Earlier on February 21, Brianne Gardner, senior wealth manager at Velocity Investment Partners, Raymond James, appeared on BNN Bloomberg and shared her outlook on Canadian & US large caps. Gardner began by addressing the day’s market volatility and noted that a Supreme Court ruling struck down emergency powers used to impose tariffs, which she viewed as a net positive for businesses and consumers. Gardner observed a shift in leadership away from broad momentum toward earning quality in sectors like energy, infrastructure, and industrials. She particularly mentioned that while AI spending remains a major theme, investors are now demanding proof that capital expenditure is translating into sustainable returns.
Gardner described her investment strategy as being constructive yet patient, maintaining dry powder or cash on the sidelines. She favors the materials and energy sectors, the latter of which has benefited from geopolitical risks. She noted that her team has been taking profits on technology names and is looking for international diversification. She emphasized the importance of owning high-quality companies with pricing power and strong balance sheets.
That being said, we’re here with a list of the 10 best Canadian value stocks to buy.
Our Methodology
We used screeners to identify Canadian stocks that are trading below a forward P/E of 15, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on March 3.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Canadian Value Stocks to Buy
10. Endeavour Silver Corp. (NYSE:EXK)
Endeavour Silver Corp. (NYSE:EXK) is one of the best Canadian value stocks to buy. On February 27, Endeavour Silver Corp. reported financial results for the full-year 2025. The company achieved record annual revenue of $467.5 million, which is a 115% increase over 2024, driven by a 48% surge in silver equivalent production to 11 million ounces. This was supported by the commissioning of the Terronera mine, the acquisition of the Kolpa mine, and higher realized metal prices.
Strategically, Endeavour Silver Corp. highlighted the commencement of commercial production at Terronera in October 2025 and the finalization of a definitive agreement to sell the Bolañitos mine. Despite operational successes, the company reported a net loss of $119.1 million for the year, largely attributed to $126.2 million in derivative contract losses and increased finance costs following the start of commercial operations at Terronera.
In Q4, consolidated cash costs rose to $19.05 per silver ounce, and all-in sustaining costs reached $41.19 per ounce, reflecting the initial high costs of ramping up Terronera and the impact of a stronger Mexican peso. While throughput increased across the portfolio, the company noted that Terronera’s initial efficiency was affected by electrical disruptions, which are currently being addressed through new operational initiatives. Additionally, Endeavour Silver Corp. (NYSE:EXK) briefly paused operations at Terronera in February 2026 due to local security concerns and blockades, though normal activities resumed shortly thereafter.
Endeavour Silver Corp. (NYSE:EXK) is a silver mining company that acquires, explores, develops, extracts, processes, refines, and reclaims mineral properties in Mexico, Chile, Peru, and the US. It explores for gold & silver deposits, and precious metals, as well as polymetals.
9. Hudbay Minerals Inc. (NYSE:HBM)
Hudbay Minerals Inc. (NYSE:HBM) is one of the best Canadian value stocks to buy. On March 2, Hudbay Minerals reached a deal to buy Arizona Sonoran Copper Company/ASCU in an all-share transaction worth roughly C$9.35 per share. ASCU shareholders will receive 0.242 Hudbay shares for each share they own, representing a 30% premium. This merger gives Hudbay full control of the Cactus project, which, when combined with its Copper World asset, creates the third-largest copper district in North America and establishes a major hub for US copper production.
The acquisition is designed to increase Hudbay’s production capacity. The company expects its annual copper output to grow from 125,000 tonnes to over 250,000 tonnes by 2030, with the potential to reach 350,000 tonnes. Hudbay Minerals Inc. (NYSE:HBM) also anticipates between $5 million and $10 million in annual corporate savings and plans to use resources from Copper World, such as sulfuric acid, to improve operations at the Cactus site.
For ASCU shareholders, the deal provides an immediate payout premium while reducing the risks and costs of developing a large mining project alone. The boards of both companies have approved the agreement, and the deal is expected to close in Q2 2026. ASCU investors will vote on the proposal in May, and the transaction still requires standard regulatory and court approvals.
Hudbay Minerals Inc. (NYSE:HBM) is a diversified mining company that explores, develops, operates, and optimizes properties in North and South America.
8. Gildan Activewear Inc. (NYSE:GIL)
Gildan Activewear Inc. (NYSE:GIL) is one of the best Canadian value stocks to buy. On February 26, Gildan Activewear reported record annual revenue of ~$3.6 billion for 2025, supported by a strong adjusted operating margin of 21.5%. Full-year adjusted diluted EPS rose 17% to $3.51. The company’s Q4 sales from continuing operations jumped 31.3% to $1.078 billion. This was fueled by a 10.3% increase in Activewear sales and a massive 171% surge in Innerwear sales following the acquisition of Hanes brands.
The integration of Hanes brands is a central part of Gildan’s strategy and is reportedly progressing ahead of schedule. The company increased its expected cost synergies to $250 million over the next 3 years through manufacturing footprint optimization and IT standardization. For 2026, Gildan Activewear forecasts revenue between $6 billion and $6.2 billion and adjusted diluted EPS in the range of $4.20 to $4.40. The company also plans to expand its manufacturing complex in Bangladesh to support growth through 2028.
Despite the positive outlook, the company faces some short-term hurdles, including a proactive inventory destocking plan that will likely impact sales in H1 2026. This move is intended to manage capacity as Gildan Activewear Inc. (NYSE:GIL) closes two Hanes facilities.
Gildan Activewear Inc. (NYSE:GIL) manufactures and sells various apparel products. The company provides various activewear products as well as hosiery products.
7. BCE Inc. (NYSE:BCE)
BCE Inc. (NYSE:BCE) is one of the best Canadian value stocks to buy. On February 5, BCE Inc. reported its 2025 financial results, where the company saw a 10% increase in free cash flow to $3.2 billion, supported by a 0.7% rise in adjusted EBITDA and a reduction in capital expenditures. A major highlight was the growth of AI-powered solutions, which surged 60% to reach $700 million in revenue.
Additionally, the acquisition of Ziply Fiber supported the company’s fiber strategy, while Bell Media saw its digital revenues rise to represent 44% of its total media income. However, the company’s adjusted EPS fell by 7.9% for the year due to higher interest expenses and increased depreciation from network investments. Wireless service revenue also saw a slight dip of 0.2% in Q4 as the market shifted toward customers bringing their own devices, leading to a 20% drop in contracted device sales.
For 2026, BCE Inc. (NYSE:BCE) provided a cautious outlook. While revenue is projected to grow between 1% and 5%, adjusted EPS is expected to decline further by 5% to 11%. The company plans to focus on its fiber rollout and the continued integration of Ziply Fiber, with an expansion expected in the second half of the year.
BCE Inc. (NYSE:BCE) is a communications company that provides wireless, wireline, internet, streaming services, and TV services to residential, business, and wholesale customers in Canada. It operates in two segments: Bell Communication & Technology Services and Bell Media.
6. Pan American Silver Corp. (NYSE:PAAS)
Pan American Silver Corp. (NYSE:PAAS) is one of the best Canadian value stocks to buy. On February 18, Pan American Silver reported financial results for 2025, fueled by strong operational performance and high metal prices. The company achieved net earnings of $980 million for the year, with Q4 earnings alone reaching $452 million. This profitability translated into an annual free cash flow of $1.2 billion, allowing the company to end the year with ~$1.3 billion in cash and short-term investments.
The company’s silver production of 22.8 million ounces exceeded its original guidance, with the Juanicipio mine serving as a major contributor following its acquisition. Silver all-in sustaining costs for the year sat at $13.88 per ounce, coming in below reduced targets. For 2026, Pan American Silver Corp. (NYSE:PAAS) provided a production forecast of 25 million to 27 million ounces of silver and 700,000 to 750,000 ounces of gold.
The company’s project updates highlighted a revised, phased development plan for the La Colorada Skarn project in Mexico. The new approach focuses on higher-grade, lower-tonnage mining to reduce initial capital intensity, with a fresh technical report and preliminary economic assessment expected in Q2 2026. Meanwhile, the Escobal mine in Guatemala remains suspended as the local government continues its consultation process, with no set timeline for a restart.
Pan American Silver Corp. (NYSE:PAAS) explores, develops mines, extracts, processes, refines, and reclaims mines in Chile, Peru, Brazil, Mexico, Canada, Argentina, Bolivia, and Guatemala.
5. Sun Life Financial Inc. (NYSE:SLF)
Sun Life Financial Inc. (NYSE:SLF) is one of the best Canadian value stocks to buy. On February 12, Sun Life Financial reported a strong finish to 2025, with Q4 underlying net income rising 13% to $1.1 billion. This drove underlying EPS up 17% to $1.96, supported by a robust underlying return on equity of 19.1%. Growth was visible across all major business lines, particularly in individual protection sales, which surged 38%, and group health sales, which grew by 42%.
The company’s US stop-loss business recorded 58% sales growth. Management implemented an average price increase of 17% on renewal business to hit target margins, navigating a hard market where some competitors have exited. Additionally, the asset management and wealth segment earned $534 million, up 10%, as the company continues to consolidate its private asset affiliates under SLC Management.
Despite the growth in underlying earnings, net income was 34% lower at $722 million due to market volatility, including changes in risk-free rates and credit spreads. The company also noted net outflows in its MFS asset management business and a $110 million loss in the corporate segment caused by higher financing costs. Sun Life Financial Inc. (NYSE:SLF) now plans to focus on organic growth and the final steps of acquiring its private asset affiliates, with the potential to resume share buybacks later in 2026.
Sun Life Financial Inc. (NYSE:SLF) is a financial services company that provides asset management, wealth, insurance, and health solutions to individual and institutional customers internationally.
4. Canadian Imperial Bank of Commerce (NYSE:CM)
Canadian Imperial Bank of Commerce (NYSE:CM) is one of the best Canadian value stocks to buy. On February 26, Canadian Imperial Bank of Commerce reported FQ1 2026 financial results, posting adjusted net income of CAD 2.7 billion, which is a 23% increase year-over-year. This was driven by a 15% rise in total revenue to CAD 8.4 billion, supported by significant margin expansion and an 18% jump in non-interest income.
Growth was broad-based across all business segments, with the Capital Markets division seeing a 42% rise in net income and the Canadian Personal & Business Banking unit benefiting from a 34-basis-point year-over-year improvement in net interest margins. Canadian Imperial Bank of Commerce (NYSE:CM) attributed the margin strength to a favorable business mix and higher deposit levels, though it cautioned that a slight seasonal pullback is possible in Q2.
On the credit front, performance remained stable and within expectations despite some localized pressure. Provisions for credit losses totaled CAD 568 million, and while the gross impaired loan ratio ticked up slightly to 64 basis points, new impairments in the business sector actually declined. Management noted some modest increases in credit card delinquencies and write-offs due to the current economic climate, but remains confident in the bank’s full-year guidance, highlighting that the mortgage portfolio remains healthy with strong loan-to-value ratios.
Canadian Imperial Bank of Commerce (NYSE:CM) is a diversified financial institution that provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the US, and internationally.
3. Bank of Montreal (NYSE:BMO)
Bank of Montreal (NYSE:BMO) is one of the best Canadian value stocks to buy. On February 25, Bank of Montreal reported a strong start to 2026 with record performance across its core segments. For FQ1, the bank achieved an adjusted EPS of $3.48, which is a 15% increase year-over-year, while net income rose 11% to $2.6 billion. This was fueled by record revenue across all business lines, most notably a 16% increase in wealth management earnings and a 10% rise in Canadian commercial banking revenue.
Strategically, the bank is nearing the completion of its US optimization efforts, which involved a $6 billion reduction in balance sheet loans over the past four quarters. While this transition and the associated $202 million in severance charges have impacted short-term growth metrics, management remains confident in achieving a 15% return on equity target.
The US segment is already showing signs of progress with a 150 basis point year-over-year improvement in return on equity, and the bank is shifting its focus toward driving future growth through talent acquisition and deeper client relationships in the American market. However, Bank of Montreal (NYSE:BMO) is monitoring the Canadian housing market, which remains soft, alongside higher delinquency rates in certain consumer segments.
Bank of Montreal (NYSE:BMO) provides diversified financial services primarily in North America. The company operates through Canadian P&C, US P&C, BMO Wealth Management, and BMO Capital Markets segments.
2. The Toronto-Dominion Bank (NYSE:TD)
The Toronto-Dominion Bank (NYSE:TD) is one of the best Canadian value stocks to buy. On February 26, Toronto-Dominion Bank reported financial results for FQ1 2026, with net earnings reaching CAD 4.2 billion and EPS of CAD 2.44. This was supported by an 11% year-over-year increase in revenue and a 19% rise in adjusted pre-tax, pre-provision profit. The bank achieved an improved return on equity of 14.2% and saw strong volume growth in its Canadian personal and commercial banking segments, which posted record results across deposits, loans, and earnings.
The bank is aggressively returning capital to shareholders, having completed an $8 billion share buyback in January and immediately launching a new $7 billion program. These buybacks, which included the repurchase of ~84 million shares, contributed to a slight decline in the CET1 ratio to 14.5%. Management indicated it plans to manage this ratio toward a 13% target by H2 FY2027.
Looking ahead, The Toronto-Dominion Bank (NYSE:TD) is focusing on strategic investments in technology and regulatory remediation. The bank plans to spend ~CAD 500 million in 2026 on US anti-money laundering remediation and is targeting CAD 1 billion in medium-term value from AI deployments. While credit provisions remained within expectations at 43 basis points, the bank is maintaining over CAD 500 million in reserves to navigate potential policy and trade uncertainties.
The Toronto-Dominion Bank (NYSE:TD), together with its subsidiaries, provides various financial products and services in Canada, the US, and internationally. It has four segments: Canadian Personal & Commercial Banking, US Retail, Wealth Management & Insurance, and Wholesale Banking.
1. Royal Bank of Canada (NYSE:RY)
Royal Bank of Canada (NYSE:RY) is one of the best Canadian value stocks to buy. On February 26, Royal Bank of Canada reported results for FQ1 2026, with net income reaching $5.8 billion and adjusted earnings reaching $5.9 billion. This was supported by nearly $18 billion in revenue and a strong return on equity of 17.6%. The bank’s diversified model drove gains across most segments, particularly in Personal Banking and Wealth Management, which saw net income increases of 18% and 32%.
While financial totals were high, the bank faced some headwinds in its lending portfolios. Mortgage growth remained modest due to housing affordability challenges and shifting immigration levels, while commercial loan growth was tempered by trade uncertainties. Additionally, the bank noted higher provisions on impaired loans, particularly within the Capital Markets and Personal Banking sectors, with total gross impaired loans rising by $485 million sequentially.
Looking forward, Royal Bank of Canada (NYSE:RY) expressed confidence in its global footprint and the performance of City National Bank, which is reportedly meeting its growth and credit targets. The bank remains focused on deploying excess capital through organic growth and disciplined share buybacks while navigating a complex macroeconomic environment marked by geopolitical tensions and regional economic pressures in Ontario.
Royal Bank of Canada (NYSE:RY) operates as a diversified financial service company worldwide. Its Personal Banking segment offers home equity financing, personal lending, chequing & savings accounts, private banking, auto financing, mutual funds, GICs, credit cards, and payment products and solutions.
While we acknowledge the potential of RY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RY and that has 100x upside potential, check out our report about this cheapest AI stock.
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