In at present’s unstable markets, savvy Canadian buyers are overlooking hidden gems with rock-solid fundamentals that scream worth proper now.
Listed here are three undervalued corporations providing compelling progress, yields, and stability sheets poised to ship as financial headwinds ease.
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Agnico Eagle Mines
Agnico Eagle Mines (TSX:AEM) is a sleeping large within the gold mining sector I’d argue buyers are ignoring amid ongoing sector noise.
That mentioned, the corporate’s fortress-like fundamentals make it a must-buy at present. Agnico simply posted blockbuster 2025 internet revenue of US$4.5 billion and boosted its quarterly dividend to US$0.45 per share with a tiny 23% payout ratio, and sits on a internet money hoard of over $2 billion after slashing debt. That’s spectacular. When favouring regular manufacturing progress at round 3.3–3.6 million ounces by way of 2028, there’s so much to love about this firm’s capability to develop consistent with rising gold costs over time.
With an inexpensive valuation in comparison with this sector common and loads of upside through its dividend (making this a complete return inventory), I feel the kind of portfolio security a inventory like Agnico can present is value contemplating at present.
Considered one of my favorite Canada-based small-cap gems, The Metals Firm (NASDAQ:TMC) is the last word neglected wager on the deep-sea minerals growth.
The corporate’s underlying enterprise mannequin positions TMC effectively for the type of explosive upside that Wall Road’s beginning to discover. Recent off a pivotal allowing milestone within the Clarion-Clipperton Zone, TMC boasts unique rights to polymetallic nodules value over $23 billion in-situ. This issue alone positions the corporate effectively to be the preeminent first-mover in mining the ocean ground for essential EV-critical metals like nickel and cobalt.
Regardless of adverse earnings at present, there’s so much to love concerning the firm’s projected output down the road. And with projected steady-state revenues more likely to are available in at 600 per dry ton over time, it is a firm pursuing a completely huge market with loads of upside if commercialization takes place prior to anticipated. That’s the kind of wager I feel is value making proper now, for these with some speculative capital to place to work.
Hydro One
Hydro One (TSX:H) is probably the neglected stepchild of the Canadian utility sector.
That’s unlucky as a result of Hydro One is the sleeping large within the utilities sector proper now. I’d argue that the corporate’s regulated monopoly on Ontario’s energy grid delivers predictable money flows 12 months after 12 months. In comparison with many flashy tech shares on the market, I’d take that stability all day lengthy.
Moreover, on the basics entrance, there’s so much to love. Hydro One’s full-year earnings per share simply hit $2.23 this previous quarter (up from $1.93 in 2024). And it’s anticipated that upcoming EPS numbers could possibly be even greater, as greater volumes and value controls enhance margins.
With an inexpensive payout ratio supporting a significant 2.4% yield, there’s so much to love concerning the firm’s stability, stability sheet, and whole return prospects over time. Certainly, for long-term buyers, what extra may you need?