Discovering Canada's Undiscovered Gems for October 2024

In This Article:

As the Canadian market navigates a landscape influenced by shifting Fed expectations and potential productivity gains in the U.S., investors are closely watching how these dynamics impact small-cap stocks. In this environment, identifying promising opportunities requires a focus on companies that demonstrate resilience and adaptability, traits often found in Canada's undiscovered gems.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

TWC Enterprises

6.74%

10.99%

25.68%

★★★★★★

Reconnaissance Energy Africa

NA

15.28%

7.58%

★★★★★★

Santacruz Silver Mining

14.30%

49.04%

63.44%

★★★★★★

Taiga Building Products

NA

6.05%

10.50%

★★★★★★

Westshore Terminals Investment

NA

-2.67%

-9.77%

★★★★★☆

Grown Rogue International

24.92%

43.35%

67.95%

★★★★★☆

Mako Mining

22.90%

38.12%

54.79%

★★★★★☆

Queen's Road Capital Investment

7.20%

22.14%

22.20%

★★★★☆☆

Corby Spirit and Wine

75.89%

5.97%

-5.75%

★★★★☆☆

Genesis Land Development

53.32%

25.58%

47.05%

★★★★☆☆

Click here to see the full list of 51 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Extendicare

Simply Wall St Value Rating: ★★★★☆☆

Overview: Extendicare Inc., with a market cap of CA$768.73 million, operates through its subsidiaries to provide care and services for seniors in Canada.

Operations: Extendicare generates revenue primarily from Long-Term Care (CA$798.80 million) and Home Health Care (CA$525.16 million), with additional income from Managed Services (CA$64.32 million).

Extendicare's recent performance highlights its potential as a standout in the Canadian market. With earnings skyrocketing by 3957% over the past year, it outpaced the healthcare industry's growth of 11.4%. Despite a high net debt to equity ratio of 133.7%, Extendicare has made strides by reducing its debt from 405.7% to 261.6% in five years, indicating financial improvement. The company's price-to-earnings ratio at 13x is attractive compared to the Canadian market average of 15.4x, suggesting good value for investors looking into this sector with robust earnings coverage at an EBIT interest coverage of 5.9x.

TSX:EXE Earnings and Revenue Growth as at Oct 2024
TSX:EXE Earnings and Revenue Growth as at Oct 2024

Jaguar Mining

Simply Wall St Value Rating: ★★★★★★

Overview: Jaguar Mining Inc. is a junior gold mining company focused on the acquisition, exploration, development, and operation of gold mineral properties in Brazil, with a market capitalization of CA$379.09 million.