Investors looking for unbelievable buying opportunities right now may be feeling a little down. Indeed, given where valuations have soared to for many of the top-tier growth stocks in the market, investors who are pricing in even higher growth for 2026 may be right (but they’re taking bigger risks than they have in the past).
However, valuations of some lower-priced value stocks don’t look as cheap as they once did. Accordingly, finding true value and overlooked companies worth considering right now is harder, I’d argue, than in a long time.
That said, these three Canadian stocks do appear to be screaming buys right now, and they’re atop my watch list. Here’s why.
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The Metals Company
I think The Metals Company (NASDAQ:TMC) could be among the most impressive companies in terms of upside over the next two years.
Valued at just $4.2 billion, the total addressable market for the company’s key critical minerals that it’s pulling from the sea floor could amount to trillions. Indeed, those are theoretical numbers, and we’ll have to see what TMC is able to ultimately bring in (and how profitable its operations will be) over time. But I’d argue that given the company’s very small market capitalization relative to a massive opportunity, this is a stock investors will begin to catch onto in the coming year.
SmartCentres REIT
In the world of real estate investment trusts (REITs), SmartCentres REIT (TSX:SRU.UN) continues to be a table-pounder for me right now.
The retail-focused REIT has actually performed quite well this year, as investors appear to be picking stocks more than they did in the past. Any company with exposure to retail real estate has been hit over the course of recent years, particularly as interest rates rose and inflationary pressures hurt margins for core retailers.
But with Walmart anchoring most of the company’s core locations, and occupancy rates hovering near the lowest levels in this sector right now, SmartCentres’ 7.2% dividend yield and valuation multiple of just 16 times earnings is very attractive in my view. Those thinking long-term should benefit in a big way from consistent growth over time.
Whitecap Resources
In the energy sector, another overlooked company I think could have massive upside over the course of the next year is Whitecap Resources (TSX:WCP).
Shares of the mid-cap Canadian energy producer have surged to new all-time highs of late. This move is notable, considering the relative weakness we’ve seen in commodity prices, with only the best companies with efficient earnings and growth prospects prospering.
Whitecap has both those key factors working for it, delivering strong production and earnings growth over the past year in this environment. With a 6.6% dividend yield and a price-to-earnings ratio under 10 times, it’s hard to find this mix of income, growth, and value all in one place at one time.
