The volatility associated with the equity markets provides an opportunity for investors to buy quality stocks at a lower multiple and enjoy robust returns on the rebound. Here are two top TSX stocks that are fundamentally strong while trading at a discount to consensus price target estimates.

Cameco Corp stock

Valued at US$20.6 billion by market cap, Cameco (TSX:CCO) has two primary business segments that include:

• Uranium: It is involved in the exploration for mining, milling, purchase, and sale of uranium concentrate.
• Fuel Services: It deals with the refining, conversion and fabrication of uranium concentrate.

Similar to other commodity stocks, Cameco is quite volatile and has more than tripled investor returns in the last decade. However, it also trades 14% below all-time highs as uranium prices have cooled off in recent months.

Cameco reported an 8% decline in sales in the first quarter (Q1) of 2024 while reporting a net loss of US$7 million, compared to a net income of US$119 million in the year-ago period. Its losses were attributed to Camecoâs investment in Westinghouse Electric, where it owns a 49% stake. Westinghouse is a nuclear services company and reported a net loss in Q1, which offset a 34% earnings growth in Camecoâs core uranium segment.

Cameco emphasized its 2204 production plan is on track as it expects to end the year with sales between US$2.8 billion and US$3 billion, higher than US$2.6 billion last year. Wall Street expects adjusted earnings for the uranium giant to expand from US$0.57 per share in 2023 to US$0.79 per share in 2024 and US$1.33 per share in 2025.

In fact, the Canadian company is forecast to end 2028 with earnings per share of US$6. If the stock is priced at 25 times forward earnings, it should trade around US$150, higher than the current price of US$45.

Another key driver for Cameco is the upcoming ban on uranium imports from Russia, which will begin next month. Russia currently supplies 24% of the uranium required by the U.S. as the worldâs largest economy imports a bulk of the uranium fuel to power nuclear reactors.

BRP stock

Down 25% from record highs, BRP (TSX:DOO) has already returned shareholders lose to 250% in the last 10 years. BRP is among the leading manufacturers of power sports products, propulsion systems, and boats. Its brands include Ski-Doo and Lynx snowmobiles, Can-Am on and off-road vehicles, and Quintrex boats.

In fiscal Q1 of 2025 (which ended in April), BRP reported revenue of $2.03 billion, compared to $2.4 billion in the year-ago period. Lower consumer spending and an inflationary environment have impacted BRP's revenue and profit margins, as gross margins declined by more than two percentage points to 23.6% in Q1.

Analysts expect sales to fall by 16% to $8.73 billion and earnings to narrow by 42% to $6.46 per share in fiscal 2025. However, revenue growth is forecast at 9.3%, while earnings growth estimates are much higher at 37%.

According to estimates, BRPâs earnings might touch $21 per share in fiscal 2029. So, if the stock is priced at 10 times forward earnings, it should trade at $210 in July 2028, up from the current trading price of $94.

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