5 Cheap Canadian Stocks to Buy

In this article, we will be taking a look at 5 cheap Canadian stocks to buy. To see more such stocks, you can go directly to see the 10 Cheap Canadian Stocks to Buy.

5. Bank of Montreal (NYSE:BMO)

Average Analyst Price Target: $108.62

Upside Potential as of April 2: 21.89%

Number of Hedge Fund Holders: 12

Bank of Montreal (NYSE:BMO) is a diversified banking company based in Montreal, Canada. It offers personal banking products and services.

Joo Ho Kim, an analyst at Credit Suisse, holds an Outperform rating on Bank of Montreal (NYSE:BMO) shares as of March 1.

Bank of Montreal (NYSE:BMO) has a P/E ratio of 7.54, which makes it a bargain relative to other Canadian banks with P/E ratios mostly above 9. Analysts have an average price target of $108.62 on the shares, with a high forecast of $118.51.

There were 12 hedge funds long Bank of Montreal (NYSE:BMO) in the fourth quarter, with a total stake value of $108 million.

4. Nutrien Ltd. (NYSE:NTR)

Average Analyst Price Target: $91.61

Upside Potential as of April 2: 24.05%

Number of Hedge Fund Holders: 40

Nutrien Ltd. (NYSE:NTR) is a fertilizers and agricultural chemicals company based in Saskatoon, Canada. The company provides crop inputs and services.

HSBC analysts have a Hold rating on Nutrien Ltd. (NYSE:NTR) shares as of February 21.

The company is among the largest fertilizer companies in the world, with immense dominance in potash and phosphates. Nutrien Ltd. (NYSE:NTR) has an EV/Revenue multiple of 0.11 and a P/E ratio of 7.74. Analysts have an average price target of $91.61 on the shares.

Nutrien Ltd. (NYSE:NTR) had 40 hedge funds long its stock in the fourth quarter. Their total stake value was $755 million.

ClearBridge Investments, an investment management company, mentioned Nutrien Ltd. (NYSE:NTR) in its third-quarter 2022 investor letter. Here’s what the firm said:

“However, we believe this is exactly the kind of environment that separates the highest-quality companies from their peers and allows them to strengthen their competitive positioning. For example, Nutrien Ltd. (NYSE:NTR), a Canadian fertilizer company, was a top contributor during the quarter. While the war in Ukraine and economic sanctions on Russia have significantly reduced the output of two of the world’s largest agricultural producers, Nutrien has benefited from a strong global agricultural cycle and from farmers seeking to increase their output and capitalize on higher agricultural prices.”

3. Toronto-Dominion Bank (NYSE:TD)

Average Analyst Price Target: $75.12

Upside Potential as of April 2: 25.41%

Number of Hedge Fund Holders: 17

Toronto-Dominion Bank (NYSE:TD) is another diversified banking company on our list. It is based in Toronto, Canada.

Analysts at Barclays hold an Overweight rating on Toronto-Dominion Bank (NYSE:TD) shares as of March 3.

Toronto-Dominion Bank (NYSE:TD) is the sixth-largest bank in North America, deriving 55% of its revenues from Canada and 35% of its revenues from the US. It has a P/E ratio of 10.76, which is lower than its five-year average P/E of 11.29. Analysts have an average price target of $75.12 on the shares.

Our hedge fund data for the fourth quarter shows 17 funds long Toronto-Dominion Bank (NYSE:TD), with a total stake value of $185 million.

2. Canadian Natural Resources Limited (NYSE:CNQ)

Average Analyst Price Target: $70.83

Upside Potential as of April 2: 27.97%

Number of Hedge Fund Holders: 41

Canadian Natural Resources Limited (NYSE:CNQ) is an oil and gas exploration company. It is based in Calgary, Canada.

Devin McDermott, an analyst at Morgan Stanley, holds an Equal Weight rating on  Canadian Natural Resources Limited (NYSE:CNQ) shares as of March 27.

The EV/Revenue multiple for  Canadian Natural Resources Limited (NYSE:CNQ) is 2.22, and its P/E ratio is 9.44. These figures show that the stock is currently undervalued relative to its intrinsic potential. The average price target on the shares is $70.83, with a high forecast of $95.

Out of the 943 hedge funds tracked by Insider Monkey in the fourth quarter, 41 hedge funds were long  Canadian Natural Resources Limited (NYSE:CNQ). Their total stake value was $1.8 billion.

1. Suncor Energy Inc. (NYSE:SU)

Average Analyst Price Target: $40.07

Upside Potential as of April 2: 29.05%

Number of Hedge Fund Holders: 47

Suncor Energy Inc. (NYSE:SU) is an integrated oil and gas company. It is based in Calgary, Canada.

Morgan Stanley’s Devin McDermott holds an Overweight rating on Suncor Energy Inc. (NYSE:SU) shares as of March 27.

Wall Street analysts have placed an average price target of $40.07 on Suncor Energy Inc. (NYSE:SU) shares, which were trading at $31.05 on April 2. This gives the stock an upside potential of 29.05%. The company’s P/E ratio is 6.94, and its EV/Revenue multiple is 1.19.

A total of 47 hedge funds were long Suncor Energy Inc. (NYSE:SU) in the fourth quarter, with a total stake value of $2.5 billion.

Artisan Partners, an investment management company, mentioned Suncor Energy Inc. (NYSE:SU) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Suncor Energy Inc. (NYSE:SU), a Canada-based operator of oil sands mines, refineries and retail gas stations, was the third-largest contributor to return for the year, mainly due to higher oil prices. The share price increased by one third. Notably, the portfolio generated significant returns from energy stocks, including Suncor, Tenaris, Imperial Oil and tangentially Alimentation Couche-Tarde and Seven & i Holdings, both of which are in the gas station business. Given the cyclicality and commodity nature of the oil business, we have sold shares of these investments, including the complete sale of both Tenaris and Imperial Oil.”

See also 12 Best Canadian Stocks To Buy and Hold and 11 Undervalued Canadian Stocks To Buy.