2 Undervalued TSX Stocks to Buy in January and Never Look Back

There are certainly plenty of undervalued stocks for investors to take note of, and I’ve long believed that the Canadian market is one where value-seekers should buy. I believe it is this valuation gap that has driven much of the TSX’s outperformance against the US and other highly valued developed markets over the course of the past year. I believe this trend could continue, meaning there are some valuable opportunities to pursue in January.

Without further ado, here are two of my top picks for investors in 2026.

Whitecap Resources

At less than 10 times current and future earnings, Whitecap Resources (TSX:WCP) is a company I would clearly put in the undervalued bucket.

Of course, I also touted this stock as a monthly dividend champion (which it is). And Whitecap Resources is also a top growth player, with solid production growth from its core oil and gas operations boosting the company’s revenue, earnings and cash flow in recent years.

I believe this growth will continue, allowing Whitecap to increase its dividend over time and offer all investors a little bit of everything. For those who want to create an all-weather portfolio, and do so by picking individual stocks, this is a top core portfolio idea if I’ve ever heard of one.

Personally, I would like to see Whitecap trade a little lower here so that investors can get in at an even better price. But with solid underlying fundamentals and a multiple of less than 10, in my opinion it’s hard to find a better value in the market today.

Restaurant brands

Another top pick of mine, for a wide variety of reasons, was Restaurant brands (TSX:QSR). Indeed, this is a stock I’ve been hammering on for more than five years, and I stand by my buy recommendations.

I have to admit, I haven’t seen the kind of organic growth I was hoping for years ago when I made my first bullish call on Restaurant Brands. And during this time, it has certainly been a bumpy ride. Many menu changes, acquisitions and announcements have been made during this period.

That said, Restaurant Brands’ core portfolio of world-class fast food chains is unparalleled. With Canada’s favorite Tim Horton’s and major American chains like Burger King and Popeye’s headlining Restaurant Brands’ growing portfolio of restaurants, this is a company with thousands of locations around the world that’s worth considering right now.

What I’m particularly focused on is this company’s current price-to-earnings ratios. At just 12.5 times forward earnings, QSR stock trades like it’s a very slow-growing or mature name. I don’t think this will ultimately be the case, as Restaurant Brands’ growth profile is superior to many of its major competitors.

For those who feel the same way, I think Restaurant Brands is a screaming buy here, and I’m going to keep this on the table until something significant changes.