covering it is $14, which is roughly 70% upside.

Plus, as I mentioned before, it continues to offer some of the best growth potential of any Canadian stock, giving investors a tonne of opportunity over the long term.

One of the cheapest Canadian stocks you can buy

Another high-quality stock offering an incredible opportunity for investors today is B2Gold (TSX: BTO)(NYSEMKT: BTG).

While B2Gold may not offer as much long-term growth potential as Equinox, the top Canadian gold stock is cheap. In fact, it is even cheaper than Equinox and pays an attractive dividend.

B2Gold is currently trading below $5 a share, yet its average target price from the five analysts covering it is about $9.25 for a roughly 90% upside.

That’s an incredible discount, especially for a stock that can offer a safe haven for your capital as the fourth wave of the pandemic starts to hit.

And not only can you buy this top Canadian stock today for dirt-cheap, but it also pays a more than 4% dividend while you wait for it to recover.

So if you’re looking to find the best deals on the market, B2Gold is definitely one of the top stocks to consider.

Fool contributor Daniel Da Costa owns shares of B2GOLD CORP. The Motley Fool has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

Agricultural harvesting at the last light of day, aerial view.
Dividend Stocks

Potash Power Play: Why This Overlooked Commodity Could Be Canada’s Trump Card

Canada’s potash dominance gives Nutrien a strategic edge as trade tensions rise, making this overlooked commodity worth watching closely.

Read more »

running robot changes direction
Stocks for Beginners

Canada Doubles Steel and Aluminum Tariffs to 50%: What it Means for Algoma Steel Investors

Higher tariffs can help a Canadian steelmaker win orders, but they don’t guarantee profits, and Algoma still needs to prove…

Read more »

heavy construction machines needed for infrastructure buildout
Metals and Mining Stocks

Why Algoma Steel Could Be Canada’s Best Tariff-Retaliation Play

Canada’s escalating tariff battle with the United States could give Algoma Steel’s growing focus on domestic plate demand an important…

Read more »

gold prices rise and fall
Metals and Mining Stocks

Down 1% After Earnings, Is Franco-Nevada a Good Stock to Buy Now?

Franco-Nevada stock could be a good long-term hedge for fiat currency and inflation, especially when the stock pulls back meaningfully…

Read more »

panning for gold uncovers nuggets and flakes
Metals and Mining Stocks

Down 5% After Earnings, Is Barrick Gold a Good Stock to Buy Now?

Barrick Gold stock slid after record Q2 production and a $4 billion Newmont deal. Here's whether the pullback is a…

Read more »

bank of canada governor tiff macklem
Metals and Mining Stocks

1 Stock That Could Surge as Canada Launches Tariff Retaliation

Tariffs could tilt more Canadian steel orders toward Algoma, but only if its turnaround and new furnaces deliver in time.

Read more »

investor looks at volatility chart
Stocks for Beginners

The Best Undervalued Stocks I’d Buy Right Now

Two profitable Canadian royalty stocks have slipped into “oversold” territory (RSI below 30), potentially creating a rare clearance moment near…

Read more »

todder holds a gold bar
Metals and Mining Stocks

1 Canadian Stock I’d Buy as Trade Tensions Heat Up Again

As trade tensions between Canada and the U.S. heat up again, this Canadian royalty giant could offer investors the stability…

Read more »