3 Undervalued Canadian Stocks Worth a Buy Right Now

These Canadian stocks remain highly underrated, given their future path to growth and past performance that remains incredibly strong.

| More on:
four people hold happy emoji masks

Source: Getty Images

There are so many Canadian stocks trading below where they should be right now. However, it’s important to remember that coming out of any downturn, there are usually a solid amount of growth stocks that tend to climb faster than the rest.

In this case, there are three undervalued Canadian stocks I would consider first and foremost. These companies are likely to explode out of any downturn, recession or otherwise. That’s based on a strong path to even more revenue in the near and distant future. So, here are the three Canadian stocks I would consider today.


Cargojet (TSX:CJT) is a strong choice for long-term income because it’s set itself up for long-term revenue growth. Cargojet stock currently has partnerships with companies like DHL that are set to last several years. These partnerships have turned the overnight cargo carrier into an international sensation. And at a time when fast shipping is desperately needed.

And yet Cargojet stock remains one of the Canadian stocks that is undervalued, in my opinion. Given the potential for future growth, as the company creates more partnerships, ships more products, and adds more aircrafts, its share price is simply too low.

Shares are down 23% year to date, but that’s not based on anything the company has done. Earnings continue to come in strong and should do so in the near future as well. So, investors would do well to pick up the company while it trades at 7.82 times earnings and add on a nice, little 0.87% dividend yield.

goeasy stock

goeasy (TSX:GSY) is another company that doesn’t deserve the downfall it’s gone through. goeasy stock has been blamed for being a tech stock. But it’s been growing far beyond earnings estimates for years now. Plus, it actually has decades of growth behind it — something you simply don’t see from other tech companies.

goeasy stock is now one of the few Canadian stocks seeing massive growth, even at a time when loans are down. During its latest earnings report, it saw year-over-year loan growth of 117%! It also achieved record revenue growth for the quarter. That’s saying a lot considering it’s been around since 1990.

Shares of goeasy stock are down 32% year to date, even after these stellar earnings. Right now, I would certainly consider buying this stock while it trades at just 12.6 times earnings and lock in the dividend yield of 3.02%.

WELL Health

Finally, while WELL Health Technologies (TSX:WELL) may not have a dividend, it’s one of those tech stocks that could very well add one in the years to come. This comes from being a strong company that continues to expand and create more revenue quarter after quarter.

Here’s another one that’s been dubbed a tech stock. WELL has seen a massive drop in share price this year, down 38.7% year to date as of writing. Yet again, this is not due to the company’s performance. It continues to post record revenue results and is currently the largest outpatient clinic in Canada.

While some may believe that telehealth will slip away after the pandemic, WELL stock has proven this simply isn’t the case, with more clients using it than ever. So, this is certainly one I would consider for long-term growth. It is an underrated Canadian stock to buy now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Cargojet and Well Health Technologies. The Motley Fool has positions in and recommends Cargojet. The Motley Fool has a disclosure policy.

More on Tech Stocks

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Why Open Text Stock Rose 11% Last Month

Not all tech stocks are performing poorly. In fact, Open Text stock (TSX:OTEX) continues to rise higher, though it's still…

Read more »

Businessman holding AI cloud
Tech Stocks

2 AI Stocks to Watch in February 2023

Those looking to invest in AI stocks can consider companies such as Nvidia and CrowdStrike Holdings right now.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Better Buy: Shopify Stock vs. Lightspeed Stock

Shopify (TSX:SHOP) stock and Lightspeed (TSX:LSPD) stock both had their time in the sun, but which will feel the heat…

Read more »

online shopping
Tech Stocks

Why Shopify Stock Skyrocketed Nearly 40% in January 2023

Here are some key factors that make SHOP stock worth buying right now, despite its 40% rally in January 2023.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Better Buy: Shopify Stock or Amazon?

Let's see which e-commerce stock is a better buy between Shopify and Amazon in 2023 and beyond.

Read more »

Businessman looking at a red arrow crashing through the floor
Tech Stocks

3 Growth Stocks Down Over 50% That Are Screaming Buys in January 2023

Given their healthy growth prospects and discounted stock prices, these three growth stocks could deliver superior returns over the next…

Read more »

New virtual money concept, Gold Bitcoins
Tech Stocks

These 2 Stocks Carry a Lot of Risk, But Their Upside is Huge

If you want windfall gains, you have to risk losing what you invest. These two stocks with disruptive technology could…

Read more »

Money growing in soil , Business success concept.
Tech Stocks

3 Growth Stocks Down More Than 50% to Buy for Outsized Gains in 2023

Beaten-down growth stocks such as Shopify provide investors the opportunity to derive exponential gains once market sentiment improves.

Read more »