Canadian investors looking to beat broader market returns should identify a portfolio of companies across sectors that are growing steadily. In this article, I have identified three top Canadian stocks to buy right now with $5,000.
Let’s see why.
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Is this TSX stock still undervalued?
Valued at a market cap of $8.6 billion, B2Gold (TSX: BTO) is a Canada-based gold producer that has surged 87% over the last 12 months. B2Gold delivered strong third-quarter results with production exceeding expectations across its Fekola, Masbate, and Otjikoto mines.
However, operational challenges at its newly commissioned Goose mine forced the company to slash 2025 production guidance for that asset.
The miner reported adjusted earnings of US$0.14 per share and generated US$180 million in operating cash flow before working capital adjustments, benefiting from elevated gold prices.
Production outlook
The company achieved commercial production at Goose mine in October, just three months after the inaugural gold pour. But, crushing capacity shortfalls and delays accessing higher-grade ore from the Umwelt underground deposit forced it to revise production guidance down to between 50,000 and 80,000 ounces.
The gold miner implemented temporary mobile crushing units while permanent modifications to the primary crusher and secondary grinding circuits are being designed, with completion expected in 2026.
Underground mining at Umwelt commenced in late October and should ramp up quickly through year-end. Management maintained near-term production targets of approximately 250,000 ounces in 2026 and 330,000 ounces in 2027. It estimates an average annual output of 300,000 ounces over the initial six years.
B2Gold approved construction of the Antelope underground deposit in Namibia, with preproduction capital costs optimized down to US$105 million from the preliminary economic assessment estimate of US$129 million. Production from Antelope should boost Otjikoto output to approximately 110,000 ounces annually and extend mine life into the 2030s.
B2Gold ended the quarter with US$367 million in cash after drawing US$200 million on its revolving credit facility to manage working capital timing.
Analysts expect adjusted earnings per share to expand from US$0.52 in 2025 to US$1.02 in 2027. Even if the Canadian stock is priced eight times forward earnings, it could almost double over the next 12 months.
Is this TSX stock undervalued?
Valued at $146 million by market cap, Cardiol Therapeutics (TSX: CRDL) is a clinical-stage life sciences company. It focuses on the development of anti-fibrotic and anti-inflammatory therapies for the treatment of heart diseases.
Its lead product candidate is CardiolRx, which is in a Phase III multinational, randomized, double-blind, placebo-controlled study evaluating its efficacy and safety in acute myocarditis and for the treatment of recurrent pericarditis.
Cardiol is also developing CRD-38, an injection for subcutaneous administration, in preclinical development for the treatment of heart failure.
A pre-revenue company, Cardiol is forecast to grow revenue from $51.3 million in 2028 to $115.2 million in 2029. Analysts also expect the Canadian stock to turn free cash flow positive by 2028. Its FCF is forecast to improve from $9 million in 2028 to $51 million in 2029.
If Cardiol stock is priced at 10 times FCF, it could more than triple within the next four years.
The Foolish takeaway
Both B2Gold and Cardiol offer significant upside potential for shareholders in 2026. Moreover, B2Gold also offers additional diversification, given that gold has been viewed as a hedge against inflation and a store of value for several decades.
