Market sell-offs can feel stressful, especially when you watch stocks tumble day after day. But seasoned investors know something valuable. When the market gets anxious, it tends to toss good stocks into the bargain bin. That means blue-chip stocks on the TSX, those reliable companies with solid track records, might now be offering a rare chance to buy at prices lower than their true worth. Want some examples? Today we’ll get into a whopping five stocks looking undervalued on the TSX today.
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BCE
BCE (TSX:BCE) is one of Canada’s leading telecommunications providers, known for its steady cash flows and generous dividend. Recently, though, its stock price has dropped to around $33.92 as of writing. At first glance, investors might wonder if something’s wrong. But digging into its recent earnings paints a reassuring picture.
In the fourth quarter of 2024, BCE reported net earnings of $505 million, up more than 16% from the same quarter the previous year. Even better, earnings attributed directly to shareholders rose over 20%. Yet despite these solid results, the market hasn’t rewarded it just yet. That disconnect could signal a great chance for income-focused investors, especially with its dividend yield now hovering near 12%.
Canadian Natural Resources
Then there’s Canadian Natural Resources (TSX:CNQ), a heavyweight in Canada’s energy sector. This TSX stock is known for efficiently producing oil and natural gas even when prices are volatile. Recently, oil prices have been shaky, but Canadian Natural continues performing strongly.
For the fourth quarter of 2024, it earned about $1.1 billion in net profit, maintaining strong cash flows despite tough market conditions. Production actually rose slightly, hitting 1.47 million barrels of oil equivalent per day, up from 1.42 million the year before. Even with that strength, the TSX stock trades at about $65.50. Investors worried about energy volatility might overlook it, but those looking deeper might see an undervalued gem.
Enbridge
Another major player worth mentioning is Enbridge (TSX:ENB), a familiar name to anyone watching Canadian energy. Its pipelines and gas distribution networks are crucial for North America’s energy infrastructure. Yet Enbridge’s stock has slipped to about $50 recently. Again, investors might be missing a good story here. In its latest quarterly results, Enbridge grew its adjusted core profit to roughly $1.3 billion, benefiting from higher pipeline tolls and strong earnings from newly acquired utilities. Its decision to expand its utilities business with strategic acquisitions seems well-timed, particularly given recent shifts toward more stable energy sources. Yet, the market remains cautious, making its current price attractive for those betting on long-term stability.
Scotiabank
Next up is the Bank of Nova Scotia (TSX:BNS), which has long been one of Canada’s trusted banks. Scotiabank recently reported strong first-quarter earnings in 2025, boosted by a healthy performance from its capital markets and wealth management units. Lower interest rates have helped drive more mergers and acquisitions, and Scotiabank is benefiting from that wave.
The TSX stock’s strategic shift toward lower-risk markets, notably by reducing exposure in some Latin American countries, seems promising. At approximately $72 per share, Scotiabank appears undervalued relative to its peers,especially considering its higher-than-average dividend yield of over 6%. Investors aiming for steady dividends plus potential upside in the banking sector might find Scotiabank’s current price compelling.
Bombardier
Lastly, BRP (TSX: DOO) is worth a look for investors interested in consumer goods. Known widely for its recreational vehicles like Sea-Doos and Ski-Doos, BRP stock has dropped significantly, now around $55.35 per share. Despite short-term fluctuations, the TSX stock’s position as a market leader hasn’t changed.
Its innovative product lines continue to capture strong customer demand, yet the TSX stock remains undervalued. This could offer an appealing opportunity for investors confident in the resilience of consumer spending on leisure and outdoor activities.
Bottom line
Investors should remember a few key considerations when browsing through these discounted TSX stocks. Understanding a company’s financial health through recent earnings is crucial. Market conditions, like oil prices and interest rates, also matter. Finally, assessing management’s strategic decisions can indicate long-term value. Yet remember, market sell-offs aren’t always bad news. They often open doors to invest in great companies at bargain prices. And these certainly look like a bargain on the TSX today.
