The Canadian stock market has witnessed a strong run in 2025 despite trade and tariff concerns. The S&P/TSX Composite Index has climbed approximately 29% year to date, supported by interest rate cuts, resilient consumer spending, and an economy that has proven more resilient than anticipated. This favourable backdrop has helped several Canadian companies post impressive gains, rewarding investors who stayed the course.
Despite this broad market strength, a number of high-quality TSX-listed companies continue to trade cheaply. In some cases, lingering macroeconomic concerns, temporary earnings pressure, or cautious investor sentiment have kept share prices subdued. However, there are so many ways these fundamentally sound companies’ stocks can soar and deliver meaningful capital gains. For long-term investors, these conditions can create compelling entry points.
In this context, here are a few cheap TSX stocks that are too cheap to miss.
Cheap TSX Stock #1: goeasy
goeasy (TSX:GSY) is one of the top TSX stocks that is trading cheaply and has multiple catalysts that can help it soar higher. The stock has fallen roughly 28% over the past three months, a sharp pullback that followed the release of a short-seller report. That pressure was compounded by higher credit-loss provisions, rising financing costs, and the company’s strategic shift toward secured lending, all of which weighed on short-term profitability and investor sentiment.
Despite these headwinds, the underlying investment case for goeasy remains intact. Demand for consumer credit remains resilient, and as a leading player in Canada’s subprime lending market, the company is well-positioned to benefit from that trend.
Besides loan growth, goeasy is likely to benefit from diversified funding sources. Its well-established omnichannel model enables efficient customer acquisition and servicing, while its historically stable credit performance suggests disciplined risk management. In parallel, management’s ongoing focus on operating efficiency should help protect margins and support earnings as the business continues to scale.
From a valuation perspective, the stock appears attractive. goeasy is currently trading at a forward price-to-earnings multiple of approximately 6.8, a significant discount to its long-term growth potential. Its track record of delivering double-digit earnings growth, dividend increases, and a compelling yield of about 4.5% makes its stock too cheap to miss.
Cheap TSX Stock #2: Cargojet
Cargojet (TSX:CJT) is another cheap TSX stock to buy now. The company’s share price came under pressure in 2025 due to softer global trade conditions and weaker international demand that affected its Aircraft, Crew, Maintenance, and Insurance (ACMI) and charter operations.
Despite ongoing global headwinds, the company’s fundamentals remain intact. Cargojet benefits from a dominant position in Canada’s air-cargo market, a strong focus on operational efficiency, and long-term customer contracts that provide revenue stability even when international trends soften.
Moreover, the momentum in its core domestic business has sustained despite challenges, which shows the resilience of the business.
Seasonality also plays an important role in Cargojet’s outlook. The fourth quarter is historically the company’s busiest period, driven by heightened retail activity during the holiday shopping season. As e-commerce volumes rise, shipping demand typically surges, providing a meaningful lift to revenue and profitability. This seasonal upswing has often translated into stronger financial results and a more positive market narrative around the stock.
Recent market action suggests that investors may already be starting to recognize this dynamic. Cargojet shares have climbed 11.2% over the past month, indicating early signs of renewed confidence.
Further, the renewal of key agreements with major customers such as Amazon and DHL strengthens Cargojet’s outlook. These contracts provide visibility into future earnings and stability to its cash flows.
As shipping volumes gradually recover and seasonal demand builds, Cargojet appears well-positioned for stronger performance. With the stock still trading at a discount to its historical valuation and supported by solid fundamentals, it offers a compelling opportunity to go long.
