Blue-chip stocks don’t usually stay undervalued for long as they have strong fundamentals, proven business models, and a long history of delivering steady returns. So when one of them pulls back, it tends to catch the attention of long-term investors looking for quality at a better price.
And this is exactly the setup many investors look for – a reliable company dealing with temporary market concerns, not long-term problems. In this article, I’ll highlight a well-known Canadian blue-chip stock that appears to be trading at an attractive level right now.
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Why Thomson Reuters remains a strong business
The large-cap stock I find undervalued right now is Thomson Reuters (TSX: TRI), a globally well-known firm in professional information services. It provides content-driven solutions to law firms, corporations, governments, and media organizations. Its platforms are increasingly powered by advanced technologies, including generative artificial intelligence (AI).
TRI stock currently trades at $132.44 per share with a market cap of $58.8 billion. Despite the underlying strength of its fundamentals, the stock has tanked by nearly 47% over the last year – making it look cheap to buy now.
Consistent growth with a strong revenue base
In 2025, Thomson Reuters delivered total revenue growth of 3% year-over-year (YoY) to US$7.5 billion, while its organic revenue growth came in at a stronger 7%. Much of this increase was driven by its core segments (Legal Professionals, Corporates, and Tax & Accounting Professionals), which together contributed 82% of total revenue and grew organically by 9%.
Meanwhile, the company’s profitability also improved as its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 6% YoY to US$2.9 billion, with margins expanding to 39.2%.
A key strength here is Thomson Reuters’s strong recurring revenue base. About 81% of its total revenue comes from recurring sources, providing stability and predictability. Even though its Global Print segment declined by 6%, the overall business continues to shift toward higher-growth digital offerings.
AI-driven innovation shaping the future
One of the most compelling parts of the Thomson Reuters story is its investment in AI. Its AI platform, CoCounsel, has already been adopted by one million professionals across 107 countries. This tool is designed to help professionals complete complex tasks more efficiently by delivering accurate, citation-backed insights.
The next version of CoCounsel is expected to go even further, allowing users to interact with it in a more conversational way and automate multi-step workflows. The company also plans to expand these AI capabilities into areas like tax and enterprise solutions. These innovations could become major growth drivers as demand for AI-powered productivity tools continues to surge.
Why this Canadian stock looks undervalued right now
Going forward, Thomson Reuters expects its organic revenue growth to be around 7.5% to 8% in 2026. The company also aims to expand its EBITDA margin by about 100 basis points from the current 39.2%. Its free cash flow is projected to reach about US$2.1 billion, which could further support shareholder returns.
For long-term investors, these projections make it look like a business that is not only stable but also evolving with technology trends. Its solid recurring revenue base, growing AI capabilities, and disciplined capital allocation make it a really attractive blue-chip stock to buy on the dip right now.
