The recent record market rally has made it really difficult for long-term investors to find Canadian stocks that still feel reasonably priced. Many familiar stocks are already trading near their all-time highs, which leaves investors wondering if the next big opportunity has already passed.
But there are still hidden gems trading below their intrinsic value. Even in a strong market, there are moments when short-term noise pushes even fundamentally solid companies out of favour. That disconnect can quietly open the door for patient investors who focus on long-term value rather than near-term headlines. In this article, I’ll talk about one undervalued Canadian stock that fits this setup and tell you why it could still turn into a millionaire-maker over time.
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A defensive Canadian business with everyday demand
One Canadian stock that currently fits this undervalued setup particularly well is Metro (TSX:MRU), a business many investors may be overlooking right now. As a food and pharmacy retailer, it has operations across Québec and Ontario. The company runs a large grocery network, growing discount banners, and a well-established pharmacy business. As of January 29, METRO shares trade at $90.41 per share, giving the company a market cap of about $19.3 billion.
Despite the strong broader market rally, MRU stock is down 1.3% over the last year, which explains why it looks undervalued compared to most of its peers. The company also rewards shareholders with dividends, currently offering a small but reliable 1.8% annualized yield. Interestingly, Metro recently raised its quarterly payout by about 10%, reflecting confidence in its cash flow stability.
Short-term pressure that weighed on Metro stock
In the first quarter of fiscal 2026 (three months ended in December 2025), Metro’s sales rose 3.3% YoY (year over year) to $5.29 billion. Its food same-store sales increased 1.6% from a year ago, or 1.9% after adjusting for the Christmas timing shift, while the company’s pharmacy same-store sales rose 3.9% YoY. More importantly, its online food sales jumped 25.8% YoY, highlighting continued strength in digital demand.
However, an issue that affected its results came from a temporary shutdown at its frozen food distribution centre in Toronto. This disruption led to $21.6 million in direct costs, which pushed its net earnings down 12.8% YoY. Once those one-time costs were removed, its bottom line looked strong as its adjusted earnings per share increased 5.5%, showing that Metro’s core business remains healthy.
Why Metro’s long-term story still supports big upside
Once these short-term disruptions fade, the long-term drivers behind this undervalued Canadian stock start to look strong. Recently, Metro confirmed that the distribution center issue is now behind it, with operations fully resumed. Meanwhile, the company continues investing across its supply chain and retail network, including automation initiatives in its pharmacy operations. These investments should improve its efficiency while protecting margins in a competitive environment.
At the same time, Metro is accelerating the expansion of its discount banners, with plans to open or convert about a dozen stores during the current fiscal year. This strategy could allow it to capture value-focused shoppers while maintaining strong private label offerings and customer loyalty programs.
While Metro may not deliver overnight gains, its great combination of dependable demand, disciplined growth, and shareholder returns makes it an attractive option for investors looking for an undervalued Canadian stock that could quietly build their long-term wealth.
