The Canadian equity market has carried its momentum into 2025, with the benchmark index climbing more than 20% since the start of the year. This growth comes even as tariff-related uncertainty lingers in the background. Supportive interest-rate cuts and a surprisingly resilient economy have helped many Canadian companies post impressive gains, pushing the broader market steadily higher.
Even with this strong rally, shares of several high-quality businesses remain attractively priced. Their valuations haven’t yet caught up to the strength of their operations, creating a window for investors who want to put fresh capital to work. With as little as $300, investors can still pick up shares of fundamentally sound companies that offer solid growth and value.
Against this backdrop, here are three TSX stocks that are too cheap to ignore.
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Cheap TSX stock #1: goeasy
goeasy (TSX:GSY) is one of the top TSX stocks that is too cheap to ignore. Shares of this subprime lender have fallen about 42% over the past three months. The decline was triggered by a short-seller report alleging accounting manipulation, followed by quarterly results that reflected pressure on earnings. Higher credit-loss provisions, rising financing costs, and a strategic pivot toward secured lending weighed on short-term profitability.
Notably, goeasy has rejected the short-seller claims and reiterated its outlook, emphasizing a lending strategy built on tighter underwriting. While the loan mix shift towards secured lending is weighing on yields, it also reduces long-term credit risk and supports more consistent earnings.
goeasy will likely benefit from a large addressable market, strong loan demand, a diversified funding base, and omnichannel offerings. Moreover, its focus on improving operating efficiency and steady credit performance augurs well for growth.
After the selloff, the stock trades at 6.1 times forward earnings, far below its historical average. While its stock is trading at a discount, goeasy is poised to deliver double-digit earnings growth in the long term. Its double-digit earnings growth potential and 5% dividend yield make it too cheap to miss.
Cheap TSX stock #2: Lightspeed
Lightspeed (TSX:LSPD) is another compelling stock to buy now. While shares of this Canadian tech company have lost considerable value, its turnaround plan is gaining momentum, with revenue climbing, average revenue per user improving, and adoption strengthening in core markets such as North American retail and European hospitality.
Lightspeed is also leveraging artificial intelligence (AI) technology to develop products and accelerate growth. Tools like AI Showroom and automated product description generators are giving merchants faster, easier ways to build a polished online presence, boosting the platform’s appeal and deepening customer loyalty.
Its profitability is also moving in the right direction, supported by strong subscription and transaction-based margins and cost-control measures. Management expects free cash flow to break even or turn positive by fiscal 2026. While Lightspeed’s fundamentals are improving, the stock trades at roughly 0.8 times next-12-month enterprise value to sales, offering an appealing entry point for long-term investors.
Cheap TSX stock #3: Cargojet
Cargojet (TSX:CJT) stock has slid more than 41% over the past year. This decline in its price has made it a value play as the company’s fundamentals remain solid. While softer global trade and weaker international demand continue to weigh on its ACMI and Charter operations, creating near-term volatility, its core domestic network remains steady. Further, its dominant position in the Canadian air cargo space makes it a solid long-term pick.
Cargojet’s disciplined cost structure, diversified revenue base, and long-term contracts add durability to its cash flows. Moreover, the recent contract renewals with Amazon through 2029 and DHL through 2033 further solidify its long-term prospects.
Cargojet’s management is optimistic and expects to maintain strong EBITDA margins despite geopolitical and trade headwinds. Moreover, the stock is poised to recover swiftly as demand normalizes. Its leadership in time-sensitive domestic freight and ability to grow without significant capital spending give it structural advantages, making the stock appealing to investors with a long-term outlook.
