2 Overlooked Canadian Stocks with Big Upside Potential

Valuations across Canadian sectors often depend on how closely investors and analysts are watching certain companies. When attention is limited, strong businesses can fly under the radar — and that’s where some of the best long-term opportunities emerge. Many Canadian stocks remain underfollowed and undervalued despite impressive growth potential.

Here are two such companies that deserve a closer look.

Also Read: Best Dividend Paying Stocks Canada

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) may boast a market cap approaching $65 billion, but it’s still relatively unknown outside Canada — an oversight by many global investors.

The company made headlines in recent years for its ambitious acquisition attempts, including bids for Japan’s 7-Eleven and a major French grocery chain. While some of these deals didn’t materialize, they show Couche-Tard’s appetite for global expansion.

After years of rapid growth through acquisitions, the pace of same-store sales and deal-making has slowed, causing its stock momentum to ease. Still, the company retains a powerful balance sheet and a proven strategy in an industry that remains highly fragmented — most gas stations and convenience stores worldwide are still independent operators.

With financial flexibility, scale advantages, and a reasonable valuation paired with a modest dividend yield, Couche-Tard continues to offer strong long-term appeal for patient investors.

Also Read: Best Growth Stocks to Buy Now

Manulife Financial

Manulife Financial (TSX:MFC) is a household name in Canada’s insurance sector, yet it remains surprisingly underappreciated on the global stage. While smaller than some international peers, Manulife’s growth trajectory suggests plenty of upside potential.

After lagging in previous downturns — particularly during 2021 and 2022 — the insurer’s stock has rebounded sharply as investor sentiment toward the insurance industry improves. Previously trading at deeply discounted valuations, Manulife shares have since climbed back toward their historical averages.

The company’s ongoing expansion in wealth management and rapid growth in Asia, especially in China, could drive stronger-than-expected earnings in the years ahead. Despite its recent rally, Manulife still appears undervalued relative to its global peers, making it a compelling buy for investors seeking steady growth and income.

Bottom Line:

Both Alimentation Couche-Tard and Manulife Financial exemplify the kind of overlooked Canadian stocks that can deliver strong returns for investors willing to look beyond the obvious names.