5 Stocks for Canadian Value Investors

By investing in high-quality value stocks across multiple sectors, Canadian investors can reduce overall risk and enjoy solid gains.

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Asset Management

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Key Points

  • Canada’s benchmark index is climbing higher despite trade uncertainty, supported by rate cuts, resilient consumer spending, and momentum in the resources sectors.
  • Several top TSX stocks look compelling after their recent pullbacks, creating attractive buying opportunities for value investors.
  • These value stocks are likely to benefit from solid fundamentals, strong demand, and a focus on improving profitability.

The Canadian stock market has continued its upward momentum, even as trade-related uncertainty lingers in the background. Over the past year, the Canadian benchmark index has climbed about 34%, driven by interest rate cuts, steady consumer spending, and strength in the resources sectors. This resilience in the broader economy has translated into strong gains across many Canadian stocks.

That said, several high-quality companies with solid fundamentals are still trading cheaply, offering significant value near their current market price.

So if you are a value investor, here are five Canadian stocks to consider now.

MDA Space

MDA Space (TSX:MDA) is a compelling value stock, especially after its recent share price correction. Notably, MDA stock plunged about 37% from its 52-week high. The sharp sell-off followed the cancellation of a multi-billion-dollar satellite deal, which raised investor concerns. However, the space technology company’s long-term growth outlook remains solid, creating a buying opportunity for value investors.

The company is a global leader in digital satellites, space robotics, and geointelligence. The rising demand for its technology and offerings across communications, defence, and Earth observation augur well for growth. Further, the company’s strong balance sheet provides financial flexibility to pursue inorganic growth as the space economy continues to expand.

Cargojet

Cargojet (TSX:CJT) is another top value pick. Softer global trade and weaker international demand have weighed on its business segments and share price. While near-term headwinds persist, the company is well-positioned to rebound and likely to benefit from e-commerce tailwinds.

The company’s dominant position in Canada’s air cargo market adds resilience to its business. Moreover, its efficient fleet and long-term customer contracts add stability to its financials.

The recent renewal of key agreements with major customers, including Amazon and DHL, strengthens Cargojet’s outlook by improving earnings visibility and supporting cash flow stability. The company is likely to further benefit from the recovery in shipping volumes and improvement in demand across its charter and Aircraft, Crew, Maintenance, and Insurance (ACMI) operations.

SECURE Waste Infrastructure

SECURE Waste Infrastructure (TSX: SES) shares have retreated from their 52-week high, presenting a value-oriented entry point. The company operates a diversified portfolio of energy and waste infrastructure assets that deliver stable, recurring cash flow across commodity cycles.

Importantly, a significant share of revenue is tied to ongoing production and industrial activity rather than volatile drilling programs, helping insulate results from commodity price swings. Moreover, management’s continued focus on operational efficiency and disciplined cost controls supports margins.

Although the metals recycling segment faces near-term pressure from trade-related headwinds, conditions may improve as markets normalize. In the long run, new growth initiatives, an expected increase in oil and gas production, and completion of key infrastructure projects augur well for growth.

goeasy

goeasy (TSX:GSY) stock has lost considerable value after a short-seller report accused it of manipulating its accounts to boost earnings and hide credit losses. Further, higher credit-loss provisions in Q3 and rising financing costs irked investors.

Nonetheless, its fundamentals remain solid. goeasy is a leader in Canada’s large, underserved subprime market. Higher loan demand will drive its top line. Moreover, its diversified funding sources, omnichannel offerings, stable credit performance, and operating efficiency augur well for growth.

While goeasy’s focus on tightening its underwriting process and shift toward secured lending are weighing on the near-term yield, they are strengthening its loan portfolio and are likely to add a stable earnings base in the long term.

Lightspeed

Lightspeed (TSX:LSPD) is another undervalued stock to consider now. Shares of this Canadian tech company are trading at 0.9 times next-12-month enterprise value-to-sales, offering an attractive entry point for long-term investors.

Its average revenue per user is growing, and profitability is improving, supported by strong subscription and transaction-based margins and cost-control measures.

Further, the adoption of its products and services is improving across key growth markets, including retail in North America and hospitality in Europe. Lightspeed is also leveraging artificial intelligence (AI) technology to develop products and accelerate growth. Further, management expects free cash flow to break even or turn positive by fiscal 2026, which will likely drive its share price higher.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned.  The Motley Fool has positions in and recommends Cargojet. The Motley Fool recommends Amazon, Lightspeed Commerce, and Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy.

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