When investors hear “rock-bottom stocks,” they often think of companies that have recently crashed, are trending down, or sit in the realm of speculative penny stocks. But the true value lies not in hype, but in fundamentals. A stock trading at a depressed valuation—despite improving or stable business performance—can be the real definition of “rock bottom.”
Here are three Canadian stocks that, based on fundamentals, still trade at attractive valuations and could offer significant upside—ideal candidates if you’ve got $3,000 to invest today.
Also Read: High growth Canadian stocks 2025
- Algonquin Power & Utilities (TSX:AQN)
Dividend Yield: ~4.8% | Price-to-Book: ~0.9x
Algonquin Power has been repositioning itself as a pure-play regulated utility, moving away from its prior mix of renewable and unregulated energy assets. Despite a dip in adjusted earnings in Q2, the company continues to push forward with plans for around $2.5 billion in utility-focused capital expenditures from 2025 to 2027.
Yes, its debt is still high—$6.3 billion—but it’s worth noting that the company has already started reducing it. After cutting its dividend a few years ago, it now offers a sustainable 4.8% yield, and more importantly, the payout is now well-covered.
Trading at just 0.9 times book value, AQN stock appears significantly undervalued. As its strategy takes hold and the balance sheet improves, the stock has room to run—and today’s share price could be considered a long-term bargain.
Also Read: How to start investing Canada
- Hydro One (TSX:H)
Dividend Yield: ~2.7% | Regulated Utility Stability
If you want a stable, defensive stock backed by government-regulated income, Hydro One is a standout pick. The company posted strong Q2 results, with rising revenue, operating cash flow, and net income. Even with ongoing infrastructure investment, the utility’s cash flows remain predictable and resilient.
This predictability helps support Hydro One’s growing dividend, currently yielding around 2.7%. Backed by the Ontario government and playing a central role in the province’s electrification and energy modernization, Hydro One offers low-volatility, recession-resistant exposure to the utilities sector.
It may not deliver explosive growth, but for long-term investors looking for safety, dividend consistency, and modest appreciation, Hydro One is an excellent core holding—especially at current levels.
- NorthWest Healthcare Properties REIT (TSX:NWH.UN)
Dividend Yield: ~7% | Turnaround Potential
NorthWest Healthcare was a pandemic-era favorite, quickly expanding its portfolio of global healthcare properties during a time of ultra-low interest rates. However, its rapid expansion led to overextension, and the company has since been forced to divest assets and restructure to stabilize its financials.
The good news? That turnaround is already underway. In Q2, NWH reported a 97% occupancy rate and an average lease term of 13.5 years—indicating highly stable tenant relationships. Leverage has improved to 48.5%, and management continues to focus on deleveraging and improving cash flow.
Despite the past struggles, the REIT still offers a generous 7% dividend yield, and operates in a defensive sector—healthcare real estate. With fundamentals showing improvement and sentiment still low, now could be the perfect time to scoop up shares while they remain near the bottom.
Bottom Line
Don’t be fooled by the flash of penny stocks or recent selloffs. True “rock-bottom” stocks are those with solid underlying businesses that the market has temporarily mispriced.
With Algonquin Power, Hydro One, and NorthWest Healthcare, investors have a chance to lock in strong dividends and potential upside—all while the valuations still look compelling. If you’ve got $3,000 ready to deploy, these names deserve a serious look.
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