Investing in fundamentally strong growth stocks that trade at a reasonable valuation is a proven strategy to generate outsized gains over time. In this article, I have identified two beaten-down TSX stocks Canadian investors should consider buying with $5,000 right now.
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Is this healthcare stock a good buy?
Valued at a market cap of $234 million, Profound Medical (TSX: PRN) is a commercial-stage medical device company that develops and markets incision-free therapeutic systems for the image-guided ablation of diseased tissue in Canada, Germany, the United States, and Finland.
In Q1 2025, Profound Medica reported revenue of $2.6 million, an increase of 82% year over year, driven by strong adoption of its TULSA-PRO prostate treatment technology.
Profound achieved a major milestone with positive data from the CAPTAIN trial, the first randomized controlled study comparing TULSA-PRO to robotic radical prostatectomy. Results showed TULSA patients experienced zero blood loss, no overnight hospital stays, and statistically significantly less pain during the first week post-treatment. Patients recovered two weeks faster than those undergoing traditional surgery.
Profound introduced its TULSA AI volume reduction module for benign prostatic hyperplasia (BPH), targeting 60–90 minute procedures regardless of prostate size. The module launches in limited release in June, with full deployment planned for Q4 2025.
The new turnkey TULSA-PLUS program combines MRI equipment with TULSA technology, making adoption feasible for practices requiring only two procedures weekly to justify costs. With Level 7 Medicare reimbursement effective January 2025, management maintains confidence in achieving 70–75% revenue growth for the full year.
Analysts tracking the TSX stock forecast revenue to rise from $15.2 million in 2024 to $250 million in 2029. The company is estimated to end 2029 with free cash flow (FCF) of $62.3 million, compared to an outflow of $32.5 million this year.
If PRN stock is priced at 15 times forward FCF, it could gain roughly 300% over the next four years.
The bull case for this small-cap TSX stock
Valued at $230 million by market cap, Anaergia (TSX: ANRG) is a TSX stock that has gained over 170% over the last 12 months. However, it is also down 90% from all-time highs, allowing you to buy the dip.
Anaergia provides renewable energy solutions through waste-to-resource conversion technologies, including biogas production, wastewater treatment, and solid waste processing across global markets.
The company delivered a remarkable transformation in 2024, executing its “Anaergia 2.0” strategy, which fundamentally repositioned the renewable energy company for sustainable growth. The organic waste-to-energy solutions provider secured a $41 million strategic investment from Marny Investissement, strengthening its balance sheet.
Anaergia reported gross margins of 23% in 2024, up from 13.4% in 2023, showcasing the effectiveness of its capital-light strategy focused on profitable projects.
While full-year revenue declined 24.2% to $111.6 million due to project completions and strategic divestitures, net losses improved by 71% to $55.9 million, reflecting enhanced operational discipline and a 35% workforce reduction.
Anaergia’s commercial momentum accelerated in Q4 2024 and early 2025, securing major contracts including PepsiCo Colombia, Monterey One Water, and multiple Italian biomethane facilities.
It reported $103.3 million in revenue backlog with an additional $250 million in capital sales opportunities under negotiation. Strategic expansion into high-growth markets, including Japan, Latin America, and Europe, positions it to capitalize on favourable regulatory tailwinds supporting renewable natural gas adoption.
Analysts tracking the TSX stock forecast sales to increase from $111.6 million in 2024 to $1.1 billion in 2029. Anaergia is forecast to end 2029 with an FCF of $150 million, compared to an outflow of $7 million in 2025. If ANRG stock is priced at 10 times forward FCF, it could surge over 500% over the next four years.
