Some of the most interesting investment opportunities appear before a stock becomes widely popular. A weak share price or a period of business transition can cause investors to overlook a company even when its underlying operations are improving. However, that disconnect creates an attractive entry point for patient Foolish investors.
Here are three TSX stocks with strong financial trends and long-term growth drivers that look undervalued based on their long-term growth prospects.
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Opentext stock
The first stock that looks undervalued before the crowd catches on is OpenText (TSX: OTEX). This Canadian technology firm helps businesses manage, protect, and analyze their data.
OpenText stock currently trades at $34.97 per share with a market cap of $8.5 billion. It also rewards investors with a 4.6% annualized dividend yield. Despite its stable financial growth trends, OTEX stock is down about 22% in 2026, making it look cheap.
In the third quarter of its fiscal year 2026 (ended in March), the company’s cloud revenue rose 6.6% year-over-year (YoY) to US$493 million as demand continued for its cloud-based data management and enterprise artificial intelligence (AI) offerings. As a result, its total revenue grew 2.2% YoY to about US$1.3 billion.
On the profitability side, OpenText’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 10.8% YoY to US$438 million.
OpenText has now delivered cloud growth for 21 consecutive quarters. A new chief executive officer is now leading the business as it continues investing in cloud services and enterprise AI.
For investors willing to look past the recent share-price decline, OpenText offers a mix of income, improving profits, and long-term technology growth.
MDA Space stock
Another stock that may not be fully priced for its long-term potential is MDA Space (TSX: MDA). It builds satellites, robotics systems, and geointelligence technology.
Its shares trade at $42.26 apiece, and the company has a market cap of $6.8 billion. The stock has already gained 59% in 2026, but remains nearly 36% down from its 52-week high despite its expanding business.
In the first quarter, MDA’s revenue jumped 32.2% YoY to about $464 million, backed by higher work volumes across all three business areas. At the same time, its adjusted EBITDA rose 32.1% to about $91 million.
Notably, the company’s long-term growth prospects are backed by a $3.7 billion backlog and a broader opportunity pipeline valued at about $40 billion.
Although the stock has already performed well this year, the company’s solid backlog, contract wins, and expanding market reach give it several ways to keep growing. That makes MDA Space an appealing name for long-term investors, especially as it currently trades well below its 52-week high.
B2Gold stock
B2Gold (TSX: BTO) rounds out this list with strong cash flow, global gold production, and direct shareholder returns. The Vancouver-based miner operates in Canada, Mali, Namibia, and the Philippines.
BTO stock trades at $5.43 per share and carries a market cap of $7.2 billion. It also offers a 2% annualized dividend yield. Even with strong gold prices, BTO shares remain down roughly 12% this year.
The company produced 237,763 ounces of gold in the first quarter as each of its operating mines exceeded management’s production expectations. As a result, its revenue more than doubled to about US$1.2 billion from US$532.1 million a year ago.
For the quarter, the gold producer generated US$361.8 million in free cash flow, compared with negative free cash flow in the same quarter last year.
B2Gold has several development and exploration projects underway, giving it potential sources of future production growth. Combined with its stronger balance sheet and shareholder returns, those projects make BTO stock an attractive option for investors seeking an overlooked gold producer with improving fundamentals.
