Undiscovered Gems In Canada 3 Small Caps With Strong Potential
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The recent rate cut by the Federal Reserve, coupled with similar signals from the Bank of Canada, has set a new tone for the market, boosting investor sentiment and pushing key indices like the S&P 500 and TSX to new highs. In this favorable environment for equities, small-cap stocks with solid fundamentals and growth potential stand out as particularly attractive opportunities.
Top 10 Undiscovered Gems With Strong Fundamentals In Canada
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Mandalay Resources | 11.86% | 9.48% | 37.58% | ★★★★★★ |
| TWC Enterprises | 6.74% | 10.99% | 25.68% | ★★★★★★ |
| Reconnaissance Energy Africa | NA | 15.28% | 7.58% | ★★★★★★ |
| Taiga Building Products | NA | 6.05% | 10.50% | ★★★★★★ |
| Tornado Global Hydrovacs | 14.62% | 24.52% | 64.90% | ★★★★★☆ |
| Grown Rogue International | 24.92% | 43.35% | 67.95% | ★★★★★☆ |
| Mako Mining | 22.90% | 38.12% | 54.79% | ★★★★★☆ |
| Pizza Pizza Royalty | 15.66% | 3.64% | 3.95% | ★★★★☆☆ |
| Queen's Road Capital Investment | 7.20% | 22.14% | 22.20% | ★★★★☆☆ |
| Genesis Land Development | 53.32% | 25.58% | 47.05% | ★★★★☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
North West
Simply Wall St Value Rating: ★★★★★★
Overview: The North West Company Inc., with a market cap of CA$2.46 billion, operates through its subsidiaries to retail food and everyday products and services in rural communities and urban neighborhood markets in northern Canada, rural Alaska, the South Pacific, and the Caribbean.
Operations: North West generates revenue primarily from retailing food and everyday products and services, totaling CA$2.52 billion. The company's net profit margin stands at 3.02%.
North West's earnings grew 9.5% over the past year, outpacing the Consumer Retailing industry’s -11.7%. The company trades at 44.4% below its estimated fair value and has reduced its debt to equity ratio from 96.7% to 43.2% in five years, with a net debt to equity ratio of 31.4%. Recent Q2 results showed sales of CAD 646 million and net income of CAD 35 million, with a quarterly dividend increase to CAD 0.40 per share announced for October.
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Get an in-depth perspective on North West's performance by reading our health report here.
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Understand North West's track record by examining our Past report.
Silvercorp Metals
Simply Wall St Value Rating: ★★★★★★
Overview: Silvercorp Metals Inc., with a market cap of CA$1.31 billion, engages in the acquisition, exploration, development, and mining of mineral properties through its subsidiaries.
Operations: Silvercorp Metals generates revenue primarily from its mining operations in Guangdong ($27.35 million) and Henan Luoning ($200 million).