Best Value Stocks this January 2026 in Canada

Canadian National Railway (CNR) stands out as an attractive option for value investors, offering a dividend yield of 2.62% alongside a history of consistent growth metrics. Despite recent one and five-year returns of -4.82% and -5.28%, respectively, analysts maintain a favorable outlook, with Citigroup and CIBC rating it as a "Buy" and "Outperform," respectively. This positions CNR as a solid long-term hold, particularly for those who acquired shares at or below the $130 mark, reinforcing its reputation as a financially healthy company.

CNR is considered a good long-term hold, especially if purchased below $130, which many analysts view as a favorable entry point.

CNR has a strong dividend growth record, currently offering a dividend yield of about 2.7%, which equates to $3.55 per share annually.

Alimentation Couche-Tard (ATD) stands out as a consumer staple retailer with a promising growth trajectory, driven by its food sales and strategic acquisitions. Currently trading at approximately C$74.08, it offers a target price of C$85.00, indicating a potential upside of about 14.74%. With a 1.09% dividend yield and strong five-year returns of 81.89%, ATD remains a compelling choice for investors seeking solid performance in a stable sector.

ATD-A is trading near the upper end of its 52-week range but is slightly lagging behind the S&P 500 Index, which is near a new high.

With a target price of C$85.00, ATD stock has a potential upside of about 14.74% from its current price of C$74.08, supported by multiple 'buy' ratings from analysts.

The average 12-month price target for ATD is C$86.00, based on estimates from six analysts, with a high of C$91.00 and a low of C$79.00.

Canadian Natural Resources (CNQ) stands out as a leading oil and gas producer, drawing attention in the energy sector thanks to its high trading volume. With a solid dividend yield of 5.17% and a remarkable five-year return of 168.32%, it positions itself as an attractive option for investors focused on reliable income amidst fluctuating market conditions. Analysts maintain a positive outlook, with ratings from Goldman Sachs and RBC Capital affirming a "Buy" and "Outperform" stance, respectively.

CNQ has shown strong historical growth, with an average Earnings Per Share (EPS) increase of 16.79% per year and a revenue growth of 8.06% in the past year.

In the past 12 months, CNQ has underperformed the S&P TSX Composite Index, with a return of -6% versus the index's +29% growth.

CNQ's low valuation is attributed to its long-life, low-decline oil sands operations, which have predictable production profiles and some of the industry's lowest operating costs.

Telus (T) stands out as a stable investment option in the telecom sector, boasting an impressive dividend yield of 9.39%. Despite facing a 5.89% dip over the past year and a 29.03% decline over the past five years, the company is projected to achieve over 10% annual free cash flow growth through 2028, highlighting its potential for recovery. Analysts remain mixed on the stock, with eight recommending a buy and others suggesting a hold or sell, indicating a cautious but optimistic outlook as Telus continues to focus on its dividend growth strategy.

Eight analysts recommend buying TELUS stock, two suggest selling, and seven recommend holding.

TELUS reached an all-time high closing price of $21.59 on April 8, 2022. Its current share price is 25.3% below the 52-week high of $16.74 and 6.1% above the 52-week low of $12.54.

TELUS expects free cash flow (FCF) growth of over 10% annually through 2028, projecting FCF of $2.15 billion in 2025 and $2.4 billion in 2026.

TELUS is confident in achieving a minimum 10% annual growth rate in free cash flow through 2028, which supports its deleveraging strategy.