The Canadian stock market has continued to rise in 2025 S&P/TSX composite index is up about 20% year to date, despite ongoing rate-related uncertainties. Rate cuts and the resilience of the broader economy have helped many Canadian stocks deliver exceptional returns this year. However, the shares of a number of fundamentally sound companies are still trading at attractive valuations, making them too cheap to miss.
So if you have $500, now could be a good time to invest in these undervalued but fundamentally strong Canadian companies. These stocks have the potential to generate meaningful capital gains.
In this context, here are two Canadian stocks that are too cheap to miss.
TSX Stock #1: Easy
easy (TSX:GSY) is one of the best TSX stocks that is too cheap to miss. The provider of credit and leasing services has seen its shares fall by almost 30% in the past three months. This decline in stock prices is largely due to a short-seller report from Jehoshaphat Research, which accuses the company of manipulating its accounting to boost profits and hide credit losses.
The stock took another hit after the subprime lender’s latest quarterly results showed profits under pressure. In particular, the shift from goeasy to secured loans, stricter underwriting standards, higher provisions for credit losses and rising financing costs negatively impacted operating results. While these factors have weighed on short-term performance, they also indicate a more conservative and risk-conscious approach to lending.
Importantly, goeasy has dismissed the short-seller’s claims and reaffirmed its financial outlook. Furthermore, the shift to secured lending, while lowering interest rates, increases stability and reduces long-term credit risk. As the company maintains operational discipline, margins and profits are well positioned to recover over time.
Demand for goeasy’s lending solutions remains robust, with loan growth in the unsecured, home equity, auto financing and point-of-sale segments. The diversified financing base, solid underwriting capabilities and steady expansion into new markets and products provide a strong platform for sustainable growth.
After the recent sell-off, goeasy now trades at 6.6 times expected earnings over the next twelve months, well below the historical average. With solid fundamentals, double-digit earnings growth potential and a 4.5% dividend yield, GSY’s current weakness offers investors a rare opportunity to buy shares of this fast-growing company at a discount.
TSX Stock #2: MDA Space
MDA space (TSX:MDA) shares have lost significant value and are down about 50% over the past three months. This space technology company’s shares came under significant pressure due to concerns about its large contracts. However, this decline presents a solid buying opportunity as the fundamentals remain solid and the company operates in a fast-growing space economy.
The downturn began when EchoStar scrapped a multibillion-dollar satellite deal and sold its spectrum licenses to SpaceX. Sentiment soured after reports suggested Globalstar, MDA’s top customer, may be in early talks to sell to SpaceX. That raised concerns that SpaceX could bring Globalstar’s future satellite production in-house, potentially undermining MDA’s $1.1 billion contract to build digital satellites.
Yet the foundations of MDA are solid. The company is a leader in the field of digital satellite systems, robotics and geo-intelligence. These areas are likely to benefit from rising global demand for communications, defense and Earth observation. In addition, MDA’s solid balance sheet provides the flexibility to take advantage of growth opportunities.
As the space industry continues to attract significant investment from both governments and private players, MDA appears well positioned to capitalize on new opportunities. Overall, the sharp decline in share price despite solid fundamentals and strong demand environment makes MDA Space stock an attractive investment.
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