Tech stocks dominated the investment landscape last year, driven by artificial intelligence. However, the AI hype has hit the ceiling and is now over. Meanwhile, the Bank of Canada has completed its rate-easing cycle and is on a holding pattern. Value investing could be the theme in 2026, and a renaissance of value stocks is on the horizon in a steady rate environment.
Source: Getty Images
Deep value play
Rogers Communications (TSX:RCI.B) appears undervalued despite revenue growth in the wireless, cable, and media & sports business segments in Q3 2025. At $50.52 per share, the 5G stock is down 5.5% in the last three months. Market analysts recommend a buy rating and see 16.8% upside potential. The 4% dividend yield compensates for the temporary weakness.
In the three months ending September 30, 2025, revenue increased 3% year-over-year to $5.3 billion, while adjusted net income declined 5% to $726 million versus Q3 2024. According to Tony Staffieri, President and CEO of Rogers, Wireless and Cable had healthy margins.
The media and sports business delivered strong double-digit revenue growth (26%). Management said the world-class sports assets remain significantly unrecognized, but Rogers commits to unlocking value for shareholders.
As of this writing, the $27.4 billion communications and media company holds a 75% controlling interest in Maple Leaf Sports & Entertainment Ltd. (MLSE). Rogers believes the sports and media portfolio is a buffer for investors. The estimate exceeds $20 billion, yet it is not reflected in the stock price.
Global apparel leader
Gildan Activewear (TSX:GIL) is a value buy in the consumer discretionary sector. The $17 billion company has doubled in scale following the acquisition of HanesBrands in December 2025. Its President and CEO, Glenn J. Chamandy, said the combination of two iconic brands has unlocked a powerful engine for innovation and growth.
“Our priority now is to execute a seamless, collaborative integration that enables us to fully capture the value of our expanded platform,” Chamandy added. Gildan is known worldwide as the producer of t-shirts. A white t-shirt, for example, has no fashion risk and that will not change with consumer tastes.
Performance-wise, GIL is up nearly 7% year-to-date and has advanced nearly 28% in the last six months. At $91.69 per share, the apparel stock pays a modest 1.4% dividend. Market analysts recommend a strong buy rating, with upside potential of 7% to 37%.
Step-change in 2026
The narrative for Calian Group (TSX:CGY) has improved after management decided to sell non-core assets and implement an internal reorganization. This $716 million defence contractor has two high-margin segments: Defence & Space and Essential Industries.
According to its Chief Financial Officer, Patrick Houston, Calian’s core segments are well-positioned for a step-change in performance in fiscal 2026. At the end of Q4 fiscal 2025 (three months ended September 30, 2025), the total backlog was $1.4 billion. For the full fiscal year, new contract signings reached $1.1 billion.
If you invest today, the share price is $62.75, a new 52-week high. Analysts’ 12-month high-price target is $70 (+12%). The return potential is higher if you include the 1.8% dividend.
Take your pick
Take your pick among Rogers Communications, Gildan, and Calian. These dividend-paying value stocks have revenue and income visibility that should drive share prices higher in 2026.
