4 Cheap Canadian Stocks That Can Still Grow Their Earnings Next Year

While economic growth is expected to slow significantly in 2023, these four Canadian stocks are cheap and have significant growth potential.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Throughout the year, numerous Canadian stocks have been falling in value and are now unbelievably cheap as their business operations come under pressure.

Some stocks have lost value because their earnings are expected to be impacted in the short-term. Companies are predominantly losing value because the market environment is shifting, which is why stocks across the board are selling off.

As you’ll see below, there are plenty of opportunities to buy stocks that are cheap today, even though they’re expected to grow their businesses in the short-term. So, if you’re looking for cheap Canadian stocks to buy now, here are four of the best to consider.

A top environmental services stock

GFL (TSX:GFL)(NYSE:GFL) has rapidly become the fourth largest environmental services company in North America, an industry that’s highly defensive and perfect for this environment.

And not only is GFL cheap today, trading roughly 33% off its 52-week high, it’s one of the best Canadian stocks to buy because it’s so reliable and it’s expected to grow its sales by over 17% this year and another 8% next year, which will be achieved both organically and through acquisitions.

Furthermore, its earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to grow over 17% this year and 13% next year. So, if you’re looking for cheap Canadian stocks to buy, GFL is a top choice.

A top growth by acquisition stock

Another of the many Canadian stocks that have recently become cheap is Neighbourly Pharmaceutical (TSX:NBLY). The company has been acquiring independent pharmacies across the country and consolidating the industry under just a few brand names. This is a strategy that has a tonne of potential over the long run.

However, in the short-term, Neighbourly stock has been selling off and is now more than 50% off its 52-week high.

Despite its stock price underperforming, Neighbourly’s business is excelling. In fact, its revenue is expected to grow by roughly 40% this year and by more than 75% next year. In addition, its EBITDA is expected to grow by over 30% this year and by more than 80% next year.

So, if you’re looking for cheap Canadian stocks to buy now, Neighbourly looks like it has a tonne of upside.

A top Canadian tech stock

Shopify (TSX:SHOP)(NYSE:SHOP) stock has been out of favour for almost a year now, and there’s no question that among Canadian tech stocks, it’s extremely cheap.

Its growth has been slowing down since the days of the pandemic, but the stock is still growing. In fact, this year, sales are expected to grow by 19% and next year by nearly 25%.

Furthermore, Shopify is expected to report positive earnings again next year, both on the bottom line and for its EBITDA. So, while this high-quality stock trades severely undervalued, it’s one of the best investments to make today.

A top Canadian retail stock

Many retail stocks have been struggling since the pandemic and continue to face a rough ride in the current market environment. Companies that predominantly sell discretionary items could feel a major impact on their businesses as consumption continues to slow.

However, one stock that continues to impress and beat expectations is Aritzia (TSX:ATZ), the vertically integrated women’s fashion retailer.

Aritzia has been successfully expanding its business in recent years, both with brick-and-mortar stores and through its high-quality e-commerce platform.

So, with the stock continuing to sell off as market conditions worsen, it’s now so cheap that it’s one of the best Canadian stocks you can buy.

Plus, as its value gets cheaper, Aritzia continues to grow. This year, its sales growth is expected to come in at over 75%, while next year, it’s expected to grow sales by another 27%. Plus, it’s expected to earn record earnings per share of $1.53 this year and grow that by nearly 12% next year.

So while Aritzia stock is this cheap, it’s easily one of the best Canadian stocks you can buy today.

Should you invest $1,000 in Nike right now?

Before you buy stock in Nike, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Nike wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has positions in ARITZIA INC. The Motley Fool has positions in and recommends ARITZIA INC and Shopify. The Motley Fool has a disclosure policy.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Investing

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Investing

The Best Canadian Stocks to Buy and Hold Forever in a TFSA

For investors looking to add to their TFSA, here are two top Canadian growth stocks that may be worth buying…

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Investing

2 Brilliant Canadian Stocks to Buy Now and Hold for the Long Term

A small-cap and a large-cap Canadian tech stock can both be terrific holdings to consider for your self-directed investment portfolio,…

Read more »

calculate and analyze stock
Investing

Top Canadian Stocks to Buy Right Now With $7,000

Given their solid underlying businesses, consistent performances, and healthy growth prospects, the following three Canadian stocks are ideal additions to…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

6% Dividend Yield? Buy This Top-Notch Dividend Stock in Bulk!

This top-notch dividend stock offers a high and sustainable yield of about 6%, enabling you to generate resilient passive income.

Read more »

data analyze research
Dividend Stocks

2 High-Dividend TSX Stocks to Buy for Increasing Payouts

For big dividends with increasing payouts, look more closely at TD and CNQ today!

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

Better Dividend Stock: TD vs. BCE

TSX dividend stocks such as TD and BCE offer shareholders a tasty dividend yield. But which blue-chip stock is a…

Read more »

Make a choice, path to success, sign
Dividend Stocks

Magna International: Buy, Sell, or Hold in 2025?

Magna International stock: A 5.5% dividend yield and a cheap 8.1 forward P/E – Can the automotive sector stock outrun…

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

Best Stock to Buy Right Now: Barrick Gold vs Agnico Eagle?

Agnico-Eagle Mines stock continues to soar off of strong results while Barrick Gold grapples with political troubles in its African…

Read more »