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3 Canadian Undiscovered Gems With Promising Potential

In This Article:

As the Canadian market navigates the uncertainties surrounding new U.S. policies on tariffs and energy, the TSX index has shown resilience, buoyed by a solid economic backdrop and potential interest rate adjustments from the Bank of Canada. In this environment, identifying stocks with strong fundamentals and growth potential becomes crucial for investors seeking opportunities amidst broader market dynamics.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

TWC Enterprises

6.24%

12.63%

23.89%

★★★★★★

Reconnaissance Energy Africa

NA

9.16%

15.11%

★★★★★★

Minsud Resources

NA

nan

-29.01%

★★★★★★

Lithium Chile

NA

nan

42.01%

★★★★★★

Maxim Power

25.01%

12.79%

17.14%

★★★★★☆

Mako Mining

10.21%

38.44%

58.78%

★★★★★☆

Grown Rogue International

24.92%

19.37%

188.55%

★★★★★☆

Corby Spirit and Wine

65.79%

7.46%

-5.76%

★★★★☆☆

Petrus Resources

19.44%

17.20%

46.03%

★★★★☆☆

Dundee

3.76%

-37.57%

44.64%

★★★★☆☆

Click here to see the full list of 47 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Héroux-Devtek

Simply Wall St Value Rating: ★★★★★★

Overview: Héroux-Devtek Inc. specializes in the design, development, manufacture, and repair of aircraft landing gears and related components, with a market cap of approximately CA$1.09 billion.

Operations: Héroux-Devtek generates revenue primarily from its aerospace segment, amounting to CA$694.73 million. The company's market cap is approximately CA$1.09 billion.

Héroux-Devtek, a notable player in the Aerospace & Defense sector, has demonstrated impressive financial resilience. Recent earnings showed net income at C$9.96 million for Q2 2024, up from C$4.63 million the previous year, with sales climbing to C$173.16 million from C$141.5 million. The company's debt management is commendable with a net debt to equity ratio of 26.5%, down from 58.9% over five years, and interest payments well covered by EBIT at 5.4x coverage. Trading significantly below its estimated fair value suggests potential upside for investors eyeing growth opportunities in this space.

TSX:HRX Debt to Equity as at Jan 2025
TSX:HRX Debt to Equity as at Jan 2025

Maxim Power

Simply Wall St Value Rating: ★★★★★☆

Overview: Maxim Power Corp. is an independent power producer that focuses on acquiring, developing, owning, and operating power and power-related projects in Alberta, Canada with a market cap of CA$388.53 million.

Operations: Maxim Power generates revenue primarily from its power generation facilities, amounting to CA$116.42 million. The company's financial performance is highlighted by a focus on optimizing its operations within the Alberta region.


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