Earlier on June 30, Brianne Gardner, Senior Wealth Manager at Velocity Investment Partners, Raymond James, joined BNN Bloomberg to assess market all-time highs and suggest that Canadian stocks are outperforming the US this year. Investors showed optimism following Canada’s decision to repeal its digital services tax, which specifically targeted large tech companies. Brianne Gardner acknowledged that the market saw a significant rally since the April sell-off and noted that trade talks have once again become a central focus for investors, dominating the market theme after a period of being on the back burner. As for the performance of Canadian stocks, the S&P/TSX Composite Index had risen ~8% year-to-date, outperforming US markets despite the latter being significantly above break-even for 2025.
Gardner stated that her firm remains cautiously optimistic about Canadian stocks, particularly in light of potential rate cuts. She praised Canada’s central bank for cutting rates earlier than the US Fed, which she believes helped Canada avoid a major recession. She reiterated that Canadian stocks have comfortably outpaced US markets this year, with initial strength coming from the energy and gold sectors. However, she observed that this momentum is starting to show some cracks or fade a little bit due to mounting uncertainty, such as softer economic data and breakdowns in trade talks. This pressure, combined with the anticipation of further Bank of Canada rate decisions, suggests that the US might start to outperform Canada in H2 2025 due to its greater leverage.
That being said, we’re here with a list of the 11 cheap Canadian stocks to buy now.
A financial analyst looking at a monitor displaying the stocks of the public company.
Methodology
We sifted through the Finviz stock screener to compile a list of the top cheap Canadian stocks with a forward P/E ratio under 20. We then selected the 11 stocks with an upside potential of over 25%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q1 2025, which was sourced from Insider Monkey’s database.
Note: All data was recorded on July 22.
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).
11 Cheap Canadian Stocks to Buy Now
11. Canadian Natural Resources Limited (NYSE:CNQ)
Forward P/E Ratio as of July 22: 15.31
Number of Hedge Fund Holders: 52
Average Upside Potential as of July 22: 21.30%
Canadian Natural Resources Limited (NYSE:CNQ) is one of the cheap Canadian stocks to buy now. On July 17, National Bank raised its price target for Canadian Natural Resources to C$45 from C$43, while maintaining a Sector Perform rating on the shares. The adjustment shows an updated evaluation of the firm’s prospects and aligns with investor expectations.
The company achieved record quarterly production of ~1.82 million barrels of oil equivalents/BOEs per day in Q1 2025. Record Synthetic Crude Oil/SCO production reached 595,000 barrels per day, which was a 34% year-over-year increase.
Canadian Natural Resources also reported adjusted funds flow of ~$4.5 billion and adjusted net earnings of $2.4 billion. However, cold weather has impacted operations at Canadian Natural Resources, and there is uncertainty surrounding the timing of a Shell swap, which could influence future volume guidance. The WTI breakeven cost in the low to mid-$40s could be pressured by lower commodity prices.
Canadian Natural Resources Limited (NYSE:CNQ) is an energy company that acquires, explores, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids/NGLs in Western Canada, the UK sector of the North Sea, and Offshore Africa.
10. Equinox Gold Corp. (NYSE:EQX)
Forward P/E Ratio as of July 22: 12.92
Number of Hedge Fund Holders: 33
Average Upside Potential as of July 22: 23.61%
Equinox Gold Corp. (NYSE:EQX) is one of the cheap Canadian stocks to buy now. On July 15, Equinox Gold released its 2024 Sustainability Report, which was developed using Global Reporting Initiative/GRI and Sustainability Accounting Standards Board/SASB frameworks that provide a thorough overview of the company’s performance and progress across crucial environmental, social, and governance/ESG areas
Environmentally, the company improved performance by 31% in 2024, as compared to 2023, with a Significant Environmental Incident Frequency Rate of 0.20 per million hours worked. The company reported zero tailings or heap leach-related incidents, diverted 4,531 tonnes of hazardous and non-hazardous material, rehabilitated 38.5 hectares of land, and planted over 32,395 seedlings. Water stewardship initiatives were also advanced.
Socially, Mesquite celebrated 8 years without a lost-time injury/LTI, and Greenstone and Castle Mountain had zero LTIs in 2024. The company-wide LTI frequency rate was 0.49 per million hours worked, surpassing the target. Social investments increased to US$10.1 million, primarily for healthcare and education. Employee development programs were expanded, and a cycling relay raised over C$1.44 million for charities.
Equinox Gold Corp. (NYSE:EQX) is an energy company that acquires, explores, develops, and operates mineral properties in the Americas. The company primarily explores gold and silver deposits.
9. CGI Inc. (NYSE:GIB)
Forward P/E Ratio as of July 22: 15.31
Number of Hedge Fund Holders: 22
Average Upside Potential as of July 22: 25.44%
CGI Inc. (NYSE:GIB) is one of the cheap Canadian stocks to buy now. On July 8, CGI announced the launch of an upgraded financial and administrative system for the City of Rockville, Maryland. The initiative involved transitioning Rockville’s existing systems to the cloud-based CGI Advantage enterprise resource planning/ERP platform.
The transition is part of an ongoing partnership between the City of Rockville and CGI. Future phases will introduce additional enhancements, such as vendor self-service and open enrollment.
The upgraded CGI Advantage solution features a faster and more intuitive interface designed to improve the user experience for both remote and in-office employees. CGI Advantage is a unified ERP platform that combines modern technology with solutions specifically designed for government entities.
CGI Inc. (NYSE:GIB) provides IT and business process services, which broadly include business & strategic IT consulting, systems integration, and software solutions.
8. B2Gold Corp. (NYSE:BTG)
Forward P/E Ratio as of July 22: 6.23
Number of Hedge Fund Holders: 23
Average Upside Potential as of July 22: 27.12%
B2Gold Corp. (NYSE:BTG) is one of the cheap Canadian stocks to buy now. On July 14, B2Gold announced positive results from a Feasibility Study/FS for its 100% owned Gramalote gold project in the Department of Antioquia, Colombia.
The Feasibility Study highlights a meaningful gold production profile with favorable metallurgical characteristics. The project envisions an open-pit gold mine with an initial life of mine of 11 years, and mill processing extending over 13 years (Life of Project). The average gold grade processed is projected to be 1.23 grams per tonne (g/t) gold over the first 5 years, benefiting from the higher-grade core, and 0.96 g/t gold over the Life of Project.
Total gold production over the Life of Project is estimated at ~ 2.3 million ounces, with an average gold recovery of 95.7% from conventional milling, flotation, and cyanide leach. Average annual gold production is anticipated to be ~227,000 ounces for the first 5 years, decreasing to an average of 177,000 ounces per year over the Life of Project. The All-in Sustaining Costs/AISC are projected at $985 per gold ounce over the Life of Project, with an annual processing rate of 6.0 million tonnes per annum/Mtpa.
B2Gold Corp. (NYSE:BTG) is a gold producer company in Canada that operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia.
7. Ero Copper Corp. (NYSE:ERO)
Forward P/E Ratio as of July 22: 7.19
Number of Hedge Fund Holders: 25
Average Upside Potential as of July 22: 28.02%
Ero Copper Corp. (NYSE:ERO) is one of the cheap Canadian stocks to buy now. On July 10, Ero Copper announced the completion of its 28,000-meter Phase 1 drill program at the Furnas Copper-Gold Project in Brazil’s Carajás Mineral Province. Initial results from this program show continuity and extend the known limits of high-grade mineralization, particularly in zones identified for future underground mining operations.
Significant intercepts from the Southeast zone include 105 meters at 1.54% copper equivalent (CuEq) in hole FURN-DD-00284 and 75 meters at 1.30% CuEq in hole FURN-DD-00271, with the latter extending mineralization ~70 meters down-dip from previous limits. ~10,000 meters of assay results have been received to date, confirming strong continuity and pushing mineralization to a maximum down-dip depth of 730 meters from surface, with the deposit remaining open.
The previous National Instrument 43-101 (NI 43-101) mineral resource estimate for Furnas was based on an average historical drilling depth of 300 meters (vertical). The Phase 1 drilling focused on both infill drilling to confirm continuity and step-out drilling to extend mineralization. Notably, only one of the 66 holes drilled during this campaign failed to intercept mineralization.
Ero Copper Corp. (NYSE:ERO) is an energy company that explores, develops, and produces mining projects in Brazil.
6. Centerra Gold Inc. (NYSE:CGAU)
Forward P/E Ratio as of July 22: 8.03
Number of Hedge Fund Holders: 17
Average Upside Potential as of July 22: 28.31%
Centerra Gold Inc. (NYSE:CGAU) is one of the cheap Canadian stocks to buy now. On July 16, National Bank adjusted its price target for Centerra Gold and lowered it from C$15.25 to C$14.75. Despite the slight downgrade, the bank maintained an Outperform rating on the shares and signaled continued confidence in Centerra Gold’s prospects.
In Q1 2025, the company showed gold production of ~60,000 ounces and copper production of 12 million pounds. The company ended the quarter with a strong cash position of $608 million. Adjusted net earnings for Q1 2025 were $26 million, or $0.13 per share. Sales included over 61,000 ounces of gold at an average realized price of $2,554 per ounce, and 12.1 million pounds of copper at an average realized price of $3.80 per pound.
Molybdenum sales reached ~4.2 million pounds at an average price of $21.59 per pound. Consolidated All-In Sustaining Costs on a byproduct basis were $1,491 per ounce. The company generated $10 million in free cash flow for the quarter, with Mount Milligan contributing $39 million from operations and $27 million in free cash flow, and Oksut contributing $50 million from operations and $42 million in free cash flow.
Centerra Gold Inc. (NYSE:CGAU) is an energy company that acquires, explores, develops, and operates gold and copper properties in North America, Turkey, and internationally. It also explores for molybdenum deposits.
5. Lululemon Athletica Inc. (NASDAQ:LULU)
Forward P/E Ratio as of July 22: 15.11
Number of Hedge Fund Holders: 48
Average Upside Potential as of July 22: 29.50%
Lululemon Athletica Inc. (NASDAQ:LULU) is one of the cheap Canadian stocks to buy now. On July 18, Lululemon announced that it is expanding its international presence with the opening of its first store in Italy, with the launch on July 19, in Milan’s prominent shopping district, located at Vittorio Emanuele II 24/28.
The Milan store spans ~5,700 square feet across 2 floors and will offer a carefully curated environment for shoppers. It will feature distinct sections showcasing Lululemon’s signature technical innovations and both men’s and women’s collections, all designed for high-performance and style suitable for activities like yoga, running, training, tennis, and golf.
The store’s architectural concept is expected to blend Italian design heritage with contemporary materials, incorporating a notable Lululemon Glide sculptural facade.
Lululemon Athletica Inc. (NASDAQ:LULU) designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the US, Canada, Mexico, China Mainland, Hong Kong, Taiwan, Macau, and internationally.
4. IAMGOLD Corporation (NYSE:IAG)
Forward P/E Ratio as of July 22: 8.81
Number of Hedge Fund Holders: 27
Average Upside Potential as of July 22: 30.70%
IAMGOLD Corporation (NYSE:IAG) is one of the cheap Canadian stocks to buy now. Earlier on June 24, National Bank increased its price target for IAMGold from C$15 to C$16, while maintaining an Outperform rating on the shares. This showed a positive outlook on the company’s stock performance.
In Q1 2025, the company showed attributable gold production of 161,000 ounces. Cash costs were $1,459 per ounce, and all-in sustaining costs reached $1,908 per ounce. Mine site free cash flow increased to $140 million in Q1 2025, up from $46 million in Q1 2024. The company reported revenue of $477.1 million from the sale of 174,000 gold ounces.
IAMGold delivered 37,500 ounces under gold prepay arrangements in Q1 2025, with 25,000 ounces remaining as of April this year. The average realized gold price, which includes the impact of gold prepays, was $2,731 per ounce, rising to $2,909 per ounce when excluding this impact. Production from Cote Gold was 73,000 ounces (on a 100% basis), Westwood produced 24,000 ounces, and Essakane contributed 86,000 attributable ounces.
IAMGOLD Corporation (NYSE:IAG) is a gold producer and developer in Canada and Burkina Faso.
3. Cenovus Energy Inc. (NYSE:CVE)
Forward P/E Ratio as of July 22: 19.46
Number of Hedge Fund Holders: 39
Average Upside Potential as of July 22: 32.44%
Cenovus Energy Inc. (NYSE:CVE) is one of the cheap Canadian stocks to buy now. On July 18, CIBC analyst Dennis Fong raised the price target for Cenovus Energy to C$30 from C$28, while maintaining an Outperform rating on the shares.
In Q1 2025, the company reported strong upstream production of 819,000 barrels of oil equivalent per day (BOE/d), with Christina Lake producing 238,000 barrels per day, Foster Creek 203,000 barrels per day, and Sunrise 52,000 barrels per day. The company reported an operating margin of $2.8 billion and adjusted funds flow of ~$2.2 billion.
Cenovus also achieved a record quarterly throughput and utilization rate of 104% in Canadian refining. The company’s record Canadian refining utilization rate reflects the benefits of improvements made during the previous year’s upgrader turnaround. Additionally, Cenovus is undergoing a period of heavy turnarounds in both upstream and downstream operations, which could impact short-term production and financial results.
Cenovus Energy Inc. (NYSE:CVE) is an energy company that develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada, the US, and China.
2. McEwen Inc. (NYSE:MUX)
Forward P/E Ratio as of July 22: 13.5
Number of Hedge Fund Holders: 17
Average Upside Potential as of July 22: 33.16%
McEwen Inc. (NYSE:MUX) is one of the cheap Canadian stocks to buy now. On July 2, Inventus Mining Corp. announced that it has signed a milling agreement with McEwen Mining for processing bulk sample material from its wholly-owned Pardo Gold Project. The project is located 65 km northeast of Sudbury, Ontario, Canada, and benefits from proximity to established mining infrastructure.
Under the agreement, Inventus can process up to 5,000 tonnes per month, with a total capacity of up to 45,000 tonnes, at McEwen Mining’s Stock Mill, located in Timmins, Ontario. A previous 1,000-tonne bulk sample from Pardo, processed at the Stock Mill in 2017, yielded an average grade of 4.2 grams per tonne/gpt gold with an 89% recovery rate. Inventus anticipates that recoveries could reach up to 95% under optimized conditions based on prior metallurgical testing.
Bulk sample extraction at the 007 North site, which targets 5,000 tonnes, is proceeding on schedule, with waste removed and gold mineralization being prepared for crushing and trucking to the Stock Mill. Processing of this material is expected to commence in late July, with a series of planned bulk samples continuing into H1 2026. The 007 North bulk sample specifically targets flat-lying gold mineralization located within 6 meters of the surface, which was previously reported, in June, to have an average grade and thickness of 3.84 gpt gold over 1.82 meters.
McEwen Inc. (NYSE:MUX) is an energy company that explores, develops, produces, and sells gold and silver deposits in the US, Canada, Mexico, and Argentina. It also explores for copper deposits.
Inventus is a mineral exploration and development company that is focused on the world-class mining district of Sudbury, Ontario.
1. Enerflex Ltd. (NYSE:EFXT)
Forward P/E Ratio as of July 22: 11.79
Number of Hedge Fund Holders: 15
Average Upside Potential as of July 22: 37.66%
Enerflex Ltd. (NYSE:EFXT) is one of the cheap Canadian stocks to buy now. On July 14, Enerflex announced that it has extended its syndicated secured revolving credit facility/RCF. An amended and restated credit agreement, dated July 11 this year, has pushed the RCF’s maturity date forward by 3 years, to July 11 in 2028.
The total availability under the RCF remains unchanged at $800 million. As of March 31, Enerflex had drawn $117 million from this facility. Royal Bank of Canada serves as the agent for the RCF, and Enerflex confirmed that all current syndicate members have renewed their lending commitments.
Additionally, the company maintains a separate $70 million unsecured credit facility/LC Facility with one of its RCF syndicate lenders, which is backed by performance security guarantees from Export Development Canada.
Enerflex Ltd. (NYSE:EFXT) offers energy infrastructure and energy transition solutions in North America, Latin America, and the Eastern Hemisphere.
While we acknowledge the potential of EFXT 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 EFXT and that has 100x upside potential, check out our report about this cheapest AI stock.
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