Your 2026 Investing Playbook: Value Plus Growth in Two Simple Stocks

For Canadian investors looking for a little more appreciation in the new year, it’s worth checking out the list of names whose valuation numbers are still at the low end of the historical range. Of course, it’s harder to pick stocks that have a serious lack of momentum. However, as market waters become rougher, it’s these lower-valued stocks with low multiples that may be able to make progress even if the tides turn against them.

In any case, the TSX Index has a good chance of reaching new all-time highs after a strong Thursday. And even though your portfolio of individual names may be lagging behind the blazing market average, I still think chasing “what worked” may not be the best move, especially if it means paying a big, fat premium for stocks that are demonstrably expensive and at greater risk of a more severe pullback once the next market-wide correction arrives.

In any case, investors should pay careful attention to the longer-term roadmap and the price of entry, and perhaps less to the short-term momentum, which could go either way as the TSX Index’s climb flattens out after a year in which shares are up nearly 30%. If you value caution and defense over aggression and the pursuit of momentum, you may be on the right track.

Here are two easy stocks that I think stand out for value hunters looking for relative safety or, at the very least, lower volatility.

easy

Shares of easy (TSX:GSY) had a rough last year, with shares down more than 21% over time. Undoubtedly, a CEO change to end the year may not be what investors had on their wish list. Be that as it may, the stock has a small amount of renewed momentum behind it and is now up 10% in the past month after a painful 45% drop from peak to trough.

While the alternative lender’s shares remain more volatile than the market, I think its valuation is starting to look attractive, especially when you consider the potential for robust growth over the next three years. With a price-to-earnings ratio of 9.9 times, goeasy stands out as one of those high-value names worth braving despite weakness, even though the upside catalysts may be out of sight in January.

With the tough earnings reports in the rearview mirror and a short report likely already priced in, it might be time to start nibbling. Be careful, though, as the $2.1 billion lender’s stock could go either way in the short term. And it is unclear whether the new CEO can act as a catalyst this year. We’ll just have to wait and see. However, with a nice return of 4.4%, there is plenty of reward to be had for those who are comfortable with the risks.

Cenovus energy

Cenovus energy (TSX:CVE) shares also look like a good deal to start 2026. The stock yields a nice 3.6%, but has seen tremendous volatility over the past four years. The latest plunge is undoubtedly due to the US-Venezuela situation, which has put Canadian energy stocks in a difficult position.

While the decline may be exaggerated, I do think the longer-term impact on Canadian crude could get worse. As such, I’d be a small nibbler rather than a big buyer. The trailing price-to-earnings ratio of 13.1 times is enticing, especially as the company ramps up production without maintaining cost discipline.

All told, you’re paying a modest multiple for a well-managed operator in an uncertain environment. If you don’t have energy exposure, the name might be worth keeping an eye on until 2026.