Here Are My Top 4 Undervalued Stocks to Buy Right Now

The Canadian stock market continues to climb higher, even amid tariff-related uncertainty. The S&P/TSX Composite Index has surged close to 24.7% this year, supported by interest rate cuts and resilient consumer spending. Thanks to the economy’s resilience, many Canadian stocks have delivered impressive year-to-date gains. However, shares of several fundamentally sound companies are still undervalued, making them too cheap to miss.

Against this background, here are my top four undervalued stocks to buy right now.

Undervalued stock #1: MDA Space

MDA Space (TSX:MDA) could be a compelling value addition to your portfolio. Shares of this space technology company have plunged almost 48% in the past three months after EchoStar cancelled a major satellite contract.

While loss of a significant contract was a notable setback, the company remains a key player in digital satellites, robotics, and geointelligence. These technologies are seeing a rising global demand for secure communications, military readiness, and real-time Earth monitoring. Thus, this decline presents a compelling buying opportunity.

With NATO and allied nations boosting defence spending, space infrastructure is becoming a top priority, positioning MDA for stronger long-term demand. Interest in new satellite constellations continues to rise, while the company’s robotics and space operations are winning business from both commercial and government customers. Its Earth-observation services also benefit from steady growth in climate and security applications.

Overall, strong demand, solid backlog, and its healthy balance sheet position MDA Space stock to recover swiftly and deliver significant gains.

Undervalued stock #2: Cargojet

Cargojet (TSX:CJT) stock is another compelling bet. Shares of this leading air cargo company are down about 25% year to date as softer global trade and weaker international demand have weighed on its ACMI and Charter segments. Still, the company remains Canada’s dominant player in time-sensitive air cargo, supported by efficient operations and multi-year customer contracts that provide stability through economic cycles.

Renewed agreements with major clients like Amazon and DHL strengthen its revenue base and support earnings resilience. Despite recent industry headwinds, Cargojet continues to deliver strong earnings before interest, taxes, depreciation, and amortization (EBITDA) margins and is well-positioned to benefit as shipping volumes recover and e-commerce penetration increases.

With seasonal holiday demand typically boosting fourth-quarter performance and management focused on capital-light growth, Cargojet’s long-term fundamentals remain compelling. Thus, the current dip presents a compelling entry point for long-term investors.

Undervalued stock #3: goeasy

goeasy (TSX:GSY) is going through a rough patch, with its stock declining about 39% in the last three months. The stock started tumbling after a short-seller report accused the subprime lender of manipulating its accounts to boost earnings and hide credit losses. While goeasy rejected the short-seller’s claims and reaffirmed its financial outlook, it didn’t sit well with investors.

Adding to the challenges, pressure from higher credit-loss provisions and rising financing costs weighed on its bottom line. Most recently, the company’s CEO also decided to step down, citing health reasons.

Despite these challenges, goeasy is still a compelling long-term investment. It continues to operate in a large, underserved subprime market with resilient loan demand and improving credit performance. Its diversified funding and efficient omnichannel model provide additional support. Management is tightening underwriting and shifting further toward secured lending, a move that could reduce future risk and steady profitability.

With the stock now trading at what appears to be a discounted valuation and offering a 4.5% dividend yield, goeasy looks like an attractive long-term bet.

Undervalued stock #4: Lightspeed

Lightspeed (TSX:LSPD) is another cheap stock to consider now. Shares of this Canadian tech company are trading at 0.8 times next-12-month enterprise value-to-sales, offering an appealing entry point for long-term investors.

While the stock has underperformed this year, the company’s turnaround plan is gaining momentum. Its average revenue per user is growing, and profitability is improving, supported by strong subscription and transaction-based margins and cost-control measures. Further, the adoption of its products and services is improving across key growth markets, including retail in North America and hospitality in Europe.

Lightspeed is also leveraging AI technology to develop products and accelerate growth. Further, management expects free cash flow to break even or turn positive by fiscal 2026. In short, with improving fundamentals, growing product adoption, and a valuation that leaves room for upside, Lightspeed is a compelling investment option.

The post Here Are My Top 4 Undervalued Stocks to Buy Right Now appeared first on The Motley Fool Canada.

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More reading

• TSX Today: What to Watch for in Stocks on Wednesday, December 3
• 3 of the Best Stocks TFSA Investors Can Buy Now
• 1 Magnificent Canadian Stock Down 52% to Buy and Hold Forever
• 3 No-Brainer TSX Stocks to Buy With $500
• 3 Top Canadian Stocks to Enhance Your TFSA

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cargojet. The Motley Fool recommends Amazon and Lightspeed Commerce. The Motley Fool has a disclosure policy.