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Undiscovered Canadian Gems To Explore This August 2024

In This Article:

The Canadian stock market has experienced notable volatility recently, with significant daily swings that ultimately resulted in only modest changes for the week. Despite these fluctuations, investors should maintain a balanced perspective and recognize potential opportunities in the small-cap sector. In this context, identifying undiscovered gems can be particularly rewarding as these stocks often have untapped growth potential and can provide diversification benefits amidst broader market movements.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

TWC Enterprises

6.74%

10.99%

25.68%

★★★★★★

Jaguar Mining

1.19%

5.49%

5.12%

★★★★★★

Taiga Building Products

NA

7.62%

15.46%

★★★★★★

Amerigo Resources

12.87%

7.49%

12.97%

★★★★★☆

Reconnaissance Energy Africa

NA

31.73%

-6.92%

★★★★★☆

Mako Mining

28.08%

39.01%

48.79%

★★★★★☆

Firan Technology Group

17.91%

3.75%

23.32%

★★★★★☆

Pizza Pizza Royalty

15.66%

3.64%

3.95%

★★★★☆☆

Queen's Road Capital Investment

7.20%

22.14%

22.20%

★★★★☆☆

Genesis Land Development

53.32%

25.58%

47.05%

★★★★☆☆

Click here to see the full list of 43 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

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

Lassonde Industries

Simply Wall St Value Rating: ★★★★★★

Overview: Lassonde Industries Inc., with a market cap of CA$1.15 billion, develops, manufactures, and markets a variety of ready-to-drink beverages, fruit-based snacks, and frozen juice concentrates in Canada, the United States, and internationally.

Operations: Lassonde Industries generates revenue primarily from the sale of ready-to-drink beverages, fruit-based snacks, and frozen juice concentrates across various markets including Canada and the United States. The company operates with a market cap of CA$1.15 billion.

Lassonde Industries has seen notable growth, with earnings surging 53.4% in the past year, outpacing the Food industry’s 34.8%. The company’s debt to equity ratio has improved significantly from 50.2% to 19.9% over five years, reflecting prudent financial management. Trading at 71.8% below estimated fair value, Lassonde appears undervalued while maintaining high-quality earnings and robust interest coverage (19.9x EBIT). Recent expansions include a USD 53 million investment in North Carolina for enhanced production and sustainability efforts.

TSX:LAS.A Earnings and Revenue Growth as at Aug 2024
TSX:LAS.A Earnings and Revenue Growth as at Aug 2024

Peyto Exploration & Development

Simply Wall St Value Rating: ★★★★☆☆