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3 Undiscovered Canadian Gems To Enhance Your Portfolio

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As we navigate the Canadian market landscape in 2025, investors are contending with rising government bond yields and political shifts that have introduced a layer of uncertainty. Despite these challenges, maintaining a diversified portfolio remains crucial, particularly as opportunities arise to invest in overlooked small-cap stocks that offer potential growth and value. Identifying good stocks often involves looking for those with solid fundamentals and the ability to thrive amid economic fluctuations, making them valuable additions to any portfolio seeking resilience and growth.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Reconnaissance Energy Africa

NA

9.16%

15.11%

★★★★★★

Minsud Resources

NA

nan

-29.01%

★★★★★★

Amerigo Resources

14.04%

7.04%

11.73%

★★★★★☆

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%

★★★★☆☆

Genesis Land Development

47.40%

28.61%

52.30%

★★★★☆☆

DIRTT Environmental Solutions

58.73%

-5.34%

-5.43%

★★★★☆☆

Click here to see the full list of 46 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Extendicare

Simply Wall St Value Rating: ★★★★☆☆

Overview: Extendicare Inc., with a market cap of approximately CA$860.54 million, operates through its subsidiaries to provide care and services for seniors in Canada.

Operations: Extendicare generates revenue primarily from Long-Term Care (CA$808.94 million) and Home Health Care (CA$545.46 million), with additional income from Managed Services (CA$70.43 million).

Extendicare, a smaller player in the healthcare sector, has shown impressive financial strides recently. Its debt-to-equity ratio decreased from 412.5% to 244.3% over five years, indicating improved financial management. The company’s interest payments are well-covered by EBIT at 8.4 times, showcasing robust earnings quality. Notably, earnings surged by 261%, outpacing the healthcare industry's growth of 11%. With a price-to-earnings ratio of 13.5x below the Canadian market average of 14.2x, it presents an attractive valuation for investors seeking value in under-the-radar stocks in Canada’s healthcare landscape.

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

High Liner Foods

Simply Wall St Value Rating: ★★★★★☆