The TSX Composite Index has been on a strong run in 2025, climbing an impressive 19.5% year to date. Still, a few fundamentally strong Canadian companies with solid growth prospects continue to trade cheaply and appear significantly undervalued. Their low valuation and growth potential make them solid long-term picks.
Against this backdrop, here are three Canadian stocks that are trading cheaply near their current levels and have solid growth prospects.
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goeasy
goeasy (TSX:GSY) offers value, growth, and income, making it a solid long-term investment. This Canadian financial services firm specializes in non-prime consumer lending and has been delivering double-digit revenue and earnings growth. Thanks to its consistently strong financials, goeasy stock has delivered above-average capital gains of about 223% in the last five years. Furthermore, the company has been rewarding shareholders with consistent dividend payments for 21 years and has increased its dividend for 11 consecutive years.
goeasy is well-positioned to expand its consumer loan portfolio in the coming years, thanks to its leadership in Canada’s subprime lending space and access to diverse funding sources. Further, the growing mix of secured loans will help lower credit risk and support long-term stability. In addition, goeasy’s strong underwriting capabilities, steady credit and payment performance, and operational efficiency augur well for sustained profitable growth.
While goeasy is likely to grow its earnings at a double-digit rate and distribute higher dividends, its stock trades at a next-12-month (NTM) price-to-earnings ratio of 8.5, which makes it too cheap to ignore right now.
Cargojet
Cargojet (TSX:CJT) is another cheap TSX stock to consider now. It is down approximately 36% from its 52-week high of $144.97, offering a solid opportunity for buying. While the stock has lost notable value, Cargojet’s fundamentals remain solid, and the company has the potential to deliver solid growth, which will lead to significant returns in the long run.
Cargojet has a diversified revenue base, supported by long-term agreements. These contracts provide stability, reliable cash flows, and healthy margins in all market conditions. Further, Cargojet’s dominance in the time-sensitive air freight market in Canada positions it well to capitalize on the growing e-commerce penetration. Moreover, its efficient cost management across its network supports profitability. The air cargo operator maintains a solid balance sheet and remains focused on reducing its debt.
Going forward, Cargojet’s strategic investments in expanding its network and scaling its operations without significant incremental costs bode well for growth.
Well Health
Shares of digital healthcare company WELL Health Technologies (TSX:WELL) are too cheap to ignore. WELL Health stock is down over 26% this year. However, its long-term fundamentals remain solid. Its extensive outpatient clinics and omnichannel healthcare services will likely drive patient visits to its platform, supporting its growth. Furthermore, its diversified revenue base, including tech solutions, bodes well for growth.
WELL Health is focusing on expanding its technology portfolio by leveraging AI. At the same time, WELL is building momentum in cybersecurity, an area with high demand, recurring revenue potential, and opportunities for international growth.
Mergers and acquisitions remain a key growth lever, helping WELL Health both scale its platform and add fresh innovation to its portfolio. Importantly, the company has paired this acquisition strategy with disciplined financial management. Its healthy balance sheet, focus on debt reduction, and efforts to limit share dilution are positives.
WELL Health trades at 1.3 times its expected enterprise value-to-sales for the next 12 months, which is low. Overall, WELL Health stock offers solid growth potential at a discounted price.
