The TSX is still trading near all-time highs. If you’re like me, maybe you’re hesitant to pay up for stocks at this time. Maybe you’re looking for some undervalued Canadian stocks to buy. As they say, there’s always an opportunity to buy undervalued stocks in every market.
In this article, I’ll discuss three undervalued Canadian stocks to buy without delay, because they won’t be this way forever.
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BCE
As one of Canada’s telecom giants, BCE (TSX:BCE) has felt the sting of a changing industry. Increased competition, lower mobile prices, and a general sense of diminishing returns have hit BCE stock. As you can see from the graph below, BCE’s stock price has been hit hard, down more than 50% from its 2022 highs.
This is something that few would have predicted. Yet, the stock was taken down. And it remains below $40 today. But BCE stock has responded to its new, more difficult environment. It has cut costs, reduced the capital intensity of the business, and is pursuing new avenues of growth.
All told, current expectations are calling for earnings per share (EPS) of $2.50 to $2.65 in 2026. This represents a decline of 5% to 11%, due to higher depreciation, amortization, and interest expense. Trading at 14 times earnings at the midpoint of the guidance EPS range. Yet, this is not an easy situation. Growth is challenged, and the pressure on BCE’s mobile business is real. But this undervalued Canadian stock is likely to benefit from its leading fibre network, its Ziply acquisition, artificial intelligence solutions, and its leaner, stronger financial makeup in the coming years.
Cineplex
As one of Canada’s leading entertainment companies, Cineplex (TSX:CGX) has a dominant market share in the movie exhibition industry. So why are its shares so cheap? Well, the problem here is the movie exhibition industry. It’s hit some real challenges with the advent of streaming, and, of course, the pandemic hurt as well.
Today, attendance at Cineplex is low relative to historical levels, but it’s also quite volatile. What this means to me is that consumers still like to attend movie theatres, they just need quality content to get themselves there. Attendance increases with the right content. The fact that Netflix has walked away from its proposed Warner Brothers acquisition is a positive for Cineplex, its content, and the movie exhibition industry in general.
In Cineplex stock’s latest quarter, the company reported another disappointing result, with EPS coming in at $0.01 versus expectations that were calling for $0.19. Cineplex’s free cash flows paint a better picture for the company. In 2025, free cash flow came in at $92 million, 15% higher than the prior year. For this year, analyst expectations are calling for Cineplex stock to report EPS of $0.39 and for 2027, Cineplex stock is expected to generate $0.71 in EPS.
CGI Inc.
Finally, CGI (TSX:GIB.A) is another undervalued Canadian stock. CGI is a leading information technology (IT) company that’s diversified across industries served and countries. It’s a stock that’s also been hit hard in the last year — down 34%. Yet, its results remain impressive.
In the company’s latest quarter, the fourth quarter of 2025, revenue increased 9.7% to $4.01 billion. Also, adjusted EPS increased 10.9% versus the prior year, and operating cash flow came in at $663 million or 16.5% of revenue. Finally, CGI’s backlog currently sits at a very healthy $31.32 billion. Despite demand concerns due to uncertainty in its U.S. government business and the economy, the business remains strong.
CGI stock remains one of the best tech stocks to buy for long-term returns.
The bottom line
Undervalued Canadian stocks don’t stay undervalued forever. Consider buying these three stocks for long-term wealth creation. “Buy when everyone is selling.”
