There are certainly plenty of undervalued stocks for investors to consider, and I’ve long believed the Canadian market is one that those seeking value should shop in. Indeed, I think it’s this valuation discrepancy that has driven much of the outperformance of the TSX relative to the U.S. and other highly valued developed markets over the course of the past year. I’m of the belief that this trend could continue, meaning there are some value opportunities to pursue here in January.
Without further ado, here are two of my top such value picks for investors in 2026.
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Whitecap Resources
At less than 10 times trailing and forward earnings, Whitecap Resources (TSX:WCP) is a company I’d distinctly put into the undervalued bucket.
Of course, I’ve also touted this stock as a monthly dividend champion (which it is). And Whitecap Resources is also a top growth play as well, with solid production growth from its core oil and gas properties boosting the company’s revenue, earnings, and cash flow in recent years.
I’m of the view that this growth will continue, allowing Whitecap to increase its dividend over time and provide a little bit of everything for all investors. For those looking to create an all-weather portfolio, and do so by picking individual stocks, this is a top idea for a core portfolio holding if I’ve ever heard of one.
Personally, I’d like to see Whitecap trade a little lower here for investors to be able to get in at an even better price. But with solid underlying fundamentals and a multiple that’s below 10, it’s hard to find better value in the market today in my view.
Restaurant Brands
Another top pick of mine, for a wide range of reasons, has been Restaurant Brands (TSX:QSR). Indeed, this is a stock I’ve been hammering the table on for more than five years, and I stand by my buy recommendations along the way.
I have to admit, I haven’t seen the kind of organic growth I was hoping for years ago when I made my first bullish call on Restaurant Brands. And over this timeframe, it has certainly been a bumpy ride. Plenty of menu changes, acquisitions, and announcements have been made over this period of time.
That said, Restaurant Brands’ core portfolio of world-class fast food banners is second to none. With Canada’s favourite Tim Horton’s and large U.S.-based chains such as Burger King and Popeye’s headlining Restaurant Brands’ growing portfolio of restaurants, this is a company with thousands of locations around the world that’s worth considering right now.
What I’m particularly focused on is this company’s current forward price-earnings multiple. At just 12.5 times forward earnings, QSR stock is trading as if it’s a very slow-growth or mature name. I don’t think that will end up being the case, with Restaurant Brands’ growth profile superior to many of its large-cap peers.
For those thinking the same way, I do think Restaurant Brands is a screaming buy here, and I’m going to continue to pound the table on this one until something materially changes.
