Investing in undervalued growth stocks is a strategy that can help you generate market-beating returns over time. In this article, I have identified two cheap TSX stocks you can buy with $1,000 in October 2025.
Is this Canadian stock undervalued?
Valued at a market cap of almost $700 million, Zedcor (TSXV: ZDC) is a Canadian stock that has returned a staggering 6,000% to shareholders in the last five years. Zedcor provides turnkey, customized mobile surveillance and live monitoring solutions across Canada and the United States.
The mobile surveillance firm provides rental, maintenance, remote video monitoring, data streaming, and related software or hardware upgrade services for its MobileyeZ security towers, surveillance, and live monitoring of fixed-site locations.
In addition, it provides ancillary services related to fixed site security camera installations, as well as security guard and personnel services. Zedcor serves customers in sectors such as construction, energy, retail, and infrastructure.
Zedcor delivered record second-quarter results with revenues surging 84% year over year to $13.5 million, exceeding the previous high set just last quarter by $2.1 million.
The security tower provider generated record adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $4.9 million, up 83% year over year, indicating a margin of 36%.
Zedcor produced 316 towers during the quarter, averaging over 24 units per week and meeting its weekly production target of 20 to 25 units. Zedcor’s tower fleet reached 1,882 units at quarter’s end, up 879 towers year over year. Management expects to deliver between 1,200 and 1,400 new towers in 2025, likely toward the higher end of that range.
Growing footprint
Zedcor operates 13 branches, split between six in Canada and seven across the United States. The company plans to double its U.S. footprint through 2026 with several locations opening before the year’s end.
Notably, manufacturing efficiency improved in Q2 as tower production costs declined from roughly $34,000 to approximately $28,500 per unit despite tariff concerns.
Analysts tracking the TSX stock forecast revenue to increase from $33 million in 2024 to $257.6 million in 2027. In this period, adjusted earnings are forecast to expand from $0.02 per share to $0.52 per share.
If Zedcor stock is priced at 30 times forward earnings, which is reasonable, it should gain roughly 250% from current levels over the next four years.
Is this TSX gold stock undervalued?
Valued at a market cap of $9 billion, China Gold International Resources (TSX: CGG) is a gold and base metal mining company. It acquires, explores, develops, and mines mineral resources in China and Canada. With gold prices rallying to fresh record highs in 2025, CGG stock has returned 250% in the past year.
In Q2, China Gold reported revenue of $307.3 million, up from $148 million in the year-ago period. Its net income rose to a record $116.3 million, swinging from a $4.8 million loss in the same quarter last year.
Mine operating earnings surged to $159.4 million, up $130 million from $29.4 million in the year-ago period. Cash flow from operations jumped to $191.3 million, up from $80.9 million previously.
Production volumes expanded significantly with gold output climbing 38% to 43,403 ounces from 31,373 ounces, while copper production more than doubled to 39.7 million pounds from 18.6 million pounds.
Analysts tracking the TSX stock forecast revenue to increase from $1.09 billion in 2024 to $1.80 billion in 2027. In this period, adjusted earnings are forecast to expand from $0.23 per share to $1.80 per share.
If the TSX mining stock is priced at 20 times earnings, it should gain over 50% over the next 18 months.
