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Best-In-Class Undervalued Stocks

Companies, such as GDI Integrated Facility Services, trading at a market price below their true values are considered to be undervalued. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.

GDI Integrated Facility Services Inc. (TSX:GDI)

GDI Integrated Facility Services Inc. operates in the outsourced facility services industry. The company currently employs 20000 people and with the market cap of CAD CA$334.24M, it falls under the small-cap category.

GDI’s stock is currently floating at around -53% less than its true level of $33.74, at a price of CA$15.74, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. What’s even more appeal is that GDI’s PE ratio is currently around 31.05x compared to its Commercial Services peer level of, 31.45x suggesting that relative to its comparable set of companies, we can buy GDI’s stock at a cheaper price today. GDI is also a financially healthy company, as current assets can cover liabilities in the near term and over the long run.

Continue research on GDI Integrated Facility Services here.

TSX:GDI PE PEG Gauge Mar 12th 18
TSX:GDI PE PEG Gauge Mar 12th 18

Canfor Pulp Products Inc. (TSX:CFX)

Canfor Pulp Products Inc., together with its subsidiaries, produces and supplies pulp and paper products worldwide. Formed in 2010, and headed by CEO Donald Kayne, the company employs 1,279 people and with the market cap of CAD CA$1.07B, it falls under the small-cap stocks category.

CFX’s stock is currently trading at -22% beneath its actual worth of $20.98, at a price of CA$16.43, based on its expected future cash flows. This mismatch indicates a chance to invest in CFX at a discounted price. Moreover, CFX’s PE ratio is trading at 10.6x relative to its Forestry peer level of, 11.61x implying that relative to its comparable set of companies, you can purchase CFX’s stock for a lower price right now. CFX also has a healthy balance sheet, with current assets covering liabilities in the near term and over the long run. CFX also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Interested in Canfor Pulp Products? Find out more here.

TSX:CFX PE PEG Gauge Mar 12th 18
TSX:CFX PE PEG Gauge Mar 12th 18

Laurentian Bank of Canada (TSX:LB)

Laurentian Bank of Canada, together with its subsidiaries, provides banking services to individuals, small and medium-sized enterprises, and independent advisors in Canada and the United States. Started in 1846, and run by CEO François Desjardins, the company provides employment to 3,771 people and with the company’s market capitalisation at CAD CA$2.07B, we can put it in the mid-cap category.

LB’s shares are currently floating at around -27% beneath its true value of $67.72, at a price of CA$49.70, based on its expected future cash flows. The mismatch signals a potential chance to invest in LB at a discounted price. Additionally, LB’s PE ratio is currently around 9.03x relative to its Banks peer level of, 13.35x suggesting that relative to other stocks in the industry, we can purchase LB’s shares for cheaper. LB is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities.

Continue research on Laurentian Bank of Canada here.

TSX:LB PE PEG Gauge Mar 12th 18
TSX:LB PE PEG Gauge Mar 12th 18

Or create your own list by filtering TSX companies based on fundamentals such as intrinsic discount, health score and future outlook using this free stock screener.

For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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