Got 300? These 3 TSX Stocks Are Too Cheap to Ignore

Even $300 in three TSX stocks can kickstart compounding and teach you how to hold through volatility.

Key Points
  • Cargojet offers leverage to freight recovery, but earnings can swing if shipping demand weakens.
  • Onex can compound through fees and investment exits, even if the stock stays quiet short-term.
  • Bausch looks cheap with improving results, but high debt and surprise risks can punish investors fast.

Small money can still make big trouble for regret. The trick is starting before “someday” turns into “should have.” A lot of Canadians wait for the perfect moment, then watch compounding do its work for someone else. Even $300 in each of three TSX stocks can become a long-term win as you buy time, you spread your bets, and you practise investing through every mood swing. Three small buys can also keep you diversified across transport, alternative assets, and healthcare.

a person watches stock market trades

Source: Getty Images

CJT

Cargojet (TSX: CJT) looks tempting as it pairs a strong operator with a market that still feels uneasy about freight demand. The stock returned about 17% over the last year, yet investors still debate what happens next as trade and e-commerce volumes settle into a new normal. Cargojet flies time-sensitive air cargo across Canada, and it runs ACMI and charter services for customers that need lift without owning planes. Analysts still like its position in Canadian express freight, and targets imply room for upside.

The third quarter (Q3) of 2025 showed that tug-of-war in plain numbers. Cargojet reported total revenue of $219.9 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $70.4 million, for a 32.0% margin. Furthermore, it produced free cash flow of $152.4 million.

Net earnings fell to $8.8 million, and diluted earnings per share (EPS) came in at $0.58, which explains the mixed mood. Yet cash flow highlights disciplined cost control and smart capital choices. Its trailing price ot earnings (P/E) is around 11, and it has a forward P/E in the mid-teens. Therefore, you don’t need perfection to start. A catalyst can show up when charter demand steadies, but a fresh slowdown can hurt quickly.

ONEX

Onex (TSX: ONEX) also fits as it can create value even when the share price moves sideways. The shares delivered only about a 1% one-year return while the broader TSX surged, and that gap can leave it overlooked. Onex invests and manages capital across private equity and credit, so it can earn from investment gains, management fees, and performance fees when exits line up.

Onex’s Q3 2025 update put real markers on the table. The TSX stock reported investing capital of about $8.5 billion, or $169.28 per fully diluted share at Sept. 30, 2025, and it highlighted fee-generating capital of around $42 billion and unrealized carried interest of $360 million.

Management also pointed to the Convex transaction and a $2 billion allocation from AIG to Onex strategies over three years, which can support fee growth. It holds a trailing P/E of around 13 at writing. Some analysts point to targets near $151, but deal timing and market marks can swing results.

BHC

Bausch Health (TSX: BHC) plays the contrarian role, and that makes it a classic “too cheap to ignore” candidate. The TSX stock showed about a 6% drop over the past year, so sentiment stays fragile. Bausch sells a broad mix of pharmaceutical products, and it leans on recurring demand from doctors and patients rather than consumer whim.

In Q3 2025, Bausch Health reported revenue of US$2.68 billion, up 7% year over year, and it delivered adjusted EBITDA of US$986 million. It also reported GAAP net income attributable to Bausch Health of US$179 million. Furthermore, it shows a P/E around 7 and a market cap around $3.5 billion at writing.

This tells you the market still prices in skepticism. If management keeps improving results and managing debt, a rerating can do a lot of work. The risks sit in leverage, pricing pressure, and litigation surprises, so investors need a real stomach for bumps.

Bottom line

If you want long-term wins, keep the plan simple. Cargojet offers operating leverage when volumes recover. Onex offers patient compounding through fees and exits. Bausch offers a cash-flow story that can rebound if fear runs ahead of fundamentals. Start with $300, track the results, and add only when the TSX stocks keep earning your trust. That way, you’re sure to let long-term compounding do all the heavy lifting.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cargojet. The Motley Fool has a disclosure policy.

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