4 Cheap Canadian Stocks That Can Still Grow Their Earnings Next Year

While economic growth is expected to slow significantly in 2023, these four Canadian stocks are cheap and have significant growth potential.

Throughout the year, numerous Canadian stocks have been falling in value and are now unbelievably cheap as their business operations come under pressure.

Some stocks have lost value because their earnings are expected to be impacted in the short-term. Companies are predominantly losing value because the market environment is shifting, which is why stocks across the board are selling off.

As you’ll see below, there are plenty of opportunities to buy stocks that are cheap today, even though they’re expected to grow their businesses in the short-term. So, if you’re looking for cheap Canadian stocks to buy now, here are four of the best to consider.

A top environmental services stock

GFL (TSX: GFL)(NYSE: GFL) has rapidly become the fourth largest environmental services company in North America, an industry that’s highly defensive and perfect for this environment.

And not only is GFL cheap today, trading roughly 33% off its 52-week high, it’s one of the best Canadian stocks to buy because it’s so reliable and it’s expected to grow its sales by over 17% this year and another 8% next year, which will be achieved both organically and through acquisitions.

Furthermore, its earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to grow over 17% this year and 13% next year. So, if you’re looking for cheap Canadian stocks to buy, GFL is a top choice.

A top growth by acquisition stock

Another of the many Canadian stocks that have recently become cheap is Neighbourly Pharmaceutical (TSX: NBLY). The company has been acquiring independent pharmacies across the country and consolidating the industry under just a few brand names. This is a strategy that has a tonne of potential over the long run.

However, in the short-term, Neighbourly stock has been selling off and is now more than 50% off its 52-week high.

Despite its stock price underperforming, Neighbourly’s business is excelling. In fact, its revenue is expected to grow by roughly 40% this year and by more than 75% next year. In addition, its EBITDA is expected to grow by over 30% this year and by more than 80% next year.

So, if you’re looking for cheap Canadian stocks to buy now, Neighbourly looks like it has a tonne of upside.

A top Canadian tech stock

Shopify (TSX: SHOP)(NYSE:SHOP) stock has been out of favour for almost a year now, and there’s no question that among Canadian tech stocks, it’s extremely cheap.

Its growth has been slowing down since the days of the pandemic, but the stock is still growing. In fact, this year, sales are expected to grow by 19% and next year by nearly 25%.

Furthermore, Shopify is expected to report positive earnings again next year, both on the bottom line and for its EBITDA. So, while this high-quality stock trades severely undervalued, it’s one of the best investments to make today.

A top Canadian retail stock

Many retail stocks have been struggling since the pandemic and continue to face a rough ride in the current market environment. Companies that predominantly sell discretionary items could feel a major impact on their businesses as consumption continues to slow.

However, one stock that continues to impress and beat expectations is Aritzia (TSX: ATZ), the vertically integrated women’s fashion retailer.

Aritzia has been successfully expanding its business in recent years, both with brick-and-mortar stores and through its high-quality e-commerce platform.

So, with the stock continuing to sell off as market conditions worsen, it’s now so cheap that it’s one of the best Canadian stocks you can buy.

Plus, as its value gets cheaper, Aritzia continues to grow. This year, its sales growth is expected to come in at over 75%, while next year, it’s expected to grow sales by another 27%. Plus, it’s expected to earn record earnings per share of $1.53 this year and grow that by nearly 12% next year.

So while Aritzia stock is this cheap, it’s easily one of the best Canadian stocks you can buy today.

Fool contributor Daniel Da Costa has positions in ARITZIA INC. The Motley Fool has positions in and recommends ARITZIA INC and Shopify. The Motley Fool has a disclosure policy.

More on Investing

Runner on the start line
Tech Stocks

2 Stocks I’d Buy for a Year-End Breakout

These two top Canadian growth stocks are delivering strong business growth, making their stocks worth watching as 2026 enters its…

Read more »

the word REIT is an acronym for real estate investment trust
Dividend Stocks

This Industrial REIT Could Be a Quiet Growth Engine

Learn how Granite REIT utilizes a strategic approach to enhance portfolio growth through its diverse industrial properties.

Read more »

woman gazes forward out window to future
Dividend Stocks

The 5 Canadian Stocks So Safe I’d Tell My Mother to Buy Them

These five Canadian stocks combine durable businesses, strong competitive positions, and long-term resilience for cautious investors.

Read more »

man looks surprised at investment growth
Dividend Stocks

These 2 Canadian Dividend Stocks Are Screaming Buys, and I’m Taking The Bait

With reliable business models, stable cash flows, consistent dividends, and healthy growth prospects, these two dividend stocks offer compelling buying…

Read more »

Group of people network together with connected devices
Dividend Stocks

Enbridge Names New CEO Michele Harradence: What Investors Need to Know

Enbridge’s upcoming CEO transition puts Michele Harradence in charge of a company with a $41 billion growth backlog, diversified energy…

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Oil Just Topped $100 a Barrel: 2 Canadian Energy Stocks to Buy Before the Rally Runs Further

Here's why Canadian Natural Resources (CNQ) and another oil sands stock are top Canadian energy stocks poised for massive cash…

Read more »

Man meditating in lotus position outdoor on patio
Dividend Stocks

2 TSX Dividend Stocks Perfect for Patient Investors

With resilient business models, consistent dividend growth, and compelling long-term prospects, these two dividend stocks offer an attractive opportunity for…

Read more »

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada
Dividend Stocks

Is Enbridge Stock Still a Buy With CEO Greg Ebel Retiring?

Enbridge CEO Greg Ebel is retiring and Michele Harradence takes over in 2027. Here is what the leadership change means…

Read more »