Investors looking to increase their exposure to the equity markets in 2025 should consider owning stocks that are growing steadily while trading at a reasonable valuation. In this article, I have identified two such TSX stocks you can buy right now with $1,000.
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Is the TSX stock a good buy in March 2025?
Valued at a market cap of $9.8 billion, Gildan Activewear (TSX:GIL) is among Canada’s most popular retail companies. Gildan Activewear reported record fourth-quarter (Q4) sales of $822 million, up 5% year over year, and adjusted earnings per share (EPS) of $0.83, an 11% increase.
The Canadian apparel manufacturer closed 2024 with a record annual revenue of $3.3 billion and adjusted operating margins of 21.3%. Its adjusted diluted EPS grew 17% year over year, meeting company guidance. Moreover, Gildan returned a record $889 million to shareholders through dividends and share repurchases.
Gildan highlighted several growth catalysts for 2025, including the strong reception of its soft cotton technology, which drove double-digit point-of-sale growth during Q4. Other innovations, like plasma print technology and ColorBlast in the Comfort Colors vertical, contributed to the brand’s 40% growth in 2024.
Gildan also secured a license to distribute Champion brand products through the printwear channel, which will further expand its product portfolio. Its international business saw a 20% increase in sales in the last two quarters as markets recovered and new capacity in Bangladesh improved service capabilities.
For 2025, Gildan forecasts mid-single-digit revenue growth with an approximately 50-basis-point improvement in adjusted operating margin. Adjusted diluted EPS is expected to range between $3.38 and $3.58, representing a growth of 13% to 19%.
Given consensus price target estimates, the TSX stock is priced at 13 times forward earnings, a discount of over 25%.
Is the gold mining stock undervalued?
Another TSX stock that should be part of your watchlist is New Gold (TSX:NGD), a Canada-based mining company. In Q4 of 2024, New Gold reported a record revenue of US$262 million, as the intermediate gold mining company achieved commercial production at its C-Zone project and continued to advance underground development at Rainy River.
The Canadian miner produced approximately 80,400 gold ounces and 14.5 million pounds of copper in Q4, with consolidated all-in sustaining costs of US$1,018 per ounce, a 15% decrease from the third quarter. For 2024, it produced just under 300,000 ounces of gold and 54 million pounds of copper at all-in-sustaining costs of US$1,239 per ounce, beating the low end of its guidance range.
“We accomplished a lot of our objectives we laid out at the start of the year,” said Ankit Shah, executive vice president of Strategy and Business Development. New Gold generated US$390 million in cash flow from operations and US$85 million in free cash flow for 2024.
New Gold forecasts significant production growth over the next three years. Gold production is expected to increase by 30% to reach 410,000 ounces by 2027, while copper production is projected to surge by 90% to 105 million pounds over the same period.
“With the increase in production, the cost per ounce of gold are expected to be reduced significantly,” said Patrick Godin, president and chief executive officer. By 2027, the consolidated all-in sustaining costs are expected to drop to US$400-US$500 per gold ounce, a 64% reduction compared to 2024.
New Gold projects generating over US$1.7 billion in free cash flow over the next three years at consensus commodity prices, or more than $2 billion at current spot prices—representing over 80% of its market capitalization.
Priced at 10.3 times forward earnings and 8.1 times forward free cash flow, New Gold stock is relatively cheap, given its growth estimates.
