Canada Markets closed

2 Lesser-Known Canadian Stocks Trading Well Undervalued

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
value for money
value for money

Written by Daniel Da Costa at The Motley Fool Canada

After the last few weeks, with volatility consistently picking up, the number of Canadian stocks trading undervalued has been increasing. This is, of course, an excellent opportunity for investors to buy at a discount.

But while most investors will be focused on some of the most popular stocks that are trading cheap, the best investments could come from those lesser-known stocks that may get overlooked.

It can make sense to focus on some of the most popular and high-quality stocks. But that doesn’t mean the value these lesser-known stocks offer is any less appealing.

So, if you’re looking to get the most bang for your buck in this market environment, here are two Canadian stocks that are trading well undervalued.

A Canadian frozen seafood stock to buy undervalued

If you’re looking to buy a Canadian stock that’s undervalued, High Liner Foods (TSX:HLF) looks like an excellent stock to consider. The company sells frozen seafood under various brand names in grocery stores across North America. In addition, the company also sells to restaurants as well.

High Liner doesn’t just operate in the frozen seafood space. It’s a leader in the industry. The company has been in business for over 120 years and an industry leader for over half a century.

It offers over 30 species of seafood, has operations worldwide, a high-quality inventory management system, and the expertise of frozen seafood logistics. Plus, it has strong relationships with all the major North American distributors and grocery store chains, which is why it’s such an excellent company. But how cheap is the stock today?

After reporting strong earnings last quarter and revenue that grew 10% year over year, the undervalued Canadian stock has seen its share price improve. However, it still trades at a forward price-to-earnings ratio of just 8.4 times, which is quite cheap.

So, if you’re looking for a Canadian stock to buy undervalued, High Liner is one of the cheapest stocks you can buy on the TSX today.

A Canadian winemaker looking to break out

In addition to High Liner Foods, another stock that could prove to be a highly prudent investment today is Andrew Peller (TSX:ADW.A), a winemaker and alcoholic beverage company with a market cap of $350 million.

Andrew Peller’s stock has been declining for some time now. In addition to being 33% off its 52-week high and at the bottom of its 52-week range, the stock is also down by more than 50% from where it was in the middle of 2018. But why does that matter?

Up until 2018, the company had been growing its revenue and operations well. However, since 2018, it’s hit a wall, and its revenue has almost been perfectly flat since then. This slowdown in growth as well as other factors, like the pandemic, have led the stock to become completely cheap.

And especially if the company can find its footing and look for new ways of growth, buying the Canadian stock now while it trades undervalued could be an excellent investment.

It has a ton of products, has its own network of retail stores in Ontario, and its operations are completely domestic. This could be a huge advantage over the coming months, as the LCBO has already warned consumers ahead of Christmas and the New Year that there could be shortages of popular imported products due to supply chain issues.

So, with the Canadian stock trading undervalued today, I’d be putting it on your watchlist. And should its sales and margins begin to improve again, it could offer a ton of potential as its stock price recovers.

The post 2 Lesser-Known Canadian Stocks Trading Well Undervalued appeared first on The Motley Fool Canada.

Should you invest $1,000 in Well Health right now?

Before you consider Well Health, you may want to hear this.

Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now... and Well Health wasn't one of them.

The online investing service they've run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.

Learn More Today!

More reading

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.


Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting