Why I’d Invest in Canadian Value Stocks for Both Stability and Growth

Three Canadian value stocks are buying opportunities for investors looking for stability and growth.

The 90-day tariff pause announced by U.S. president Trump on April 9, 2025, helped the TSX post its biggest advance (+5.42%) since March 2020 and trim its steep year-to-date loss to -4.05%. However, some market analysts warn the relief is temporary. Economic uncertainty will persist until there’s a clear endgame to Trump’s trade strategy.

Meanwhile, investors can stay in the market but shift their focus to Canadian value stocks for stability and growth. Their key characteristics are that they are well-established companies with strong business fundamentals but trade at discounted prices. Once the market stabilizes, expect the stocks to seek their actual or intrinsic values.

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Market leader

Savaria (TSX: SIS), a global leader in personal mobility, should be on investors’ buy lists. The $1.1 billion company provides accessibility solutions for the elderly and physically challenged individuals. Aging demographics and steady demand assure business growth.

Tariff fears caused the share price to drop to $16.49 (-16.46% year to date) from the 52-week high of $23.92. Fortunately, the 3.44% dividend compensates for the temporary pullback. This industrial stock belongs to the few TSX companies that pay monthly dividends. SIS has not missed a monthly dividend payment since 2017.

In 2024, net earnings grew 28.3% to $48.5 million compared to 2023. Savaria had $242.8 million in funds at year-end to support working capital, investments and growth opportunities. Management launched Savaria One, a company-wide, multi-year sales and operations program, in 2023.

Its president and chief executive officer (CEO), Sébastien Bourassa, said, “With our many Savaria One initiatives positively impacting procurement, production and overall efficiencies, we have built an even stronger foundation for our future growth.”

Tech gem in oil & gas

Computer Modelling Group (TSX: CMG) trades at $7.39 per share, or nearly 50% lower than its 52-week high of $14.73. This $556.45 million software and consulting technology company in the oil & gas industry pays a decent 2.65% dividend.   

This Canadian value pick boasts reservoir simulation software that enables reservoir and production engineers to make informed decisions on integrated oil and gas projects. In the third quarter (Q3) of fiscal 2025 (three months ending December 31, 2024), net income and free cash flow (FCF) rose 71% and 20.9% year over year to $9.6 million and $8.8 million.

According to management, maintaining CMG’s customary high renewal rates in Q4 is the key to sustaining the current growth trajectory.

Robust demand

AtkinsRéalis Group (TSX: ATRL) is a strong buy for its strong position in Canada’s infrastructure market. Its 20% annual growth rate is another compelling reason to invest in this $10.81 billion engineering and construction firm. At $67.97 per share, the year-to-date loss is -10.85%, while the overall return in three years is 132.39%. The dividend yield is a modest 0.13%.

At year-end 2024, the total backlog reached a record $17.45 billion due to the robust demand for AtkinsRéalis’s services and nuclear products. “With strong operating cash flows in the second half of 2024, we have a strong balance sheet and low debt, which provides financial flexibility to invest for future growth,” said its president and CEO, Ian L. Edwards.

Great value propositions

Savaria, Computer Modelling, and AtkinsRéalis have no shields against global economic uncertainties. However, the businesses should remain resilient, notwithstanding the headwinds. Expect the stocks to rebound when tariff tensions ease.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Computer Modelling Group. The Motley Fool has a disclosure policy.

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