The TSX Composite Index has trended higher, generating about 26% return over the past year. Despite the index’s strong performance, shares of a few fundamentally strong Canadian companies remain absurdly cheap and undervalued, presenting a solid buying opportunity for long-term investors. With this backdrop, here are four absurdly cheap Canadian stocks worth buying right now.
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Lightspeed stock
Lightspeed (TSX: LSPD) stock trades at attractively low levels, presenting a potential opportunity for investors. Shares of this cloud-based commerce platform provider have lagged the broader market this year, weighed down by macroeconomic uncertainties and concerns over reduced consumer spending. As a result of this pullback, this Canadian tech company is now trading at a next-12-month (NTM) enterprise value-to-sales (EV/sales) ratio of 1.7 and a price-to-sales (P/S) ratio of 2.2—both near multi-year lows.
Despite the stock’s discounted valuation, Lightspeed continues to grow steadily, benefiting from the global shift toward digital commerce. Lightspeed’s revenue growth is driven by a combination of organic sales expansion and strategic acquisitions. Furthermore, Lightspeed’s increasing base of high-value customers, rising average revenue per user, and focus on achieving sustainable profitability position it well for long-term success.
WELL Health stock
Shares of WELL Health (TSX: WELL) are trading absurdly cheap. The Canadian omnichannel healthcare company is growing rapidly, driven by a surge in patient visits across its physical and virtual platforms. Moreover, it consistently delivers solid organic sales and is profitable. Despite its impressive performance, WELL Health stock is currently trading at an NTM EV/sales multiple of 1.8—well below its historical average.
While WELL Health stock is trading at a steep discount, the momentum in its business will likely be sustained, reflecting consistent growth in the Canadian Patient Services business. Further, strategic acquisitions and its growing network of physical and virtual clinics augur well for long-term growth. Additionally, WELL Health’s investment in artificial intelligence (AI)-powered tools and solutions positions it well to capitalize on future healthcare innovations.
BCE stock
Shares of BCE (TSX: BCE), one of Canada’s top communication companies, are trading at an attractive next-12-month price-to-earnings (P/E) ratio of 13, which is at a multi-year low. While heightened competitive activity and macro challenges weighed on BCE stock, its low valuation and strategic focus on driving profitability through efficient subscriber growth and cost optimization make it a compelling investment choice.
BCE is a reliable dividend stock and offers a high yield of over 1.5%. Moreover, the company is likely to gain from investments in fibre network upgrades, fast mobile 5G services, and the growth of its digital advertising, cloud computing, and security services businesses. At current price levels, BCE stands out as a strong option for both income-focused and growth-oriented investors.
goeasy stock
goeasy (TSX: GSY) is an attractive undervalued stock with strong growth potential. This subprime lender has consistently outperformed the broader market with its returns and made its investors rich. Shareholders have also benefited from its steadily growing dividends.
goeasy’s expanding consumer loan portfolio, solid credit underwriting, and geographic growth position it well for sustained earnings growth in the future. New product launches and diversified funding further bolster its outlook. Despite these strengths, goeasy stock trades at a low NTM P/E of 8.8, which is too cheap to ignore considering its double-digit earnings growth rate and dividend yield of over 2.7%.
