{"id":130922,"date":"2025-09-09T10:04:06","date_gmt":"2025-09-09T10:04:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/130922\/"},"modified":"2025-09-09T10:04:06","modified_gmt":"2025-09-09T10:04:06","slug":"2-undervalued-tsx-stocks-id-buy-before-they-correct-to-the-upside","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/130922\/","title":{"rendered":"2 Undervalued TSX Stocks I’d Buy Before They Correct to the Upside"},"content":{"rendered":"\n

Investing in undervalued stocks<\/a> growing at a steady pace is a proven strategy to generate market-beating returns for shareholders. In this article, I have identified two cheap TSX stocks<\/a> that are well-positioned to deliver outsized returns over the next five years. Let\u2019s see why.<\/p>\n

Is this TSX stock a good buy right now? <\/p>\n

Valued at a market cap<\/a> of $5.5 billion, MDA Space (TSX:MDA<\/a>) provides satellite-based geo-intelligence solutions for national security and climate monitoring, autonomous robotics for space and planetary missions, and satellite communication systems.<\/p>\n

MDA Space operates RADARSAT-2, distributes satellite imagery and data, develops robotic systems for space exploration, and builds communication satellites for broadband internet and IoT connectivity serving government and commercial clients globally.<\/p>\n

MDA Space reported robust second-quarter results, showcasing strong execution across its diversified space technology portfolio. It also secured transformational contract awards, positioning the company for sustained growth.<\/p>\n

In Q2, MDA Space reported revenue of $373 million, a 54% year-over-year increase, driven by increased activity in its Satellite Systems business. Its adjusted EBITDA grew by 57% year over year to $76 million, indicating a healthy margin of 20.4%.<\/p>\n

Moreover, MDA updated its full-year guidance, expecting revenue between $1.57 billion and $1.63 billion and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $305 million to $320 million.<\/p>\n

Notably, MDA Space secured a $1.8 billion contract with EchoStar to design and manufacture over 100 MDA AURORA direct-to-device satellites for the world\u2019s first 3GPP 5G-compliant non-terrestrial network. With options potentially expanding the contract to $3.5 billion and over 200 satellites, this represents a cornerstone win in the growing direct-to-device market.<\/p>\n

The EchoStar contract marks MDA Space\u2019s fourth LEO constellation award in three years, cementing its leadership in next-generation satellite manufacturing. The company\u2019s Montreal facility expansion will enable production of up to 2 satellites daily by Q4, creating the world\u2019s largest high-volume manufacturing facility in its class.<\/p>\n

Analysts tracking the TSX stock forecast revenue to increase from $1.08 billion in 2024 to $2.32 billion in 2027. In this period, adjusted earnings are forecast to expand from $0.88 per share to $2.20 per share.<\/p>\n

Today, MDA stock is priced at 28 times forward earnings<\/a>, which is higher than its three-year average of 18 times. If the TSX stock is priced at 25 times earnings, which is a reasonable valuation, it could trade around $58 in early 2027, indicating an upside potential of over 35% from current levels.<\/p>\n

Is this TSX stock undervalued? <\/p>\n

Valued at a market cap of $12.5 billion, Propel Holdings (TSX:PRL<\/a>) is part of the financial lending segment, which is quite cyclical. Despite a challenging macroeconomic environment, Propel grew its revenue by 34% year over year to $143 million, while total originations funded increased by 35% to $194 million. Its adjusted net income rose 22% to $19.2 million as the company exceeded $50 million in monthly revenue for the first time in June.<\/p>\n

Propel explained that credit market tightening continues to create opportunities as traditional lenders become increasingly selective. According to Federal Reserve data, 23% of credit applications were rejected in June, the highest level since 2014, with rejection rates for consumers with credit scores below 680 reaching 57%. This environment drives higher-quality borrowers to Propel\u2019s platform while the company maintains strong credit performance.<\/p>\n

The UK operation, QuidMarket, exceeded expectations with 68% growth in total originations, while Canadian revenue grew 55% year-over-year. The company\u2019s Lending-as-a-Service program generated record revenues with over 60% sequential growth, positioning Propel to more than double this revenue stream in 2026.<\/p>\n

Analysts tracking PRL stock forecast adjusted earnings to grow from $1.64 per share in 2024 to $3.84 per share in 2027. If the TSX stock is priced at 13 times forward earnings, which is relatively cheap, it should double over the next 18 months.<\/p>\n

With strong market tailwinds, geographic diversification, and technology-driven efficiency gains, Propel appears well-positioned to capitalize on credit market disruption while maintaining disciplined growth.<\/p>\n","protected":false},"excerpt":{"rendered":"Investing in undervalued stocks growing at a steady pace is a proven strategy to generate market-beating returns for…\n","protected":false},"author":2,"featured_media":130923,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[71583,45,49,48,3109,15069,3112,3113,3114,3115,3116,3117,3118,3119,3120,71582,71581],"class_list":{"0":"post-130922","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-author-cap-araghunath","9":"tag-business","10":"tag-ca","11":"tag-canada","12":"tag-category-investing","13":"tag-category-tech-stocks","14":"tag-partner-feeds-business-insider","15":"tag-partner-feeds-flipboard","16":"tag-partner-feeds-koyfin","17":"tag-partner-feeds-msn","18":"tag-partner-feeds-newscred","19":"tag-partner-feeds-quote-media","20":"tag-partner-feeds-sharewise","21":"tag-partner-feeds-smart-format","22":"tag-partner-feeds-yahoo-ca","23":"tag-tickers_global-tsx-mda","24":"tag-tickers_global-tsx-prl"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/130922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=130922"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/130922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/130923"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=130922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=130922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=130922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}