TFSA (Tax-Free Financial savings Account) buyers are lucky to get an extra $7,000 of contribution house in 2024. When you have the money and are in search of some undervalued TSX inventory concepts, listed below are 4 shares in several sectors to contemplate including in February.

A TSX software program inventory

Enghouse Programs (TSX:ENGH) has had a tough go over the previous 5 years. Its inventory soared 100% in the course of the pandemic. It has now pulled again to the purpose the place it solely has a 6% inventory acquire over that interval.

Now, complete returns usually are not totally that dangerous. The corporate had an enormous surge in demand and earnings by way of the pandemic. It paid a particular $1.50-per-share dividend on high of the $2.70 of base dividends it has paid since 2020.

The corporate is sitting with $230 million of money and no debt. It has made a number of small acquisitions lately, however it’s primed to essentially speed up its mergers and acquisition technique.

It’s buying and selling on the low finish of its historic valuation vary. This TSX inventory might actually re-rate if it may begin placing its money pile to work. It yields a 2.3% dividend when you wait.

A diversified inventory

One other TSX inventory that might see a possible re-rating in 2024 is Calian Group (TSX:CGY). Over the previous 5 years, the corporate has reaccelerated its progress profile.

The corporate has grown revenues and EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) by respective 17% and 24.5% compounded annual progress charges (CAGRs).

It operates a diversified combine of companies centered on satcom, coaching/simulation, healthcare, and cybersecurity and IT. This helps offset volatility throughout its portfolio and offers a number of facets for natural and acquisition progress.

The corporate had a slight misstep final yr that noticed the inventory fall significantly. Nonetheless, the corporate is positioned for double-digit progress forward. The market hasn’t acknowledged it, and this TSX inventory is buying and selling at an reasonably priced 12 occasions ahead incomes immediately.

A beaten-up retail inventory

Whereas all these picks are valuation performs, BRP (TSX:DOO) is the contrarian decide. Just like the Enghouse, BRP noticed a surge in demand as rates of interest got here crashing down in the course of the pandemic. It helped propel document income and earnings.

Demand has slowed, with rates of interest quickly rising. The corporate needed to revise its outlook a number of occasions. Whereas enterprise has slowed, it has slowed for the entire section. Regardless of this, BRP has persistently been taking market share from its main rivals.

2024 is likely to be a unstable yr, however 2025 might see this inventory recuperate very properly. The corporate will seemingly take its beaten-down valuation to purchase again lots of inventory. Because of this, earnings might significantly surge as soon as demand normalizes once more.

A TSX actual property inventory

A closing inventory decide for extra of an earnings play is BSR Actual Property Funding Belief (TSX:HOM.U). BSR operates a really high-quality portfolio of garden-style multi-family properties in Texas, Arkansas, and Oklahoma.

Like the opposite shares above, this TSX actual property inventory noticed a surge in demand as folks flocked to the southern sunbelt states over the pandemic. Its properties are in a few of the highest financial and inhabitants progress areas within the U.S.

The REIT could be very well-positioned in the long run. It has a conservative stability sheet, superb, well-located belongings, and a proficient administration workforce. This TSX inventory earns a 4.4% distribution yield. If rates of interest reasonable down, this inventory might get pleasure from a considerable restoration in 2024.