Some Canadian shares fall for a motive. Others dip as a result of the market will get spooked, even whereas the underlying enterprise retains delivering. That’s the place actual alternative lies, and proper now, two high quality Canadian firms are buying and selling close to 52-week lows regardless of sturdy long-term prospects. So let’s dig in.
IVN
Ivanhoe Mines (TSX:IVN) had a turbulent 12 months, with its share value sliding greater than 25% over the previous 12 months. Operational hiccoughs at its flagship Kamoa-Kakula copper mine within the Democratic Republic of the Congo, most notably seismic exercise in Might, quickly slowed manufacturing. Nonetheless, the Canadian inventory reported Q2 2025 revenue of $35 million and adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) of $123 million, with manufacturing now ramping again up. The smelter at Kamoa-Kakula, the most important in Africa, is on monitor to begin up in September. This might cut back prices and enhance margins as soon as totally operational.
Ivanhoe additionally has a number of progress drivers on deck. The Platreef mission in South Africa is about to supply platinum, palladium, rhodium, nickel, gold, and copper beginning subsequent quarter, whereas the Kipushi zinc mine is delivering document output following debottlenecking. These property might assist diversify income and decrease threat tied to copper costs. The corporate is well-capitalized with $672 million in money, giving it flexibility to navigate any additional disruptions. Dangers stay as working in rising markets brings political and logistical challenges. But Ivanhoe’s useful resource base and enlargement pipeline give it long-term upside that short-term volatility can masks.
GIB.A
CGI (TSX:GIB.A), in the meantime, has been quietly constructing a world IT companies empire. Its shares are down about 9% from final 12 months’s highs, at the same time as Q3 fiscal 2025 outcomes confirmed income climbing 11.4% year-over-year to $4.1 billion. The Canadian inventory posted adjusted earnings per share (EPS) of $2.10, up practically 10% from a 12 months in the past, with a wholesome book-to-bill ratio above 1.0. CGI’s backlog now sits at a hefty $30.6 billion, offering sturdy income visibility.
What makes CGI particularly fascinating proper now could be its momentum in synthetic intelligence (AI) consulting and integration. Administration highlighted sturdy AI-related wins throughout industries final quarter, positioning the corporate as a trusted transformation accomplice for enterprise purchasers. With a ahead P/E round 15, the Canadian inventory isn’t costly for a enterprise that has persistently generated double-digit returns on fairness and strong money stream. The small dividend isn’t the draw; it’s the compounding energy of reinvested income and share buybacks. The primary watch merchandise right here is consumer spending. If the economic system slows, mission deferrals might trim near-term progress. However CGI’s diversified base and recurring work make it extra resilient than most within the sector.
Backside line
Each Ivanhoe Mines and CGI are buying and selling near their 52-week lows, however for very totally different causes. Ivanhoe’s weak spot is tied to operational setbacks and commodity market jitters, whereas CGI’s dip appears extra like a pause after years of regular positive factors. For affected person buyers, the mixture of near-term catalysts and discounted entry factors might set the stage for engaging returns as soon as sentiment shifts. In different phrases, these aren’t damaged companies, however quickly out of favour. And within the inventory market, that’s usually the perfect time to purchase.
