Canada’s primary stock exchange gained +1.23% in the first quarter of 2025, although market volatility remains elevated due to tariff uncertainties. If you’re scouting for buying opportunities, you can purchase three undervalued stocks today for strong future gains.
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A strong buy
Aecon Group (TSX: ARE) is a steal at $16.79 per share, given its favourable position in Canada’s infrastructure sector. Meanwhile, the 4.48% dividend yield can offset the current weakness (-37.66% year to date). Market analysts’ 12-month average price target is $26.41 (+57.3% upside).
The $1.1 billion engineering and construction firm provides various construction services, including civil, industrial, nuclear, urban transportation, and utilities. Aecon caters to private and public-sector clients and boasts several major long-term projects under more collaborative models.
Despite lower revenue ($4.2 billion) and a net loss (-$59.4 million) in 2024, management sees a positive business outlook. “Driven by robust year-end backlog, significant new contract awards, contributions from strategic acquisitions, solid recurring revenue, and a strong bid pipeline, revenue in 2025 is expected to be stronger than 2024,” said Jean-Louis Servranckx, President and chief executive officer (CEO) of Aecon. The year-end backlog was $6.66 billion, while contract awards reached $4.75 billion.
Visible growth potential
WELL Health Technologies (TSX: WELL) deserves serious consideration or should be on investors’ watchlists. The $1.06 billion multichannel digital health technology company is Canada’s largest owner and operator of outpatient health clinics. Its share price is absurdly cheap at $4.27 (-37.76% year to date) vis-à-vis the growth potential.
The full-year 2024 results aren’t out yet, but the annualized revenue run rate surpassed $1 billion after the first three quarters. In the third quarter (Q3) of 2024, revenue rose 27% year over year to a record $251.7 million. Hamed Shahbazi, Founder and CEO of WELL, expect enhanced profitability and increased free cash flow (FCF) to shareholders this year. The average price forecast in 12 months is $8.39 (+96.5%).
Resilient commercial model
SunOpta (TSX: SOY), a $642.3 million multinational food and mineral company, has been around for over five decades. Today, it has two growth platforms: beverages & broth and fruit snacks. The former (plant-based/nutritional beverages, tea, and broth) accounts for 80% of revenue, while the latter (better-for-you snacks) contributes 20%.
According to management, SunOpta is a partner of choice for leading consumer product companies and retailers. However, the consumer defensive stock trades at a deep discount. At $5.68 per share, the year-to-date loss is -48.83%. Nonetheless, it remains a growth business because it serves large, growing markets.
SunOpta maintains a resilient commercial model, citing multiple paths to market and a multi-channel distribution network. In 2024, revenues rose 15.48% year over year to US$723.7 million, while net loss thinned 90% to US$17.9 million from US$178.8 million in 2023.
Brian Kocher, CEO of SunOpta, said, “Our business momentum remains strong with productivity and efficiency initiatives progressing as planned. In 2025, we look to again drive strong growth and expand our market share by leveraging the competitive strengths of our platform.”
Since there are no significant growth capital investments in the near term, SunOpta expects significant free cash flow this year. A rebound could propel the stock to its 52-week high of $11.40 (+100.7%).
Multi-baggers
Aecon Group and WELL Health Technologies are potential multi-baggers in 2025 and beyond. SunOpta is a dark horse and attractive to investors with above-average risk appetites.
