5 Cheap Canadian Stocks to Buy Right Now With $5,000

Looking for some bargain priced stocks to add with $5,000? These five stocks could have a rebound year in 2025.

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Canadian stocks have had an exceptional year in 2024. The TSX Index is up 20% in the year. While it might be harder to find investment opportunities that are “cheap,” there are still opportunities if you are vigilant. Here are five attractive undervalued stocks that contrarians can buy with $5,000 right now.

A diversified services provider

Created with Highcharts 11.4.3Calian Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Calian Group (TSX:CGY) has been steadily delivering on its plan to hit $1 billion of revenues. However, so far, the market has not rewarded it accordingly.

In fiscal 2024, Calian grew revenues by 13% to $747 million. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 30% to $86 million. Margins also improved nicely over the year.

Calian made several smart acquisitions that continue to diversify its earnings stream by sector and geography. Yet, its stock is down 18% in the year.

Fundamentals have improved, but its valuation has declined. This dynamic won’t last forever, and Calian is primed for a nice stock rebound.

An undervalued real estate stock

Another stock that is down and out is Minto Apartment REIT (TSX:MI.UN). Its stock is down 17% in the year. The company is likely a victim of tax loss selling at this point.

Yet, if you looked at the REIT’s fundamentals, things are not as bad as it appears. Year-to-date, it has grown cash flow per unit by 11%. It sold off several non-core assets, significantly paid down debt, and increased its distribution (for the seventh consecutive year).

The REIT trades at a 40%-plus discount to the private market value of its apartment property assets. It has a nice 3.5% dividend yield. This REIT could be an attractive value buy, especially if interest rates keep declining.

A top stock for dividends

Created with Highcharts 11.4.3Pembina Pipeline PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Another stock that has recently pulled back is Pembina Pipeline (TSX:PPL). Its stock is down 9% in the past month. Trump’s tariff threats and a weaker-than-expected 2025 guidance are likely culprits for the share decline.

Yet, if it is income that you want, it is income that you will get with Pembina. The company has a very strong balance sheet, and it generates strong free cash flow.

The energy firm’s highly contracted stream of earnings widely protects its dividend. PPL yields 5.2% today. It looks attractive after the recent decline.

A solid blue chip

Another blue-chip stock that looks like a buy is Canadian Pacific Kansas City (TSX:CP). This 140-year-plus company has one of the most competitive rail networks in North America. It has the only line that spans across the continent.  

Its stock has given up almost all its gains in 2024. Investors are worried about the Trump tariff regime. This near-term worry is a long-term opportunity for investors today.

CP has one of the highest projected growth rates amongst rail peers. It has a top management team, a great network, and a fast-improving balance sheet. If you aren’t worried about the Trump effect, now is the time to be opportunistic.

A growth story unfolding

Created with Highcharts 11.4.3Topicus.com PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

If you want some growth in your portfolio, Topicus.com (TSXV:TOI) is one to consider adding. It is the little brother of Constellation Software.

The software juggernaut is consolidating the vertical market software sector in Europe. TOI stock is down 16% since its $140 per share peak in September. While its acquisition pace slowed in 2024, its balance sheet is strong, and it is generating strong free cash flow.

Topicus is primed to accelerate acquisitions next year. There are rumours that it is eyeing other markets, so that could also provide growth opportunities in the years to come.

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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 Robin Brown has positions in Calian Group, Constellation Software, and Topicus.com. The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Calian Group, Canadian Pacific Kansas City, Constellation Software, and Pembina Pipeline. The Motley Fool has a disclosure policy.

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