Highlights
- Focus on small-cap stocks in Canada with insider activity.
- Spotlight on market potential outside dominant tech sectors.
- Highlights of undervalued stocks with growth opportunities.
As we enter February 2025, the Canadian market faces challenges with persistent inflation and a robust labor market, prompting the Bank of Canada to weigh potential downside risks to growth. Amid these conditions, small-cap stocks on the Toronto Stock Exchange (TSX) are capturing interest for their promising value opportunities, particularly as shifts in market leadership test the dominance of technology stocks and accelerate earnings growth outside major U.S. indices.
Within this dynamic landscape, pinpointing small-cap stocks backed by solid fundamentals and insider activity becomes essential for those looking to explore undervalued opportunities in Canada's vibrant market. Here's a glance at some interesting small-cap stocks with notable insider transactions on the TSX:
Highlighted Stocks
Badger Infrastructure Solutions (TSX:BDGI)
Badger Infrastructure Solutions, known for its non-destructive excavating services, is attracting attention due to its growth prospects and insider confidence. With a projected earnings growth of 38% annually, despite reliance on external borrowing, the company seems poised for growth. The recent strategic direction set by newly appointed board member George Williams, who brings extensive utility industry experience, will likely play a role in the company’s future. A C$0.18 per share quarterly dividend highlights a commitment to shareholder value.
Exchange Income (TSX:EIF)
Exchange Income, operating mainly in aerospace, aviation, and manufacturing sectors, is also gaining recognition for its potential, marked by recent insider purchases. Shareholders benefit from consistent monthly dividends of C$0.22 per share, reflecting stability and focus on shareholder value. The company projects an annual earnings growth of 25%, indicating promising prospects despite financial hurdles.
Evertz Technologies (TSX:ET)
Evertz Technologies specializes in providing television broadcast equipment and is making waves with strategic enhancements, including the integration of advanced intoPIX technology. This integration promises ultra-low latency and efficient compression for professional applications. Despite a past decline in sales and net income, the company remains committed to shareholder value through dividends and share repurchases. Earnings are expected to grow at 8.16% annually, presenting potential growth within its niche.