Where I’d Put $10,000 in 3 TSX Stocks Trading at Bargain Prices Today

Here are three undervalued TSX stocks Canadian investors should buy and hold over the next decade.

Aditya Raghunath

Aditya Raghunath joined the Motley Fool Canada team in 2019 and has close to seven years of experience in covering publicly-listed companies. With a post-graduate degree in finance, Aditya aims to educate and engage Canadians by writing extensively about growth, dividend, and value stocks. If you are considering investing in the stock market, he recommends reading The Intelligent Investor by Benjamin Graham before taking the plunge.

Published April 24, 2025 11:45 am EDT

| More on: ELVAGRAPRN

Investing in cheap or undervalued stocks with strong fundamentals should help Canadians generate outsized gains over time. In this article, I have identified three TSX stocks that are trading at bargain prices in April 2025.

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Is this TSX stock undervalued right now?

Profound Medical (TSX:PRN) reported its strongest quarter yet, with fourth-quarter (Q4) revenue doubling year over year to $4.2 million and gross margins reaching 71%, up from 52% the previous year. It also reduced its net loss by 45% to $4.9 million.

The medical device maker, which specializes in MRI-guided prostate tissue ablation, is benefiting from Medicare reimbursement that took effect on January 1, 2025, at a higher payment level than competing technologies. Moreover, the management is transitioning from a placement model to capital sales while expanding its commercial team.

Profound’s TULSA-PRO system is positioned as uniquely capable of treating a broader range of prostate conditions thanks to its precision MRI-guided approach.

Analysts expect Profound to increase sales from $15.2 million in 2024 to $291 million in 2029. Its adjusted earnings are forecast to touch $4.42 per share in 2029 compared to a loss of $1.60 per share in 2024. If the TSX stock is priced at 20 times forward earnings, it should trade around $90 in early 2029, up from its current price of $6.46.

Is this small-cap TSX stock a good buy?

Valued at a market cap of $142 million, Electrovaya (TSX:ELVA) is engaged in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products.

According to Bay Street estimates, it is forecast to increase revenue from $44.6 million in fiscal 2024 (ended in September) to $254 million in fiscal 2029. Moreover, it is forecast to turn profitable and report an adjusted earnings per share (EPS) of $0.12 per share in 2025, compared to a loss of $0.04 per share in 2024. Its EPS is also forecast to expand to $0.88 in 2029.

So, if the stock is priced at 20 times forward EPS, it will trade around $ 17.50, indicating an upside potential of almost 400% from current levels.

Should you own this growth stock today?

The final undervalued TSX stock on my list is NanoExplore (TSX: GRA), which has a market capitalization of $408 million. NanoExplore manufactures and supplies graphene powder for use in the Australian industrial market. It offers graphene-based solutions, including GrapheneBlack powder and graphene-enhanced masterbatch pellets.

Analysts tracking NanoExplore expect the company’s revenue to increase from $130 million in fiscal 2024 (ended in June) to $339 million in 2028. It is forecast to report earnings of $0.22 per share in fiscal 2028, compared to a loss of $0.07 per share in 2024. Further, Bay Street projects its free cash flow to increase to $81.4 million in 2028, compared to an outflow of $10.3 million in 2025.

If the TSX stock is priced at 20 times forward FCF, it will be valued at a market cap of $1.6 billion, indicating an upside potential of 300% in the next two years. Analysts remain bullish and expect the chemicals stock to gain around 80% over the next 12 months.