Investing in quality, undervalued Canadian stocks with significant upside potential can help you consistently deliver outsized gains. In this article, I have identified five cheap TSX stocks you can buy now with $5,000. Let’s see why.
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Whitecap Resources stock
Whitecap Resources (TSX:WCP) reported an “exceptional year” for 2024, with consistent production outperformance that led to four guidance increases over the last 12 months. Whitecap’s fourth-quarter (Q4) results showed strong operational and financial metrics, as the company returned over $560 million to shareholders through dividends and share repurchases.
Whitecap highlighted outperformance in key assets, with the Montney asset at Musreau providing over 2,000 BoE (barrels of oil equivalent) per day of outperformance relative to initial budget projections. Its Kaybob assets similarly outperformed initial expectations by 1,500 BoE per day.
Despite rising concerns about potential tariffs on Canadian oil and gas exports to the U.S., Whitecap remains focused on organic development and maintaining balance sheet strength, ending 2024 with $933 million in debt, down by over $450 million since year-end 2023.
Brookfield Renewable stock
Brookfield Renewable (TSX:BEP.UN) reported record operating and financial results for 2024, with 10% FFO (funds from operation) per-unit growth year over year.
“Following several decades of modest electricity demand growth, we are experiencing a dramatic shift in demand driven by the AI revolution,” Chief Executive Officer (CEO) Conor Teske explained. “This is driving a significant step change in demand for our product, supporting our continued and accelerating growth.”
Brookfield Renewable signed contracts for almost 19,000 gigawatt hours per year of generation, including a landmark agreement with Microsoft to deliver 10.5 gigawatts of new renewable energy capacity between 2026 and 2030 in the U.S. and Europe.
Despite recent volatility in renewable energy stocks stemming from U.S. policy uncertainty, Brookfield maintains that energy fundamentals “have never been better” as low-cost renewable technologies represent the cheapest form of electricity production.
VitalHub stock
In Q3 of 2024, VitalHub’s (TSX:VHI) total revenue rose 25% year over year to $16.5 million. Term license maintenance and support revenue grew 28% to $13.9 million, comprising 84% of total revenue.
CEO Dan Malo highlighted the company’s growth through acquisitions, having closed two transactions after the quarter’s end. The acquisitions include MedCurrent for approximately $8.3 million and Strata Health for $32.3 million, the largest transaction in company history.
“We’re proud of our portfolio and excited to have completed two acquisitions subsequent to the quarter, which are a natural fit to our PatientFlow suite,” said Chief Financial Officer Brian Gothenburg, noting that on a pro forma basis, VitalHub’s annual recurring revenue is now $68 million.
goeasy stock
Financial services provider goeasy (TSX:GSY) reported record Q4 results, with loan originations of $814 million, up 15% compared to the same period in 2023. It ended 2024 with a loan portfolio of $4.6 billion, up 26% year over year.
Despite economic challenges, goeasy managed stable credit performance through credit tightening and an increased proportion of secured loans, now representing a record 45.3% of the total portfolio.
Looking ahead, goeasy announced plans to develop a revolving credit card product and introduce auto title and auto refinance products in 2025, aiming to address untapped market segments for nonprime borrowers.
GFL Environmental stock
GFL Environmental (TSX:GFL) reported Q4 revenue of $1.98 billion, exceeding guidance estimates, with 7% solid waste organic growth. For the second consecutive quarter, it achieved 300 basis points of margin expansion.
The previously announced sale of the company’s Environmental Services business is on track to close on March 1. This transaction will accelerate key financial objectives while preserving participation in potential upside through retained equity. Moreover, the transaction should strengthen GFL’s balance sheet, creating capacity for additional acquisitions and share buybacks.
