2025 was an excellent 12 months for the TSX Index. But, many Canadian progress shares are down and out this 12 months. Loads of good high quality companies are buying and selling at very engaging valuations. If I had $4,000, listed here are 4 low-cost Canadian shares I’d purchase for 2026.
A prime Canadian defence inventory
Calian Group (TSX:CGY) has underperformed expectations for a few years. This $650 million market cap firm solely trades with a ahead price-to-earnings ratio of 13 proper now.
The excellent news is its prospects are turning round. Calian is a vital provider of healthcare, coaching companies, and satcom {hardware} to the Canadian army. It has likewise develop into an vital supplier to many NATO member nations.
With defence spending set to rise over the approaching 5 years, Calian ought to be a serious beneficiary. It’s already forecasting double-digit progress for 2026. On a growth-to-value foundation, it’s exhausting to discover a higher inventory in Canada.
A prime aerospace inventory
Firan Applied sciences (TSX:FTG) is one other small-cap inventory that may very well be an excellent purchase for 2026. This Canadian inventory trades with a price-to-free money movement ratio of 15.5. Whereas it’s not low-cost prefer it was this time final 12 months (its inventory is up 50% in that point), Firan inventory nonetheless trades at a fabric low cost to related aerospace elements suppliers within the U.S.
Firan supplies circuit boards, cockpit elements, and aftermarket {hardware} elements. Demand for brand new plane is close to insatiable. The highest plane OEMs can’t produce them rapidly sufficient.
This supplies a decade-long tailwind for Firan. Its elements are utilized in an array of business and defence plane. The corporate has a powerful stability sheet and generates good free money flows. This Canadian inventory is a stable choose for 2026 and past.
A number one world engineering inventory
WSP International (TSX:WSP) inventory is down 10% prior to now six months and down 4% this 12 months. Its buying and selling near its lowest enterprise worth (EV)-to-earnings earlier than curiosity, tax, depreciation, and amortization (EBITDA) ratio prior to now 5 years.
But, WSP has been delivering nice ends in 2025. 12 months thus far, revenues are up 17%, and EBITDA is up 20.4%!
WSP simply introduced a considerable acquisition that may place it as the most important engineering and advisory agency in the US. After synergies are realized, the deal might present excessive single-digit accretion. If this Canadian inventory can proceed to execute its robust acquisition and natural progress plan, there might nonetheless be loads of upside in 2026.
A Canadian small-cap software program inventory
VitalHub (TSX:VHI) inventory is down 20% this 12 months. But, its monetary efficiency has been superb. 12 months thus far, revenues are up 62%, and EBITDA rose 43%.
VitalHub supplies essential software program to the healthcare sector. It operates in Canada, the U.Ok., the Center East, and Australia.
With over 20 acquisitions underneath its belt, it has used a software program consolidation technique to develop by geography and repair base. It has $123 million of money on the stability sheet, so it has ample alternatives to continue to grow by acquisition.
At face worth, this Canadian inventory shouldn’t be low-cost. Nevertheless, with an EV/EBITDA ratio of 13, it’s buying and selling at its lowest worth in three years. If it will possibly well deploy its money, there may very well be important progress in 2026 that may assist its present worth.
