Though the TSX Composite Index is setting new all-time highs this 12 months, many high-quality Canadian shares have didn’t benefit from the rally. Mining, financials, and client staples have all delivered robust efficiency in 2025.

Nevertheless, many elements of the Index have solely seen modest positive factors. That is the place the diamonds within the tough could be discovered. In case you are searching for some undervalued Canadian inventory concepts with substantial potential upside, listed here are three to contemplate proper now.

A fintech progress inventory down in 2025

Propel Holdings (TSX:PRL) inventory is down 10.6% 12 months so far. It’s buying and selling with a ahead price-to-earnings ratio of solely 9 proper now.

It additionally has a sexy 2.45% dividend yield. Propel has elevated its annual dividend per share seven occasions prior to now three years. In that interval, its dividend has almost doubled!

Propel supplies a specialised lending platform to the non-prime market. The corporate has seen its five-year revenues rise by a +40% compounded annual progress charge (CAGR) and earnings per share (EPS) by a 70% CAGR. 12 months so far, adjusted EPS elevated 19% to $1.42.

With the economic system weakening, banks are tightening their lending. That ought to proceed to ship clients to Propel. Its current U.Okay. acquisition has been a near-term drag on earnings. Nevertheless, it’ll present long-term progress alternatives in Europe because it offers Propel a foothold within the area.

A Canadian trucking inventory down quickly

TFI Worldwide (TSX:TFII) is one other Canadian inventory that has sloped within the flawed route this 12 months. Its inventory is down 33% this 12 months. Operational points, a slowing economic system, and a freight recession all contributed to a critical decline in earnings.

But, that is an intriguing time so as to add the inventory. TFI has a long-term document of making substantial shareholder worth. Its inventory is up 450% prior to now 10 years. This is because of its low-cost working mannequin and a sensible serial acquisition technique.

In a standard surroundings, this inventory ought to hit near $8 per share in earnings. That may put the inventory in a mid-teens price-to-earnings vary. With the inventory depressed, administration has famous that it’s targeted on shopping for again shares quite than making acquisitions.

The corporate continues to be producing robust free money flows, so it definitely has the capability to take action. It implies that out of the dangerous cycle, its earnings (and the inventory) might actually get well shortly. With a 1.9% dividend yield proper now, you is usually a little affected person for the turnaround to occur.

A Canadian waste inventory set to rerate upward

Safe Waste Infrastructure (TSX:SES) is an undervalued Canadian inventory that would nonetheless have extra upside. Its inventory is simply up 4.4% this 12 months.

This firm is trash. Effectively, kind of. Throughout Western Canada, it processes a very good majority of the waste produced by the power and industrial sectors. It is usually increasing into metallic recycling. Trump’s tariff agenda has damage this phase. It has quickly slowed earnings. Nevertheless, the corporate nonetheless initiatives excessive single-digit progress this 12 months.

Safe has a really robust aggressive placement in Western Canada. In lots of situations, it’s the solely waste supplier in its working areas. That limits competitors and maintains robust pricing energy.

Regardless of its resilient (and rising) enterprise, Safe trades at a big low cost to different waste friends. If it may possibly execute its progress plans, it needs to be due for a valuation re-rating. It pays a 2.4% dividend yield whilst you wait.