Undervalued Stocks in Canada’s 2025 Market: Opportunities Hiding in Plain Sight
In the shifting landscape of the Canadian stock market, 2025 offers compelling prospects for investors seeking undervalued gems. While tech darlings and energy giants grab headlines, a variety of Canadian stocks are quietly trading below their intrinsic value—primed for recovery and long-term growth. Here is a fresh, research-driven look at several standout undervalued stocks that could outperform in the year ahead.
MDA Space: The Quiet Space Innovator
MDA Space blends advanced robotics, satellite systems, and AI-driven geo-intelligence. Despite rapid growth and impressive contract wins in recent quarters, its valuation remains conservative compared to sector peers. The company recently reported a double-digit surge in revenue and EBITDA, fuelled by the increasing demand for Earth observation, satellite communication, and national security solutions tied to the broad modernization of both civilian and military infrastructure. As governments invest more in space and climate intelligence, and as satellite internet coverage expands, MDA Space’s strong backlog and diversification position it for sustained outperformance. For investors, this is a chance to get in before these tailwinds are fully recognized by the broader market.
TFI International: A Freight Recovery Story
Canada’s transportation sector felt the sting of freight recessions and new tariffs, resulting in price pullbacks for well-managed players like TFI International. With a history of smart acquisitions and operational improvements under a proven management team, TFI offers solid fundamentals and a record of compounding shareholder wealth. Despite recent earnings challenges, the company’s long-term prospects—driven by North American e-commerce, supply chain modernization, and strategic expansion—make its current valuation particularly attractive for patient investors seeking value with upside potential.
Total Energy Services: Undervalued Infrastructure in a High-Demand Sector
While volatile energy prices often leave investors skittish, Total Energy Services has repositioned itself as a lean, focused provider of infrastructure services aligned with Canada’s LNG (liquefied natural gas) expansion. As global demand for clean-burning natural gas accelerates and major Canadian projects advance toward completion, Total Energy stands to benefit from increasing capital expenditures and operational volumes. The stock is flying under the radar, offering exposure to secular trends in energy transition at a valuation not yet reflective of these coming catalysts.
Calian Group: Defense, Security, and Robust Diversification
Calian Group is an often-overlooked player in defense technology, IT services, and health solutions. With federal budgets supporting defense and border security, Calian’s diversified platform covers both public and private sector contracts, reducing risk and creating recurring revenue streams. Continued organic growth and disciplined M&A activity keep the company’s valuation relatively low compared to its underlying cash flows and backlog. As defense spending rises and IT modernization remains a priority, Calian’s multiple business lines could converge for strong appreciation.
H&R REIT: Turnaround Potential in Commercial Real Estate
The commercial real estate Recovery in Canada remains uneven, which has left H&R REIT’s unit price trailing its asset value. However, the company’s management has been responding aggressively to sector challenges by streamlining its portfolio, disposing of non-core assets, and attracting the attention of activist investors. As interest rates stabilize and private equity circles sector bargains, the risk-reward equation for patient investors becomes increasingly attractive, especially if broader sentiment on REITs reverses in the second half of 2025.
Propel Holdings: Disrupting the Credit Market
Propel Holdings specializes in technology-driven lending for underbanked Canadians, using data, automation, and geographic reach for disciplined growth. With rising rates and tighter credit putting pressure on traditional lenders, Propel’s nimble, tech-enabled approach gives it an advantage in the evolving fintech landscape. The company’s earnings forecasts point to robust growth, but shares continue to trade at modest earnings multiples, giving investors a rare opportunity for value-driven
Also Read- https://stockkey.ca/best-stocks-to-invest-in-canada-for-long-term/
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