Two of the best businesses on the TSX are quietly sitting near multi-year lows. Eldorado Gold (TSX:ELD) and FirstService (TSX:FSV) have each fallen roughly 35% from their 52-week highs.
Both stocks are dealing with short-term headwinds. But their fundamentals remain intact. And when the clouds clear, early buyers tend to be rewarded handsomely.
Here is the case for each of the beaten-down TSX stocks.
Source: Getty Images
The bull case for this TSX mining stock
Valued at a market cap of $11.26 billion, Eldorado is a gold mining company. During its first-quarter (Q1) earnings call, Chief Executive Officer George Burns told investors that two major mines are nearing first concentrate production.
Skouries in Greece is roughly 94% complete, and the McIlvenna Bay in Saskatchewan is already in the hot commissioning phase, meaning ore is being fed into the system right now.
Once both mines are running, Eldorado’s production profile changes dramatically. The company goes from a pure gold producer to one with meaningful copper exposure.
In Q1, Eldorado reported revenue of US$532 million, an increase of 50% year over year, driven by higher gold prices, which averaged US$4,891 per ounce. It reported a net income of US$136 million, up from US$72 million in the year-ago period.
Notably, all-in sustaining costs rose to US$1,942 per ounce sold, largely due to higher royalty expenses tied to a stronger gold price environment.
Eldorado also explained that the Skouries capital budget was revised upward to US$1.315 billion as the company engaged additional European contractors to complete the electrical and instrumentation work more quickly, while keeping the Q3 startup timeline intact.
Burns put it plainly on the call: once the power gets connected, the mine starts running. That is the only variable left.
With a cash balance of US$630 million and over US$80 million in shares repurchased in Q1 alone, Eldorado is managing capital with discipline while pressing ahead on growth.
Is this TSX stock a good buy?
FirstService is one of the most durable growth businesses in Canada. It operates two divisions: a residential property management arm and a branded services platform covering restoration, roofing, fire protection, and home improvement.
In Q1, FirstService reported revenue of $1.32 billion, an increase of 5% year over year. Comparatively, adjusted earnings per share rose by 3% to $0.95.
The highlight of the quarter was FirstService Residential. The division grew revenue organically by 4% and expanded its EBITDA margin (earnings before interest, tax, depreciation, and amortization) by 50 basis points to 8.4%.
The gains were tied to AI-driven efficiency improvements in call centers, offshoring of accounting functions, and better portfolio management productivity. Chief Financial Officer Jeremy Rakusin confirmed similar margin expansion is expected in Q2.
Century Fire, one of FirstService’s strongest performers, posted over 10% revenue growth and high-single-digit organic gains. Its inspection and service business continues to grow regardless of the construction cycle.
What really stands out is the balance sheet. Liquidity sits above $1 billion, the highest in company history, while net debt to EBITDA is just 1.5 times.
The Foolish takeaway
Eldorado Gold is weeks away from a production inflection that could fundamentally reprice the stock. FirstService is absorbing short-term macro noise while its core business continues to compound.
Both stocks are down 35% from their highs. Both have the fundamentals to recover. Buying before that recovery becomes obvious is how long-term wealth gets built on the TSX.
