The process of investing in the equity markets may seem overwhelming for most Canadians, as you need to successfully identify companies that are positioned to beat inflation consistently over time.
In this article, I have shortlisted two such Canadian stocks you can buy right now with $2,000. Both these stocks trade at reasonable valuations and continue to grow at an enviable pace, which should translate to steady returns in 2025 and beyond. Let’s see why.
Is this small-cap Canadian stock undervalued?
Valued at a market cap of $247 million, Tornado Infrastructure Equipment (TSXV:TGH) designs, fabricates, manufactures, and sells hydrovac tracks in North America. It serves excavation service providers in the municipal and oil and gas markets.
Tornado Global Hydrovacs represents an exceptional growth opportunity in the rapidly expanding infrastructure services sector, driven by powerful industry tailwinds and strong operational execution.
The company’s revenue has quadrupled in the last three years. Moreover, this growth is backed by operational improvements, as truck sales increased from 87 to 320 units over the same period. The momentum continues with 2025 revenue projections of $157-$166 million, up from $137 million in 2024.
TGH is positioned to capitalize on government infrastructure spending. Additionally, it estimates the global vacuum truck market to grow from $2.0 billion in 2024 to $3.5 billion by 2032.
The recent CustomVac acquisition expands Western Canadian presence and product offerings, while the four-year Ditch Witch supply agreement provides $43.9 million in minimum guaranteed revenue. Further, a new production facility launched in the second quarter (Q2) should boost manufacturing capacity beyond the current +300 trucks annually.
TGH’s competitive advantages include 40 years of industry experience, proprietary Vortex control technology, and an established dealer network spanning 40 partners. With hydrovac excavation becoming the safety standard for critical infrastructure work, TGH’s proven track record of building +1,800 trucks since 2008 positions it as the trusted industry leader.
Analysts tracking the Canadian stock forecast revenue to rise from $137 million in 2024 to $255 million in 2027. Comparatively, adjusted earnings are forecast to expand from $0.07 per share to $0.19 per share. If the Canadian stock is priced at 20 times forward earnings, it could more than double over the next 18 months.
Is this TSX stock a good buy today?
Another small-cap stock that you should consider owning is Profound Medical (TSX:PRN), a medical device company. Profound develops and markets incision-free therapeutic systems for the image-guided ablation of diseased tissue in Canada, Germany, the United States, and Finland.
The company’s TULSA-PRO technology offers transformative patient outcomes compared to standard treatments. Profound’s commercial momentum is accelerating with a robust sales pipeline of nearly 500 prospects, including 80 qualified leads across verify, negotiate, and contracting stages.
Management reaffirmed confidence in delivering 70-75% revenue growth in 2025, supported by the transition to higher-margin capital sales and growing same-store procedure volumes (up 10% quarter over quarter).
The launch of TULSA-AI volume reduction software for BPH (Benign Prostatic Hyperplasia) treatment creates a second major revenue stream, enabling 60-90-minute procedures that allow physicians to “stack cases” for full TULSA treatment days.
Analysts tracking PRN stock forecast revenue to grow from $15.2 million in 2024 to $250 million in 2029. While still unprofitable, Profound Medical is expected to report a free cash flow of $62.3 million in 2029. If the TSX stock is priced at 10 times forward FCF, which is quite cheap, it could surge over 200% over the next three years.
