Cheap Canadian Stocks: 2 Top Picks to Buy This Week

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When it comes to finding cheap Canadian stocks today, they are few and far between. Sure, some are scattered from industry to industry, but many of these come with a lot of risks.

So if you’re an investor that likes to look for value, it can be difficult to invest in this environment. Many of the top stocks are trading at all-time highs, while the cheapest stocks are cheap for a reason.

But there’s one industry for long-term investors that offers incredible value today. Gold stocks continue to trade well undervalued, despite the fact that gold prices haven’t sold off all that much this year.

While there has certainly been some gold sell-off since the pandemic, it continues to trade well above where it was in 2019.

Yet many of these Canadian gold stocks are extremely cheap, despite being profitable at these prices.

There are still many reasons why gold prices can rally too, or at least sustain these higher prices going forward. Massive amounts of stimulus have added a tonne of capital to economies, and already we’ve seen a significant increase in inflation.

So while gold stocks should never be a huge portion of your portfolio, they can play an important role. And there might not be a better time to buy these cheap Canadian stocks than today.

So if you’re looking for the most bang for your buck, here are two of the best gold stocks to buy now.

A top gold stock for growth investors

If you are more of a growth investor, one of the top Canadian stocks to consider today is Equinox Gold (TSX:EQX).

Equinox is one of the top Canadian growth stocks in the gold sector and extremely cheap for investors. Now, trading right around its 52-week low, it’s the perfect time to take a position in a stock like Equinox.

Not only has it been rapidly growing its production in the few short years it has been in operation, but Equinox has also made attractive acquisitions that have helped the company grow even faster.

So it’s not just cheap, but it also offers a tonne of long-term growth potential as it looks to nearly double its production over the coming years, which is why it’s one of the top Canadian stocks to buy now.

While the stock currently trades around $8.50 a share today, the average target price from the eight analysts covering it is $14, which is roughly 70% upside.

Plus, as I mentioned before, it continues to offer some of the best growth potential of any Canadian stock, giving investors a tonne of opportunity over the long term.

One of the cheapest Canadian stocks you can buy

Another high-quality stock offering an incredible opportunity for investors today is B2Gold (TSX:BTO)(NYSEMKT:BTG).

While B2Gold may not offer as much long-term growth potential as Equinox, the top Canadian gold stock is cheap. In fact, it is even cheaper than Equinox and pays an attractive dividend.

B2Gold is currently trading below $5 a share, yet its average target price from the five analysts covering it is about $9.25 for a roughly 90% upside.

That’s an incredible discount, especially for a stock that can offer a safe haven for your capital as the fourth wave of the pandemic starts to hit.

And not only can you buy this top Canadian stock today for dirt-cheap, but it also pays a more than 4% dividend while you wait for it to recover.

So if you’re looking to find the best deals on the market, B2Gold is definitely one of the top stocks to consider.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa owns shares of B2GOLD CORP. The Motley Fool has no position in any of the stocks mentioned.