In this article, we will look at the 10 Cheap Canadian Stocks to Buy According to Analysts.
Canadian Market Outlook 2025
In January, RBC Global Asset Management released its Market Outlook for Canada. Scott Lysakowski, the Managing Director & Senior Portfolio Manager, Head of Canadian Equities reflected on the Canadian market’s performance in 2024. He noted that the Canadian equity market, particularly the S&P/TSX Composite Index, experienced a notable year. The TSX achieved a total return of approximately 21%, which Lysakowski thinks is commendable, especially considering the broader economic context. However, this performance was somewhat overshadowed by the US market, where mega-cap stocks led the charge. The TSX’s gains, while substantial, were not as robust as those in the US, which Lysakowski attributed to the dominance of large-cap stocks in the latter part of the year.
Lysakowski noted that one interesting observation from 2024 was the brief increase in market breadth following significant events, such as elections. During these periods, mid-cap and small-cap stocks temporarily outperformed, suggesting a potential shift towards broader market participation. However, this trend was short-lived, and the year concluded with mega-cap stocks once again driving the majority of returns. The top ten stocks in the market contributed significantly to the overall performance, highlighting the persistent dominance of these large players.
Moreover, in analyzing the composition of returns for the TSX, Lysakowski suggests that it’s clear that the 21% total return consisted of a 3% dividend yield, with the remaining 18% split between earnings growth and valuation changes. Specifically, earnings growth accounted for about 9%, and multiple expansions contributed around 7%. In contrast, the US market, particularly mega-cap stocks, saw more pronounced earnings growth and multiple expansions, which explains their superior performance.
Looking ahead to 2025, Lysakowski noted that the outlook remains uncertain, partly due to macroeconomic factors such as the weakness in the Canadian dollar. This currency volatility is a significant concern for Canadian equities, as it impacts both investor sentiment and the macroeconomic outlook. Furthermore, the divergence in earnings growth between mega-cap and small-cap stocks suggests that until smaller companies demonstrate stronger earnings growth, the dominance of large-cap stocks will likely continue. This dynamic will be crucial to monitor in the coming year, as broader market participation could have a positive impact on Canadian equities.
With that let’s take a look at the 10 cheap Canadian stocks to buy according to analysts.
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Our Methodology
For this article, we used the Finviz stock screener, Yahoo Finance, Seeking Alpha, and CNN as our sources. Using the screener we aggregated a list of Canadian stocks that are trading below a Forward P/E of 15, with earnings growth expectations this year, and an upside potential of more than 10%. Next, we cross-checked the FWD P/E for each stock from Seeking Alpha and earnings growth from Yahoo Finance. Lastly, we ranked the stocks in ascending order of the average upside potential. Please note that the data was recorded on March 3rd, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Cheap Canadian Stocks to Buy According to Analysts
10. Royal Bank of Canada (NYSE:RY)
Forward P/E Ratio: 12.71
Earnings Growth This Year: 11.22%
Analyst Upside Potential: 14.29%
Royal Bank of Canada (NYSE:RY) is a large Canadian financial institution that offers a variety of services to individuals, businesses, and governments. It provides everyday banking services like checking accounts, loans, and investments to individuals and businesses in Canada, the Caribbean, and the US. It also helps wealthy individuals manage their money by offering investment advice and trust services. Additionally, the bank is engaged in Capital Markets and Insurance.
On February 26, Analyst Matthew Lee from Canaccord Genuity maintained a Buy rating on the stock with a price target of C$191. The analyst noted that the bank’s adjusted cash earnings per share exceeded both consensus and internal estimates, indicating robust earnings growth. This suggests that Royal Bank of Canada (NYSE:RY) is performing better than expected financially. Moreover, the revenue and expense ratio also outperformed expectations, demonstrating effective cost management and operational efficiency.
Royal Bank of Canada (NYSE:RY) reported strong financial performance in the first quarter of 2025. It achieved a record net income of $5.1 billion, marking a 43% increase from the previous year. Furthermore, its ROE was 16.8%, reflecting robust profitability. As a result of strong deposit growth in Personal Banking and loan growth in Commercial Banking, the net interest income rose by 26% year-over-year. Analysts expect around 14% upside during the next 12 months making it one of the cheap Canadian stocks to buy according to analysts.
9. The Bank of Nova Scotia (NYSE:BNS)
Forward P/E Ratio: 10.16
Earnings Growth This Year: 9.18%
Analyst Upside Potential: 17.71%
The Bank of Nova Scotia (NYSE:BNS), commonly known as Scotiabank, is a major Canadian bank that offers a wide range of financial services. It operates through various segments including Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets.
On February 25, Canaccord Genuity analyst Matthew Lee maintained a Buy rating on the stock with a price target of C$82. Lee noted that the bank exceeded market expectations for its adjusted cash earnings per share, indicating its ability to consistently generate solid earnings. In addition, revenue also grew significantly year-over-year, surpassing both the analyst’s and consensus estimates. During the fiscal first quarter of 2025, The Bank of Nova Scotia (NYSE:BNS) delivered positive results and strategic progress. The performance was backed by a strong Global Wealth Management segment, driven by favorable markets and strong trading revenues. Moreover, the Global Banking and Market also grew 33% year-over-year, particularly in capital markets. The management noted that they are on track to deliver 2025 earnings growth toward the higher end of their 5% to 7% range. It is one of the cheap Canadian stocks to buy according to analysts.
8. Kinross Gold Corporation (NYSE:KGC)
Forward P/E Ratio: 12.45
Earnings Growth This Year: 26.57%
Analyst Upside Potential: 21.64%
Kinross Gold Corporation (NYSE:KGC) is a Canadian company that engages in mining Gold. The company explores, extracts, and processes gold from various locations around the world. It extracts gold from various mines including, Paracatu in Brazil, and Fort Knox in Alaska, and is also developing new projects like Manh Choh in Alaska.
In Q4 2024, Kinross Gold Corporation (NYSE:KGC) achieved a record free cash flow of $1.3 billion and generated 2.13 million gold equivalent ounces during the year. It also achieved a net profitability of $948.8 million which helped it repay $800 million in debt.
On February 13, Lawson Winder from Bank of America Securities maintained a Buy rating on the stock with a price target of $12.75. The analyst likes the stable gold production of the company, which he believes increases the potential of the company to return more capital. Moreover, the company has been able to maintain stable production guidance of 2 million gold equivalent ounces from 2025 to 2027 which subsides the concerns of potential acquisitions. It is one of the cheap Canadian stocks to buy according to analysts.
7. Barrick Gold Corporation (NYSE:GOLD)
Forward P/E Ratio: 11.99
Earnings Growth This Year: 17.45%
Analyst Upside Potential: 23.61%
Barrick Gold Corporation (NYSE:GOLD) is a Canadian gold and copper mining company that operates several mines in Argentina, Chile, and Canada. It mainly produces gold and copper but also silver sometimes. On February 24, John Wolfson of RBC Capital maintained a Buy rating on the stock with a price target of $20.
In its fiscal fourth quarter of 2024, Barrick Gold Corporation (NYSE:GOLD) reported increasing its gold production by 15% subsequently. This increase was driven by Nevada operations, which played a crucial role in increased throughput and production. Management is expanding its operations. The company recently filed technical reports for two of its projects namely the Lumwana copper mine expansion and the Reko Diq project. These mines will add to the production of the company, the Lumwana copper mine expansion alone is estimated to cost around $2 billion, with the first production anticipated in 2028. Moreover, Barrick Gold Corporation (NYSE:GOLD) also added new gold and copper reserves, including 12.7 million ounces of gold and 13 million tons of copper. It is one of the cheap Canadian stocks to buy according to analysts.
Ariel Focus Fund stated the following regarding Barrick Gold Corporation (NYSE:GOLD) in its Q4 2024 investor letter:
“Lastly, gold mining company, Barrick Gold Corporation (NYSE:GOLD) fell following an investor day where management reduced five-year guidance for gold production and raised cost estimates. Meanwhile, a dispute with the African government of Mali and associated negative headlines created an overhang on shares. Despite ongoing uncertainty, management remains laser focused on upgrading its mining operations and broadly improving efficiencies amid today’s rising prices for precious metals. The company also continues to prioritize capital returns to shareholders via dividends and share repurchases. At current valuation levels, we believe the risk/reward is priced in.”
6. New Gold Inc. (NYSE:NGD)
Forward P/E Ratio: 7.7
Earnings Growth This Year: 76.72%
Analyst Upside Potential: 28.68%
New Gold Inc. (NYSE:NGD) is a Canadian company that primarily focuses on mining gold, silver, and copper. It operates two main mines in Canada including the Rainy River Mine, which produces gold, and the New Afton Mine, which produces gold and copper. On February 25, Michael Siperco from RBC Capital maintained a Buy rating on the stock, with a price target of $4.
The company released its fiscal fourth quarter 2024 earnings report on February 19. It produced 298,303 ounces of gold and 54 million pounds of copper in 2024. A notable achievement was that all-in-sustaining costs for gold were $1,239 per ounce, which was below the company’s guidance range of $1,240 to $1,340 per ounce. Management also noted that it benefited from the increased gold and copper prices resulting in a free cash flow generation of $85 million during 2024. Considering its cheap valuation and analyst upside potential for the next year, New Gold Inc. (NYSE:NGD) is one of the cheap Canadian stocks to buy according to analysts.
5. IAMGOLD Corporation (NYSE:IAG)
Forward P/E Ratio: 9.48
Earnings Growth This Year: 5.82%
Analyst Upside Potential: 39.04%
IAMGOLD Corporation (NYSE:IAG) is a Canadian company that focuses on exploring, developing, and operating gold mines in Canada and internationally. The company operates through several key projects including, Essakane Gold Mine in Burkina Faso, West Africa, Côté Gold Mine in Ontario, Canada, and Nelligan Gold Project in Quebec, Canada.
On February 18, BofA raised the firm’s price target on the stock from $6.65 to $7.75, while keeping a Buy rating on the stock. The company demonstrated strong growth in 2024. It finished 2024 with a total attributable gold production of 667,000 ounces, marking a 43% increase from the previous year. This growth was driven by the successful startup of Cote Gold and strong performances at Essakane and Westwood. Moreover, IAMGOLD Corporation (NYSE:IAG) generated approximately $781 million in adjusted EBITDA for the year and also strengthened its financial position by completing a repurchase agreement to regain a 70% interest in Cote Gold and fulfilling half of a legacy gold prepayment arrangement. It is one of the cheap Canadian stocks to buy according to analysts.
4. Veren Inc. (NYSE:VRN)
Forward P/E Ratio: 5.33
Earnings Growth This Year: 8.03%
Analyst Upside Potential: 39.90%
Veren Inc. (NYSE:VRN) is another Canadian company that primarily focuses on producing oil. The company is involved in finding, developing, and managing oil and natural gas properties. It does so through partnerships and by owning subsidiaries.
On February 28, Jeremy Mccrea, an analyst from BMO Capital, maintained the Buy rating on Veren with a price target of C$11. The analyst noted that the company has achieved impressive results with its SPE completion design in the Karr area of Alberta Montney. Moreover, the well rates have significantly exceeded expectations, indicating a promising future for production and financial performance. In addition, activities in the Kaybob Duvernay region have surpassed expectations as well and Multi-well pads have delivered production rates above the area’s typical performance, contributing to a positive outlook for cash flow and production. Veren Inc. (NYSE:VRN) has maintained its 2025 guidance, but the company has shown its ability to achieve higher-than-expected cash flow and production rates.
During the fiscal fourth quarter of 2024, Veren Inc. (NYSE:VRN) achieved an average daily production of 191,000 barrels of oil equivalent. The fourth quarter saw a production level of 189,000 BOE per day, with the Montney and Duvernay assets in Alberta accounting for nearly 80% of Q4 production. It is one of the cheap Canadian stocks to buy according to analysts.
3. B2Gold Corp. (NYSE:BTG)
Forward P/E Ratio: 6.65
Earnings Growth This Year: 150.00%
Analyst Upside Potential: 41.08%
B2Gold Corp. (NYSE:BTG) is a Canadian company that specializes in gold mining. It has operations in several countries including the Fekola Mine in Mali, the Otjikoto Mine in Namibia, and the Masbate Mine in the Philippines. The company is also involved in developing new projects and exploring for gold in countries like Colombia, Finland, and Canada. In Canada, it is working on the Goose Project in Nunavut and has interests in the Back River Gold District.
On February 20, analyst Brian Quast from BMO Capital maintained a Buy rating on the stock while keeping the price target at C$7.00. The analyst noted that the company’s gold production levels were in line with expectations, reaching the lower end of their revised annual guidance for 2024. This stability suggests a reliable production base moving forward. In addition, the cash operating costs and all-in-sustaining costs were within the company’s guidance ranges as well, indicating that the company is managing its expenses effectively.
During the fiscal fourth quarter of 2024, B2Gold Corp. (NYSE:BTG) produced 186,001 ounces of gold. Management noted that strong performance from the Masbate and Otjikoto mines aided in offsetting the lower output from Fekola. It is one of the cheap Canadian stocks to buy according to analysts.
2. Methanex Corporation (NASDAQ:MEOH)
Forward P/E Ratio: 9.45
Earnings Growth This Year: 25.26%
Analyst Upside Potential: 43.05%
Methanex Corporation (NASDAQ:MEOH) produces and supplies methanol around the world, including North America, Asia Pacific, Europe, and South America. It operates production facilities in several countries, including Canada, Chile, Egypt, New Zealand, Trinidad and Tobago, and the United States. Methanex Corporation (NASDAQ:MEOH) is one of the largest producers and suppliers of methanol globally, and its operations are supported by a significant logistics network.
On February 18, the company received a Buy rating on the stock from analyst Ben Isaacson of Scotiabank, with a price target of $66. During the fiscal fourth quarter of 2024, the company experienced higher adjusted EBITDA compared to Q3 2024, driven by higher average realized prices and increased produced sales. It generated an adjusted EBITDA of $224 million. Management noted that the global methanol demand increased by approximately 3 million tons in 2024 compared to 2023 and it expects similar demand growth in 2025. In addition, Methanex Corporation (NASDAQ:MEOH) is working on acquiring OCI and is managing its finances to pay down debt and potentially reward shareholders. Lastly, the cheap valuation makes it one of the cheap Canadian stocks to buy according to analysts.
Polaris Global Equity Strategy stated the following regarding Methanex Corporation (NASDAQ:MEOH) in its Q3 2024 investor letter:
“Barbell returns defined the materials sector, with gains from Linde PLC, Yara International, Smurfit Kappa (now Smurfit Westrock), Antofagasta PLC and Mondi PLC offset by two Canadian companies, Methanex Corporation (NASDAQ:MEOH) and Lundin Mining. Methanex shares fell after the company agreed to acquire the methanol business of OCI Global for a little more than $2 billion. Methanex is slated to get OCI’s interest in two methanol facilities in Texas as well as a low-carbon methanol production business and idled facility in the Netherlands. Following the news, Barclays downgraded the stock, citing concerns about operating reliability, increased leverage and investor rotation.”
1. Hudbay Minerals Inc. (NYSE:HBM)
Forward P/E Ratio: 11.2
Earnings Growth This Year: 32.29%
Analyst Upside Potential: 47.97%
Hudbay Minerals Inc. (NYSE:HBM) is a Canadian company that focuses on mining copper. It operates in several countries, including Canada, Peru, and the United States. It operates three main mines including, Constancia Mine, Snow Lake Operations, and Copper Mountain Mine. In addition, the company is developing new copper mines and projects including, Copper World in Arizona, Mason Project in Nevada, and Llaguen Project in Peru.
In 2024, Hudbay Minerals Inc. (NYSE:HBM) achieved a record annual revenue of $2.021 billion and adjusted EBITDA of $822.5 million. This was driven by exceptional production levels and strong cost management. The gold production exceeded expectations, while copper and silver outputs increased by 5% and 11%, respectively, compared to 2023. Management noted that the operational efficiencies in Peru and Manitoba, along with advancements at the Copper Mountain mine, contributed significantly to these results. Looking ahead the company anticipates stable copper production with competitive margins. It plans to invest in growth projects, including mill throughput enhancements in British Columbia and Peru, and further development of the Copper World project in Arizona. It is the best cheap Canadian stock to buy according to analysts.
L1 Long Short Fund stated the following regarding Hudbay Minerals Inc. (NYSE:HBM) in its Q2 2024 investor letter:
“Hudbay Minerals Inc. (NYSE:HBM) (Long +31%) shares rallied over the quarter driven by rising copper and gold prices, as well as strong production results. The company’s first quarter results showed higher gold production and robust operating performance at both its major assets, which exceeded consensus expectations. In addition, the company announced a ~US$400m equity raise to support balance sheet de-leveraging and fund its key growth projects. Hudbay is a mid-tier mining company primarily producing copper, alongside gold and zinc, with its key assets located in Canada and Peru. We are attracted to Hudbay due to our positive medium-term outlook for copper and the company’s strong near-term free cash flow generation. This cash generation potential will allow the company to de-lever and recycle capital back into its highly prospective exploration program and major growth projects, most notably its Copper World project in Arizona.”
While we acknowledge the potential of Hudbay Minerals Inc. (NYSE:HBM) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HBM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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