This earnings season has passed and left many investors feeling unsatisfied with all the disappointing results. However, it has also set low expectations that most investors will carry till the next season. This is an opportunity for savvier investors to identify undervalued stocks that might not look great right now but become no-brainer buys later.
Today, we’re going to be looking at three TSX stocks that fit the bill for appearing to be messy investments, but might go through the kind of turnarounds that make them winners for your self-directed investment portfolio.
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Magna International
Magna International (TSX: MG) is a $23.85 billion market-cap company that holds the position of being Canada’s biggest auto supplier. The company makes its own vehicles, but primarily focuses on providing vision and power systems, seating, body structures, vehicle assemblies, and more to manufacturers.
Lower vehicle production amid the tariff-fueled developments has led to issues for auto suppliers. Despite the headwinds, Magna has performed well in the first quarter of Fiscal 2026. The company’s sales increased by 3% year over year. While the company had to reduce its full-year sales guidance from US$43.1 billion to US$41.5 billion due to tariffs, the move can benefit the stock and its investors if it beats expectations.
Nutrien
Nutrien (TSX: NTR) is one of the world’s most important providers of ingredients critical to large-scale agriculture. The scale of farming operations required to meet global food requirements necessitates high-quality agricultural inputs to increase yields. Nutrien happens to be one of the biggest producers of phosphates and nitrogen. Fertilizer markets are facing challenges due to global supply chain issues.
The problem is leading to increased prices for crop inputs. Higher prices can mean better profit margins for the $46.91 billion market-cap crop nutrient company. Trading at only 14.6 times earnings, it might not be the cheapest stock on paper. However, strong future demand means the ability to generate significant cash flows. I think this stock has plenty of upside that investors can capture by investing at current levels.
Teck Resources
Teck Resources (TSX: TECK.B) is a $44.02 billion market capitalization company that focuses on providing metals essential to the energy transition and economic development, and it does so responsibly. It has a globally diversified portfolio of copper and zinc mining operations, and a copper growth pipeline that is second to none in the industry.
Copper demand is only going to grow in the coming decades, and the company’s merger with Anglo American is setting itself up to become one of the world’s largest copper producers. If successful, this move can cement Teck Resources stock into an unbeatable position. Copper prices will eventually increase amid growing demand. Investors interested in this sector of the economy might be wise to add TECK.B to their self-directed investment portfolios.
Foolish takeaway
The next round of earnings could provide better clarity on which stocks are the winners and which look like value traps. Together, these three stocks offer the kind of long-term appeal and earnings momentum that can turn into a massive surge in tailwinds when the next earnings arrive.
