You don’t at all times want to attend for a market crash to seek out shares buying and selling under their honest worth. Generally, the chance lies in plain sight, hidden in falling charts or misunderstood earnings stories. In 2025, regardless of the TSX Composite hitting new peaks, there are nonetheless a couple of basically robust firms flying below the radar. Their present share costs don’t fairly replicate their long-term development potential. And for affected person traders, that may very well be a possibility.

On this article, I’ll spotlight two undervalued TSX shares that I imagine look enticing to purchase with $3,000 in the present day and maintain for the long run.

First up is West Fraser Timber (TSX:WFG), a Canadian wooden merchandise large that’s at the moment buying and selling effectively under its potential, for my part. It’s certainly one of North America’s largest wooden merchandise firms, producing a number of merchandise, together with lumber, plywood, pulp, and paper throughout its 50-plus services in Canada, the U.S., and Europe.

Regardless of the broader market rally, its inventory has seen a 33% draw back correction to date in 2025 and at the moment trades at $86.58 per share. Consequently, it now has a market cap of about $6.8 billion and gives a 2.1% annualized dividend yield.

Weak housing demand and new tariffs on Canadian lumber have affected its monetary development in current quarters, which may very well be the principle purpose why its share costs have dived. Within the third quarter of 2025, the corporate reported gross sales of US$1.3 billion and a web lack of US$204 million. The slowdown in U.S. housing begins and elevated mortgage charges squeezed pricing throughout lumber and oriented strand board (OSB), two of its core segments.

As near-term demand for its merchandise stays muted, West Fraser plans to cut back the higher finish of its 2025 lumber cargo goal and is trimming prices whereas preserving flexibility.

Regardless of these non permanent challenges, falling rates of interest within the U.S. are already enhancing housing affordability, which can revive demand for lumber and OSB. In the meantime, the corporate additionally expects steady development in the usage of mass timber for industrial and business buildings.

With its robust steadiness sheet, diversified manufacturing, and measured capital spending plan, West Fraser has the potential to recuperate sharply as soon as housing exercise stabilizes. That’s why the present weak point in WFG inventory may very well be a pretty entry level for long-term traders.

Air Canada inventory

The subsequent identify on the listing, Air Canada (TSX:AC), comes from a really totally different sector, however its undervaluation story is analogous. With 18% year-to-date losses, AC inventory at the moment trades at $18.12 per share, valuing the corporate at round $5.4 billion.

Air Canada’s current outcomes counsel that the airline is working much better than its valuation displays. Within the second quarter, the corporate reported a 2% year-over-year improve in its income to $5.63 billion. Through the quarter, its adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) additionally reached $909 million, representing a wholesome 16.1% margin. Regardless of a small improve in income, robust demand for premium journey, cargo, and trip providers supported the airline firm’s earnings within the newest quarter.

Curiously, Air Canada expects to generate $30 billion in annual income and obtain an adjusted EBITDA margin of 17% or increased by 2028. It’s additionally concentrating on a free money circulation margin of round 5%, signalling the potential for strong long-term profitability.

Lately, the Canadian flag service’s development technique has centred on diversifying its earnings past passenger fares. Robust efficiency from Air Canada Cargo, Aeroplan, and Air Canada Holidays has helped cushion the affect of unstable gas prices and international journey uncertainties.

As air journey continues to recuperate amid declining rates of interest and improved client spending, Air Canada’s present valuation may seem like a discount a couple of years down the street.