In this article, we will look at the 10 Most Oversold Canadian Stocks to Buy According to Analysts.
Canada’s Retaliation to US Tariffs
On March 12, CNBC reported that after the European Union, Canada also announced that it would impose retaliatory tariffs on US goods. Canada has imposed a 25% tariff, mainly targeting steel and aluminum, but will also hit some of the other US exports, including computers, sports equipment, and cast iron products. CNBC’s Megan Cassella while analyzing this move mentioned that the economic impact of these tariffs can be estimated beforehand as this is very similar to President Trump’s first term when he imposed similar tariffs. She noted that President Trump had imposed similar tariffs in 2018, but later had to carve out many countries because of the economic impact. Although there was some modest help for the local aluminum producers back in 2018, however, all steel and aluminum users were impacted and as a result the overall net economic impact was negative.
While quoting research by the Federal Reserve, Cassella noted that tariffs boosted employment in manufacturing by around 0.3%. However, the rising input cost dragged down the same sector employment by around 1.1% and retaliation pulled it down another 0.7%. Therefore the net economic impact at the end was recorded to be -1.4% to the sector, which accounts for a direct loss of around 75,000 manufacturing jobs. Moreover, economists at the Peterson Institute estimated that there was a cost of about $900,000 for every job saved or created in the steel industry. Cassella further elaborated that as of yet the goal of these tariffs remains unclear, due to which the consumers and the manufacturers in the industry are confused as well.
READ ALSO: Top 12 Extreme Value Stocks to Invest In Right Now and 10 Best Growth Stocks to Invest in for the Next 10 Years.
On the other hand, these tariffs add to the economic challenges Canada is facing which include slower population growth, federal policy ambiguity, and inflation. According to Deloitte’s January 2025 Canadian economy forecast, the economy is anticipated to remain positive with 2% GDP growth expected during the year. While the outlook by Deloitte has not factored in the economic impact of US tariffs, it suggests that the government would have to lean in to support the business and local production to fight off the impact of tariffs and enhance productivity.
With that, let’s take a look at the 10 most oversold Canadian stocks to buy according to analysts.
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Our Methodology
To compile the list of the 10 most oversold Canadian stocks to buy according to analysts, we used the Finviz stock screener and CNN. Using the screener we aggregated a list of Canadian stocks that have fallen by more than 25% over the past 6 months but analysts see more than 25% upside. We cross-checked the upside potential from CNN and ranked the stocks based on this metric, in ascending order. Please note that the data was recorded on March 13, 2025. Additionally, we have included the hedge fund sentiment around each stock.
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 Most Oversold Canadian Stocks to Buy According to Analysts
10. Canadian Solar Inc. (NASDAQ:CSIQ)
6-Month Performance: -33.48%
Number of Hedge Fund Holders: 13
Analyst Upside Potential: 39.78%
Canadian Solar Inc. (NASDAQ:CSIQ) is a leading international renewable energy company based in Canada. It operates through two main segments including CSI Solar and Recurrent Energy. While the CSI Solar segment focuses on the manufacturing and sales of solar photovoltaic modules and battery energy storage solutions. The Recurrent Energy segment deals with the development, financing, execution, and maintenance of utility-scale solar power and battery energy storage projects.
On March 6, Canadian Solar Inc. (NASDAQ:CSIQ) announced that its majority-owned subsidiary e-STORAGE has secured a significant battery supply and long-term service agreements for two major battery energy storage projects in the United States. During the fiscal third quarter of 2024, the company shipped 8.4 GW of solar modules and 1.8 GWh of battery and energy storage solutions. This resulted in a revenue of $1.5 billion with margins at 16.4%, both surpassing expectations.
Moreover, the management also announced its partnership with SolarCycle to offer comprehensive recycling services, demonstrating leadership in sustainability. The company is also investing heavily in US manufacturing, including a solar module facility in Texas and a solar cell facility in Indiana. A new battery cell module and packaging facility is planned for Kentucky, with an initial investment of over $300 million. It is one of the most oversold Canadian stocks to buy according to analysts.
9. Ero Copper Corp. (NYSE:ERO)
6-Month Performance: -41.24%
Number of Hedge Fund Holders: 15
Analyst Upside Potential: 39.92%
Ero Copper Corp. (NYSE:ERO) is a Canadian mining company that focuses on the exploration, development, and mining of mineral properties primarily in Brazil. The company operates several mines in Brazil, including the Caraiba Operations in Bahia State, the Xavantina Operations in Mato Grosso State, and the Tucuma Operation in Para State.
On March 7, Analyst Guilherme Rosito from Bank of America Securities maintained a Buy rating on the stock with a C$26.00 price target. The analyst noted that despite missing EBITDA expectations in recent quarterly results, he sees significant growth potential, particularly with the ramp-up of operations at the Tucuma site. This is expected to improve production levels in the coming quarters. Rosito is also optimistic about Ero Copper Corp.’s (NYSE:ERO) ability to leverage the favorable copper market outlook.
During the fiscal fourth quarter of 2024, the company delivered record copper production which resulted in a strong financial performance. Its full-year copper production reached 40,600 tonnes in concentrate. Moreover, as a result of higher metal prices and stronger operating margins, the year led to increased cash flow from operations of $60.8 million for the quarter and $145.4 million for the year. It is one of the most oversold Canadian stocks to buy according to analysts.
8. TFI International Inc. (NYSE:TFII)
6-Month Performance: -42.64%
Number of Hedge Fund Holders: 23
Analyst Upside Potential: 49.50%
TFI International Inc. (NYSE:TFII) is a leading transportation and logistics company with operations in the United States, Canada, and Mexico. It offers a range of services through its segments which include Packaging and Courier, Less-Than-Truckload, Truckload, and Logistics. The company is known for its strategic acquisitions and extensive network of subsidiaries, which help it maintain a strong presence in the logistics industry.
On March 3, Susquehanna analyst Bascome Majors maintained a Buy rating on the stock with a price target of $135.00. During the fiscal fourth quarter of 2024, the company highlighted that it is navigating challenging conditions in the transportation and logistics industry, marked by a slump in freight volumes. Despite these challenges, the company has maintained strong financial performance, particularly in generating free cash flow. TFI International Inc. (NYSE:TFII) grew its revenue by 9% year-over-year to reach $1.8 billion, driven by the acquisition of Daseke. Notably, its Less Than Truckload segment grew by 10% during the same time to reach $737 million. TFI International Inc. (NYSE:TFII) is one of the most oversold Canadian stocks to buy according to analysts.
7. BRP Inc. (NASDAQ:DOOO)
6-Month Performance: -39.01%
Number of Hedge Fund Holders: 8
Analyst Upside Potential: 53.64%
BRP Inc. (NASDAQ:DOOO) is a Canadian company that makes and sells vehicles and equipment for recreational activities. It mainly focuses on power sports including vehicles like snowmobiles, all-terrain vehicles, personal watercraft, and motorcycles. The company is also focused on Marine vehicles such as boats, pontoons, and engines for boats.
On January 7, RBC Capital analyst Sabahat Khan maintained a Buy rating on the stock with a price target of C$99.00. During the fiscal third quarter of 2025, BRP Inc. (NASDAQ:DOOO) reported revenues of approximately $2 billion with normalized EBITDA of $264 million. Both of these indicators surpassed expectations. The company faced a challenging market with softer demand for power sports products, partly due to high promotional activity by competitors and a high level of non-current units in the market. Despite this, BRP Inc. (NASDAQ:DOOO) maintained its focus on reducing network inventory and made significant progress. The company has decided to sell its Marine businesses to focus on its core Powersports activities, aiming to capitalize on growth opportunities and position the company for long-term success. It is one of the most oversold Canadian stocks to buy according to analysts.
6. TELUS International (Cda) Inc. (NYSE:TIXT)
6-Month Performance: -26.85%
Number of Hedge Fund Holders: 12
Analyst Upside Potential: 68.54%
TELUS International (Cda) Inc. (NYSE:TIXT) is a leading digital customer experience (CX) innovator. The company specializes in designing, building, and delivering next-generation digital solutions to enhance customer experiences for global and disruptive brands.
During fiscal 2024, the company added 55 net new clients across diverse industries, including 13 in the fourth quarter. Notably, it secured customer experience services for two large American retailers to be delivered in India and South Africa. As a result of new clients, the company grew its revenue by 5% year-over-year to reach $691 million. Management noted that it saw momentum in AI Data Solutions, including new clients in AI research and autonomous transportation. They also reported progress in Digital Solutions, with improved client re-engagement and utilization of talent. Looking ahead the company expects around 2% organic growth in 2025. It is one of the most oversold Canadian stocks to buy according to analysts.
5. Precision Drilling Corporation (NYSE:PDS)
6-Month Performance: -31.66%
Number of Hedge Fund Holders: 15
Analyst Upside Potential: 86.86%
Precision Drilling Corporation (NYSE:PDS) is a leading Canadian company offering contract drilling and completion and production services. Its operations include drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale, and repair of drilling equipment. On February 14, CIBC analyst Jamie Kubik maintained a Buy rating on the stock with a price target of C$115.00.
In the fiscal fourth quarter of 2024, the company showed resilience despite a challenging environment. Precision Drilling Corporation (NYSE:PDS) delivered revenue of $1.9 billion, remaining essentially flat year-over-year. More notably, its Canadian Super Series rigs were near full utilization rate with a 12% increased drilling activity in Canada, around 37% increased activity internationally, and a 26% increase in good activity. Looking ahead, the company has planned a capital expenditure of $225 million, with $175 million for sustaining and infrastructure and $50 million for upgrades and expansion. Moreover, it also aims to reduce debt by at least $100 million, with a long-term goal of below 1x leverage. It is one of the most oversold Canadian stocks to buy according to analysts.
4. SNDL Inc. (NASDAQ:SNDL)
6-Month Performance: -28.50%
Number of Hedge Fund Holders: 12
Analyst Upside Potential: 115.73%
SNDL Inc. (NASDAQ:SNDL) is a prominent Canadian company operating in both the liquor and cannabis sectors. Under the Liquor segment, it operates a network of liquor stores under banners like Ace Liquor, Wine and Beyond, and Liquor Depot. These stores sell a variety of wines, beers, and spirits. Moreover, the company also operates retail cannabis stores under brands such as Spirit Leaf, Value Buds, and Firesale Cannabis.
In the fiscal third quarter of 2024, SNDL Inc. (NASDAQ:SNDL) Cannabis segment achieved its 11th consecutive quarter of revenue growth, posting an 8% year-over-year increase. On the other hand, Liquor retail revenue declined by 4.8% compared to the prior year due to weaker demand but showed quarter-over-quarter growth of $4 million. Moreover, the company achieved a record-breaking gross margin of 26.6%, driven by improvements in both Liquor retail and Cannabis operations. As per the management, the company remains on track to achieve positive free cash flow for the full year of 2024. It is one of the most oversold Canadian stocks to buy according to analysts.
3. Seabridge Gold Inc. (NYSE:SA)
6-Month Performance: -34.53%
Number of Hedge Fund Holders: 20
Analyst Upside Potential: 186.32%
Seabridge Gold Inc. (NYSE:SA) is a Canadian company focused on acquiring, exploring, and advancing mineral properties, primarily gold resources, in North America. The company holds a 100% interest in several significant North American gold projects including the KSM Project, Iskut Project, Courageous Lake Project, and more.
In Q3 2024, the KSM project was declared “Substantially Started” by British Columbia, ensuring that its Environmental Assessment Certificate remains valid indefinitely. This status is crucial for maintaining regulatory compliance and stability for future development. Moreover, the company also secured a 20-year extension for its Mitchell Treaty Tunnels License of Occupation, reinforcing its long-term development rights.
Its construction activities at KSM are progressing as planned, supported by a cash position of approximately $150 million. Seabridge Gold Inc. (NYSE:SA) has updated the resources at KSM’s Iron Cap and Kerr deposits, adding 5.9 million ounces of gold, 3.3 billion pounds of copper, and 55.4 million ounces of silver. These updates enhance the project’s long-term potential and the company’s overall prospects. Analysts expect more than 186% upside for the company, making it one of the most oversold Canadian stocks to buy according to analysts.
2. Tilray Brands, Inc. (NASDAQ:TLRY)
6-Month Performance: -66.02%
Number of Hedge Fund Holders: 19
Analyst Upside Potential: 187.56%
Tilray Brands, Inc. (NASDAQ:TLRY) is a global lifestyle and consumer packaged goods company. It operates through various segments including Cannabis Operations, Distribution Business, Beverage Alcohol Business, and Wellness Business. The company operates in over 20 countries and supports more than 40 brands across its platforms.
The company has demonstrated significant growth and diversification across its business segments, achieving notable milestones in revenue, market share, and operational efficiency. In the fiscal second quarter of 2025, Tilray Brands, Inc. (NASDAQ:TLRY) reported net revenue of $211 million, reflecting a 9% year-over-year increase. Moreover, gross profit grew by 29%, and gross margin improved by 500 basis points compared to the prior quarter.
The company remains the largest cannabis company in Canada by revenue and regained the top position in the flower category, which constitutes around 35% of cannabis retail sales. It also leads the THC beverage category with a 45% market share. Analysts see more than 187% upside for the company, making it one of the most oversold Canadian stocks to buy according to analysts.
1. Bitfarms Ltd. (NASDAQ:BITF)
6-Month Performance: -46.57%
Number of Hedge Fund Holders: 15
Analyst Upside Potential: 266.97%
Bitfarms Ltd. (NASDAQ:BITF) is an international, vertically integrated company specializing in Bitcoin mining. The company operates server farms with computers designed to validate transactions on the Bitcoin blockchain. These operations are conducted 24/7, producing computational power that is sold to mining pools under the Full Pay Per Share (FPPS) model.
In its February 2025 update, the company reported increasing its operational hash rate to 16.1 EH/s, marking a 6% month-over-month increase. The average operational hash rate also rose by 20% to 13.4 EH/s. Moreover, the company is on track to complete two significant transactions in Q1 2025 including the acquisition of Stronghold Digital Mining and the sale of the Yguazu site. These transactions are part of Bitfarms Ltd.’s (NASDAQ:BITF) strategy to transform into a North American-focused company with a strong presence in both Bitcoin mining and HPC/AI. It aims to leverage lower-cost energy and high-quality assets. It is the most oversold Canadian stock to buy according to analysts.
While we acknowledge the potential of Bitfarms Ltd. (NASDAQ:BITF) 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 BITF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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