Despite Canadian stocks rising to an all-time high in 2025 and outperforming many major global indices over the course of the year, the good news is that there are plenty of undervalued stocks worth considering at this point in time.
Achieving millionaire status can come via a variety of routes. Investors can choose to load up on growth stocks (and that’s a strategy that’s paid off over the course of the last decade, to say the least), create passive income via holding dividend stocks, or look for value.
In my view, 2026 is most likely to be described as a year in which value stocks outperform. With that in mind, here’s one of my top picks in this category for those looking to beat the market this year.
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Whitecap Resources
I’ve ramped up my coverage on Whitecap Resources (TSX: WCP) as a top way for investors to play the energy sector heading into 2026.
Looking at the chart above, this has been a solid call. Of course, there are a number of different angles investors can take with this stock, as reasons to buy. With a 6.3% dividend yield (paid monthly), there’s a clear dividend angle to holding this stock. Indeed, I’ve discussed this thesis in the past, and it still stands.
And with a rock-solid balance sheet and impressive production growth in recent years, I’d also argue there’s a solid growth thesis to holding Whitecap here. If the company is able to continue to grow its production at the clip it has in past quarters, in combination with the potential for commodity price improvement (thanks in part to ongoing geopolitical turmoil), this is a stock that could really take off.
That said, there’s also a solid value thesis to buying WCP stock here and holding for the long term.
What’s the rub?
Whitecap’s valuation of just 10.2 times trailing earnings and less than 10 times forward earnings is ridiculously cheap for a company of this caliber. As a mid-cap energy company, Whitecap has much more upside potential than the large or mega-cap names in this space. And while those companies may provide increased stability relative to Whitecap, I think this company’s upside potential more than makes up for the size differential at hand.
For those looking for a top-tier value, dividend and growth stock with the potential for double-digit total returns over the long-haul, Whitecap looks like a no-brainer to me at current levels.
