Investing in fundamentally strong stocks trading at a discount to their intrinsic value is a proven strategy for building long-term wealth. In this article, I have identified two such undervalued TSX stocks you can buy with $5,000 right now. Let’s see why.
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Is this TSX stock a good buy?
Valued at a market cap of $15 billion, Stantec (TSX:STN) is a global engineering and consulting firm providing infrastructure, environmental, architectural, and design services across water, transportation, energy, and building sectors. The company serves public and private clients through integrated solutions spanning planning, design, project management, and construction administration in North America and internationally.
Stantec posted impressive third-quarter results with net revenue climbing nearly 12% to $1.7 billion, driven by balanced organic and acquisition growth of just over 5%. The engineering firm achieved a record adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 19%, up 100 basis points year over year, while adjusted EPS (earnings per share) jumped 17.7% year over year.
The company’s Water business reported an organic growth of 13%, followed by the energy and resources segment at 10%. This momentum enabled Stantec to end the third quarter (Q3) with a backlog of $8.4 billion, up 15% year over year.
In the first nine months of 2025, Stantec grew its operating margin by 86% to $551 billion, driven by revenue growth and improved collections. Its day sales outstanding improved to 73 days, compared to 77 days in Q4 of 2024. Moreover, Stantec raised its full-year adjusted EBITDA margin outlook to 17.3% and expects adjusted EPS to grow by 20% year over year in 2025.
Analysts tracking Stantec forecast adjusted earnings to grow from $4.42 per share in 2024 to $6.74 per share in 2027. If the TSX stock is priced at 20 times forward earnings, which is similar to its current multiple, it should gain 13% over the next year.
Is this uranium stock a good buy?
Valued at a market cap of almost $50 billion, Cameco (TSX:CCO) is a leading nuclear energy company operating through three segments: Uranium (mining and sales), Fuel Services (refining and conversion), and Westinghouse (reactor technology and equipment).
Cameco supplies uranium concentrate, fuel products, and maintenance services to nuclear utilities and government agencies across the Americas, Europe, and Asia.
Cameco posted solid third-quarter results and announced a transformative partnership that could reshape the nuclear energy landscape. The company signed an agreement with Brookfield and the U.S. government that includes at least $80 billion in planned investments for Westinghouse nuclear reactors, a major milestone for the industry.
The deal positions Westinghouse AP1000 technology as the leading choice for large-scale nuclear deployment globally. Under the agreement, the U.S. government will facilitate financing and help accelerate reactor construction to strengthen energy security.
If performance milestones are met, the government could acquire up to a 20% stake in Westinghouse. This potential equity stake will be limited to the Westinghouse business only and not extend to Cameco’s core uranium operations.
CEO Tim Gitzel emphasized that the partnership addresses a critical barrier in the nuclear industry by providing the massive upfront investment needed to stimulate the supply chain and get reactor construction moving. Cameco expects this will create substantial long-term contracting opportunities for its uranium and fuel services businesses.
With $770 million in cash and an undrawn $1 billion credit facility, Cameco is well capitalized. Analysts tracking the TSX stock forecast adjusted earnings to expand from $0.67 per share in 2024 to $3.50 per share in 2029. Given consensus price targets, Cameco trades at a 36% discount in November 2025.
