2 Top TSX Bargain Stocks That Could Be Ready for a Bull Run

These 2 TSX stocks are already rallying on recent results that have been stronger than expected.

| More on:
stock market

Image source: Getty Images

A bull run is defined as a time of stock price increases driven by strong demand and high confidence. In this article, I will explore two bargain stocks that are, in fact, setting up for a bull run. This run is being driven by strong results, coupled with low valuations.

Without further ado, here they are.

Agnico-Eagle Mines

Despite the fact that Agnico-Eagle Mines Ltd. (TSX:AEM) is one of the top-quality gold mining operations out there, its stock has been pretty underwhelming. Even though the price of gold has increased 30% in the last three years, Agnico’s stock price is pretty much flat.

But today, things are changing. I believe that the qualities of this company are more attractive to investors today than ever. You see, Agnico is a low-risk gold miner, with all of its mines located in politically safe, pro-mining jurisdictions. This includes places like Canada, Europe, Australia, and Mexico. It’s a strategy that always had clear value, but today, with increased geopolitical risks globally, it’s all the more relevant and valuable.

At the time of writing, Agnico-Eagle stock is up approximately 4% so far. It’s rallying off of another strong quarter that once again beat expectations and reminded investors what a high-quality gold stock this is. The company’s first quarter adjusted earnings per share (EPS) came in at $0.76 compared to consensus expectations that were calling for $0.65. This compares to $0.57 last year and amounts to a 33% growth rate.

This was driven by strong production, which increased 8% to 879,000 ounces, and lower depreciation and tax expense. Looking ahead, Agnico-Eagle is expected to continue to benefit from strong production and operational performance. Estimates for this year have already been going up, a reflection of the low expectations (and valuation) that investors have put on the stock. At this time, 2024 EPS is expected to come in at $2.65 versus $2.23 in 2023, for a 19% growth rate.


As one of the most undervalued and underappreciated stocks on the TSX today, Cineplex Inc. (TSX:CGX) is a real bargain that I believe is setting up for a bull run.

I believe this for two main reasons. The first is the fact that the pandemic is behind us and Cineplex is on the road to recovery. Whatever Cineplex had control over, even during the pandemic years, was managed well – it’s a high-quality company with high quality management.

The second reason is because the negative effect of the writer’s strike is largely behind Cineplex. Last year, the writer’s strike really hit the movie content slate, which had a negative effect on attendance.  Today, high-quality movies are back, and the audiences are there for it, as is reflected in the latest box office numbers.

Box office revenue increased 46% to $59.2 million. This was 95% of 2019, pre-pandemic levels, and 146% of 2023 levels. This stellar performance was the result of good movie content, such as Dune: Part 2, Godzilla x Kong, and Kung Fu Panda 4.

Despite all of this, Cineplex stock’s valuation remains in depressed, ultra-undervalued territory. It’s trading at 18 times this year’s consensus EPS expectation, and 9 times 2025’s consensus EPS expectation. It actually suggests that Cineplex’s earnings will not recover back to pre-pandemic levels.

But this, as we have seen, is not true. First of all, March’s box office revenue was 95% of pre-pandemic levels. Also, attendance levels confirm that the movie-going experience is still very much in demand.

Cineplex stock is up 15% in the last month and still trades at a very depressed 10 times 2025 consensus earnings expectation.

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 Karen Thomas has a position in Agnico-Eagle and Cineplex. The Motley Fool recommends Cineplex. The Motley Fool has a disclosure policy.

More on Investing

Target. Stand out from the crowd

The Best Stocks to Invest $2,000 in Right Now

Despite the uncertain outlook, these three stocks would be excellent additions to your portfolios.

Read more »

financial freedom sign
Dividend Stocks

RRSP Secrets: 3 Millionaire Strategies Revealed

The RRSP helps Canadians save for retirement and proper utilization can make you a millionaire over time or when you…

Read more »

dividends grow over time
Dividend Stocks

3 Fabulous Dividend Stocks to Buy in April

If you're looking to boost your passive income while interest rates are elevated, here are three of the best dividend…

Read more »

calculate and analyze stock
Dividend Stocks

2 Top TSX Dividend Stocks That Still Look Oversold

These top TSX dividend-growth stocks now offer very high yields.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

Beginner Investors: 5 Top Canadian Stocks for 2024

New to the stock market? Here are five Canadian companies to build a portfolio around.

Read more »

Increasing yield
Dividend Stocks

Want to Gain $1,000 in Annual Dividend Income? Invest $16,675 in These 3 High-Yield Dividend Stocks

Are you looking for cash right now? These are likely your best options to make over $1,000 in annual dividend…

Read more »

Dividend Stocks

Passive-Income Investors: The Best Telecom Bargain to Buy in May

BCE (TSX:BCE) stock may be entering deep-value mode, as the multi-year selloff continues through 2024.

Read more »

edit Safe pig, protect money
Dividend Stocks

3 Safe Dividend Stocks to Own for the Next 10 Years

These Canadian dividend gems could help you earn worry-free passive income over the next decade.

Read more »