3 TSX Stocks That Might Be Undervalued In August 2024
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The Canadian stock market has experienced significant volatility recently, with notable swings and a modest overall change despite dramatic headlines. Amid this turbulence, identifying undervalued stocks can be crucial for investors seeking opportunities in a fluctuating market.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| goeasy (TSX:GSY) | CA$187.29 | CA$357.89 | 47.7% |
| Alvopetro Energy (TSXV:ALV) | CA$4.86 | CA$9.18 | 47.1% |
| Computer Modelling Group (TSX:CMG) | CA$12.86 | CA$22.31 | 42.4% |
| Kinaxis (TSX:KXS) | CA$154.71 | CA$285.47 | 45.8% |
| AtkinsRéalis Group (TSX:ATRL) | CA$52.52 | CA$96.25 | 45.4% |
| Kraken Robotics (TSXV:PNG) | CA$1.27 | CA$2.54 | 49.9% |
| Viemed Healthcare (TSX:VMD) | CA$10.45 | CA$20.08 | 48% |
| NFI Group (TSX:NFI) | CA$19.00 | CA$37.86 | 49.8% |
| Green Thumb Industries (CNSX:GTII) | CA$15.45 | CA$30.31 | 49% |
| NanoXplore (TSX:GRA) | CA$2.38 | CA$4.22 | 43.6% |
Let's dive into some prime choices out of the screener.
Cresco Labs
Overview: Cresco Labs Inc., along with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States, with a market cap of CA$963.14 million.
Operations: Cresco Labs Inc. generates revenue through the cultivation, manufacturing, and sale of retail and medical cannabis products in the United States.
Estimated Discount To Fair Value: 38.9%
Cresco Labs is trading at CA$2.15, significantly below its estimated fair value of CA$3.52, indicating it may be undervalued based on cash flows. Despite recent insider selling and a net loss of US$54.33 million for Q2 2024, the company is expected to become profitable within three years with earnings forecasted to grow by 133.22% annually. Recent expansion into Ohio's adult-use market could bolster future revenue streams despite current sales declines.
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The growth report we've compiled suggests that Cresco Labs' future prospects could be on the up.
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Click here to discover the nuances of Cresco Labs with our detailed financial health report.
Canfor
Overview: Canfor Corporation is an integrated forest products company with operations in the United States, Asia, Canada, Europe, and internationally, and has a market cap of CA$1.72 billion.
Operations: Canfor generates revenue primarily from its Lumber segment, which accounts for CA$4.67 billion, and its Pulp & Paper segment, contributing CA$825 million.
Estimated Discount To Fair Value: 10.2%
Canfor Corporation (CA$14.51) is trading at 10.2% below its estimated fair value of CA$16.15, indicating it may be undervalued based on cash flows. Despite reporting a net loss of CA$191.1 million for Q2 2024, the company is expected to become profitable within three years with an annual profit growth forecast above market average and revenue growth outpacing the Canadian market slightly at 6.7% per year.