By Karen Thomas, MSc, CFA at The Motley Fool Canada
Finding undervalued stocks is the best way to maximize stock returns. When the crowd is undervaluing a stock, we have the opportunity to buy at these undervalued levels, creating great value for our investment portfolio.
With the S&P/TSX having rallied so high over the last few years, it has become increasingly difficult to find undervalued stocks. But that doesn’t mean it’s impossible. As they say, there’s always a stock that’s going through a difficult time, an industry that’s going through a difficult time, or that’s feeling the brunt of negative investor sentiment.
Let’s take a look at three undervalued stocks to buy.
Agnico-Eagle Mines
Agnico-Eagle Mines Ltd. (TSX:AEM) is a major Canadian gold producer, with gold mines strategically located in safe, pro-mining jurisdictions. This includes places like Canada, Europe, and certain parts of Latin America.
It’s no secret that gold prices have soared in the last few years. And it’s no surprise either, given the geopolitical backdrop and the uncertain economic environment during that time period. In fact, the price of gold has rallied approximately 144% in the last five years. Agnico-Eagle Mines stock has also rallied as a result of this, as well as its continued solid operational performance. In the company’s first quarter of 2026, Agnico-Eagle reported record net income, with adjusted net income coming in at $1.7 billion and earnings per share (EPS) of $3.41. This represented a 120% increase over the same period last year.
Cineplex
Cineplex Inc. (TSX:CGX) has been struggling to recapture its glory days ever since the pandemic hit. This, coupled with the growth of streaming, has placed this undervalued stock in a difficult position over the last few years.
But today, I think that Cineplex stock is looking good. It’s been a long road to recovery, but I think that patient investors will be rewarded. In Cineplex’s first quarter 2026 results, the company showed undeniable strength, as attendance increased 17.3% versus last year, to 9.8 million. Furthermore, May box office revenue of $60.5 million was the highest since 2019, and 9.4% higher than last year. Year-to-date box office revenue is currently $120.5 million, which is 12.9% higher than the same period last year.
Cineplex stock is continuing to see this strong momentum in June. Looking ahead, analyst earnings estimates are calling for EPS of $0.32 for this year, and $0.62 in 2027. This represents strong growth from losses in the prior two years. The 2027 EPS estimates reflect an almost doubling of earnings for Cineplex stock, which trades at a mere 19 times 2027 earnings.
Well Health Technologies
Finally, Well Health Technologies Ltd. (TSX:WELL) is another undervalued stock to buy. Well Health stock is an omnichannel digital healthcare company, with a network that includes primary, specialized, and diagnostic healthcare services and facilities.
The fact is that the Canadian healthcare system is far behind the technological curve. This means inefficiencies, increased burden on healthcare providers, and ultimately, a lower standard of care than what could potentially be achieved. Well Health has been on a mission to change this. And it has been successfully digitizing Canadian healthcare, which has been benefitting doctors and patients alike. In fact, Well Health stock is now the operating system for the modernization of the Canadian healthcare ecosystem.
In its latest quarter, this undervalued stock to buy saw its revenue increase 25%, its earnings before taxes, depreciation, and amortization (EBITDA) increase 56%, and its adjusted net income double.
The bottom line
The three undervalued stocks to buy that I discussed in this article are all benefitting from positive or improving fundamentals in their respective businesses. Furthermore, they are all leaders in their industries, with solid operational performance and strong outlooks.
The post 3 Undervalued Stocks to Buy Before the Crowd Catches On appeared first on The Motley Fool Canada.
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Fool contributor Karen Thomas has positions in Agnico Eagle Mines, Cineplex, and Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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