Because the S&P/TSX Composite Index continues to commerce near its all-time highs, it’s changing into more and more tough to justify paying up for shares which have already surged over the previous few months. Whereas bargains are getting tougher to identify, there’s one wonderful progress inventory that appears actually undervalued proper now as its enterprise continues to develop strongly below the floor. That’s precisely the form of setup long-term buyers search for. It might not be extremely popular but, however this firm’s newest outcomes present actual momentum in income, earnings, and future contracts.

Let’s take a better have a look at this dirt-cheap TSX inventory, buying and selling far beneath its peak however nonetheless delivering spectacular progress — making it a perfect selection should you’re trying to put $3,000 to work at the moment.

This prime TSX inventory appears means too low-cost to disregard

Amongst all low-cost shares catching my eye, MDA House (TSX: MDA) checks all the proper containers for worth and momentum. Should you don’t understand it already, it’s a Canadian aerospace tech agency that’s steadily changing into a serious identify in world area infrastructure.

Regardless of latest robust earnings, MDA inventory has tumbled practically 54% from its 52-week excessive, now buying and selling at simply $22.26 per share, giving it a market cap of $2.8 billion. Whereas the corporate doesn’t at the moment pay a dividend, that shouldn’t be a dealbreaker for growth-focused buyers.

Momentum is powerful beneath the floor

Whereas MDA inventory has taken a success currently, the corporate’s financials are shifting in the proper route. Within the third quarter of 2025, MDA House posted a stable 45% YoY (year-over-year) soar in its whole income to $409.8 million. The surge was pushed primarily by greater volumes of labor in its satellite tv for pc techniques and robotics companies. These segments benefited from the ramp-up of the Telesat Lightspeed and Globalstar next-gen constellation applications.

Through the quarter, its adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) rose 14% YoY to $82.8 million, protecting its EBITDA margin wholesome at 20.2%. Because of this, the corporate additionally posted $46.1 million in adjusted quarterly internet revenue, reflecting a powerful 33% soar from a 12 months in the past.

Regardless of these positive factors, nevertheless, MDA’s working money stream slipped on a YoY foundation because of working capital swings. However general, the agency continues to generate stable money flows and has maintained a low internet debt-to-EBITDA ratio of simply 0.3, which provides it loads of room to develop with out taking over pointless threat.

Its long-term story stays intact

Notably, MDA House ended the most recent quarter with a backlog of $4.4 billion, giving it stable visibility into future income. That backlog is being actively transformed into income, which is a transparent signal of actual demand for its expertise and providers.

In July, it closed the acquisition of SatixFy Communications, strengthening its end-to-end satellite tv for pc techniques providing. On prime of that, the corporate not too long ago reaffirmed its full-year 2025 steerage final week, anticipating $1.57 billion to $1.63 billion in income and $305 million to $320 million in adjusted EBITDA. On the midpoint, that’s practically 48% annual income progress and 45% EBITDA progress YoY.

With an enormous progress pipeline, robust demand throughout all its core segments, and a valuation that appears disconnected from its efficiency, MDA inventory appears actually interesting to purchase on the dip proper now and maintain for the long run.