As earnings season winds down, investors should start eyeing undervalued stocks that could deliver surprises in the next reporting cycle. Three Canadian companies stand out as promising picks for pre-earnings season investments.
Magna International (TSX:MG), a leading global auto supplier, reported strong first-quarter 2026 results despite industry challenges like tariffs and uncertain EV demand. Sales rose 3% to US$10.4 billion, and adjusted earnings per share (EPS) beat expectations at US$1.38. While full-year sales guidance was lowered, Magna's robust free cash flow and dividend yield make it an attractive undervalued play.
Nutrien (TSX:NTR), the world's largest potash producer, saw significant earnings growth in Q1 2026 due to strong fertilizer demand and higher prices. Net income surged to US$139 million, with sales increases across potash, nitrogen, and phosphate segments. Despite solid performance, the stock trades at a reasonable 14.6 times earnings with a 3% dividend yield.
Teck Resources (TSX:TECK.B), a major base-metals company, reported a strong first quarter with profit more than doubling year-over-year. The company's focus on copper positions it well for growing electrification demand. Teck trades at 23.4 times earnings, offering potential upside if copper prices remain strong.