In this piece, we will take a look at five undervalued Canadian stocks to invest in. If you want to understand the Canadian economy, head on over to 10 Undervalued Canadian Stocks To Invest In.
5. Algoma Steel Group Inc. (NASDAQ:ASTL)
Latest P/E Ratio: 5.55
Algoma Steel Group Inc. (NASDAQ:ASTL) is a steel manufacturer that sells its products to a variety of industries such as car manufacturing, rail manufacturing, and construction. The firm’s revenue and net income for its fiscal year 2023 fell significantly as it battled with falling steel prices and high inflation. The shares are rated Buy on average.
By the end of 2023’s first quarter, 31 of the 943 hedge funds part of Insider Monkey’s database had bought Algoma Steel Group Inc. (NASDAQ:ASTL)’s shares. The firm’s largest investor is Len Kipp and Xavier Majic’s Maple Rock Capital courtesy of a $52 million investment.
Follow Algoma Steel Group Inc. (NASDAQ:ASTL)
Follow Algoma Steel Group Inc. (NASDAQ:ASTL)
4. Imperial Oil Limited (NYSE:IMO)
Latest P/E Ratio: 5.45
Imperial Oil Limited (NYSE:IMO) is one of the oldest companies on our list. It produces and sells petroleum products such as crude oil and natural gas. While it has beaten analyst EPS estimates for all of its previous four quarters, analyst sentiment has been shifting to Underperform or Hold as of late.
19 of the 943 hedge funds profiled by Insider Monkey for their Q1 2023 shareholdings had invested in the firm. Out of these, the largest hedge fund shareholder is Jean-Marie Eveillard’s First Eagle Investment Management with a stake worth $1.2 billion.
Follow Imperial Oil Ltd (NYSEMKT:IMO)
Follow Imperial Oil Ltd (NYSEMKT:IMO)
3. Nutrien Ltd. (NYSE:NTR)
Latest P/E Ratio: 4.72
Nutrien Ltd. (NYSE:NTR) is an agricultural raw materials firm that sells urea, nitrates, and potash products. Institutional investors have invested heavily in the stock, with the latest estimates showing that 71% of its shares are held by them.
After sifting through 943 hedge funds for their March quarter of 2023 investments, Insider Monkey discovered that 32 had bought Nutrien Ltd. (NYSE:NTR)’s shares. Jean-Marie Eveillard’s First Eagle Investment Management is the largest investor with an investment worth $629 million.
Follow Nutrien Ltd. (NASDAQ:NTR)
Follow Nutrien Ltd. (NASDAQ:NTR)
2. Enerplus Corporation (NYSE:ERF)
Latest P/E Ratio: 3.51
Enerplus Corporation (NYSE:ERF) is an oil and gas company with operations in several American states. It is another stock whose shares are rated Strong Buy on average, and between April and July, no analyst rated the stock below Buy.
17 of the 943 hedge funds part of Insider Monkey’s database had invested in the firm during 2023’s first quarter. Enerplus Corporation (NYSE:ERF)’s largest investor is Phill Gross and Robert Atchinson’s Adage Capital Management with a $101 million stake.
Follow Enerplus Resources Fund (NYSE:ERF)
Follow Enerplus Resources Fund (NYSE:ERF)
1. Zymeworks Inc. (NASDAQ:ZYME)
Latest P/E Ratio: 2.93
Zymeworks Inc. (NASDAQ:ZYME) is a biotechnology firm. It develops drugs for different kinds of cancers and tumors. The shares are rated Strong Buy on average and have a $6 share price upside.
After sifting through 943 hedge funds for their first quarter of 2023 investments, Insider Monkey discovered that 24 had bought Zymeworks Inc. (NASDAQ:ZYME)’s shares.
Follow Zymeworks Bc Inc. (NYSE:ZYME)
Follow Zymeworks Bc Inc. (NYSE:ZYME)
Disclosure: None. You can also take a look at 12 Best Dow Stocks to Buy Now and 15 High Growth Large Cap Stocks to Invest In.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
