As February ended, Reuters reported that Canada’s economy showed unexpected strength in the fourth quarter of 2024, with annual growth of 2.6%. Household expenditure, which accounts for more than half of GDP, particularly increased by 1.4% in the fourth quarter. Business investments, which had been stagnant over the past 11 quarters, ultimately achieved positive momentum, with a 0.7% growth in the fourth quarter. This was driven by a 4.2% surge in investments in machinery and equipment. On a per capita basis, Real GDP rose 0.2% in the fourth quarter. This represents the second increase in the last 11 quarters. However, recently amid concerns over a US-led trade war, Reuters polls from April show the increased risk of a Canada recession. Economists have now reduced Canada’s growth forecast to 1.1% from 1.7% and 1.6% for the next 1.1%, respectively. All economists surveyed agreed that US tariffs had a negative impact on business sentiment. Inflation is projected to average 2.4% in 2025 and 2.1% in 2026.
On April 7th, Steve Odland, president and CEO of the conference committee, joined CNBC’s special report to discuss the impact of tariff-driven uncertainty on CEO sentiment. Steve Odland emphasized that CEOs need to clarify numbers, costs and game rules to plan effectively. The CEO felt somewhat positive about the general direction of the economy, but the introduction of tariffs disrupt everything. Odland described the situation as confusing as many people expected to target countries like China rather than close allies like Canada or Mexico. The move was a shock to the system, raising questions about whether tariffs are a temporary negotiation tactic or a long-term policy change.
In a conversation about the expectation that a particular country would come to the negotiation table, Odland responded that some countries, including Canada and Mexico, are likely to prioritize for quick resolution due to their importance. This is due to the integrated nature of North American supply chains, especially in industries such as automobile manufacturing. The conversation suggests that if we can reach corporate transactions with Canada, Mexico, China, Vietnam and Taiwan, the tariffs will ideally be zero.
First, I compiled a list of inexpensive Canadian stocks with forward P/E ratios under 15 years of age using the Finviz Stock Screener. We then selected 10 shares with a high upward potential of over 35%. Stocks are ranked in ascending order of their likelihood of gain. Also added hedge fund sentiment to each stock as of Q4 2024, raised from Insider Monkey’s database.
Note: All data was sourced on April 21st.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (sFor more information about EE, click here).
Is Rogers Communications Inc. (NYSE: RCI) the most undervalued Canadian stock, according to Wall Street analysts?
Technicians working on mobile devices showcase the company’s wireless internet access capabilities.
As of April 21st, forward P/E ratio: 7.4
Number of hedge fund holders: 17
Average upward likelihood as of April 21: 45.62%
Rogers Communications Inc. (NYSE: RCI) is a communications and media company. It works in three segments: wireless, cable and media. We offer a wide range of products and services, including mobile internet access, wireless voice and enhanced voice, device finance, IoT solutions, Internet & WIFI services, security, and even on-demand television.
In 2024, Rogers attracted more subscribers than its competitors, adding 623,000 wireless and internet net additions. Especially within wireless, the company has led the Canadian wireless sector for the third consecutive year, adding 512,000 net postpaid and prepaid phone subscribers per year.
In the fourth quarter of 2024, wireless services revenues increased by 2% year-on-year. Rogers Communications Inc. (NYSE: RCI) added 95,000 Net Postpaid and Prepaid phone subscribers in the fourth quarter. This was lower than last year due to the small market size that stems from government policies, but the majority of these new subscribers were on Rogers’ premium 5G brand. The 2025 outlook reflects overall single-digit growth in total service revenue.
Overall, RCI 8th place It’s on the list of the most undervalued Canadian stocks, according to Wall Street analysts. While acknowledging the growth potential of RCI, our belief lies in the belief that AI stocks offer higher returns and are extremely promising to do so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than RCI but are trading below 5 times the revenue, check out our report on this Cheapest AI stocks.
