Every stock market correction allows long-term investors to buy and hold quality companies trading at a discount. In this article, I have identified two top Canadian value stocks you can buy today and hold for the next 20 years.
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Is this undervalued TSX stock a good buy right now?
Valued at a market cap of $1.25 billion, Docebo (TSX: DCBO) provides a cloud-based learning management system for training internal and external workforces. The TSX tech stock is down over 40% from all-time highs, allowing you to gain exposure to a quality entity at a discount.
While Docebo’s growth rate is decelerating, it continues to expand its profit margins. Given consensus estimates, it is on track to increase revenue from US$217 million in 2024 to US$303.77 million in 2027. In this period, EBITDA (earnings before interest, tax, depreciation, and amortization) margins are forecast to increase from 9% to 23.9%.
Comparatively, free cash flow is expected to improve from US$28 million in 2024 to US$84.5 million in 2027. If Docebo stock is priced at 30 times trailing FCF, it will almost double from current levels over the next five years.
During its fourth-quarter (Q4) earnings call, Docebo highlighted its strategic evolution toward becoming an artificial intelligence (AI)-first learning platform. Chief Executive Officer (CEO) Alessio Artuffo emphasized Docebo’s vision to transform from “the strongest enterprise LMS” (learning management system) into an AI-powered learning ecosystem that delivers hyper-personalized, automated, and measurable learning experiences.
Docebo reported encouraging adoption of its recently launched modules, with +15% attachment rates for its new AI Authoring, Advanced Analytics, and Communities products. These offerings are part of Docebo’s broader strategy to address the changing workforce landscape, where an estimated 40% of skills will dramatically change over the next five years.
Docebo is making significant inroads with enterprise clients, increasing its new customer ACV (average contract value) from US$70,000 to US$83,000. It also reported a 200% increase in long-term contracts of five years or greater, demonstrating strong customer commitment.
Leadership highlighted the development of Agentic AI capabilities, allowing customers to automate complex tasks within and across platforms. Artuffo described agents as “the new integration framework” and “the new UX” that will transform how learning and development professionals work.
Is LULU stock a good buy right now?
Lululemon (NASDAQ: LULU) is another Canadian-based company that will trade at a lower multiple in 2025. According to consensus estimates, Lululemon is forecast to report adjusted earnings per share of US$24.88 in fiscal 2030 (ending in January), up from US$14.64 per share in fiscal 2025.
Lululemon’s Q4 results exceeded its guidance, with revenue rising 8%, excluding the 53rd week. The athleisure giant is projecting modest growth in 2025 despite a challenging macroeconomic environment that has reduced consumer traffic, particularly in the U.S.
CEO Calvin McDonald highlighted product innovation as a key focus, emphasizing that customers are responding positively to new product launches like Glow Up, Daydrift, and Be Calm. These innovations and upcoming releases, including a no-front-seam Align legging to celebrate the franchise’s 10th anniversary, are driving stronger purchase metrics among visiting customers.
Lululemon is ramping up community-based brand activations, particularly in the U.S., where it sees significant opportunity to grow brand awareness, which remains in the 30% range for unaided awareness.
Recent initiatives include partnerships with events like the Rock and Roll Marathon, the opening of a Glow Up Studio in New York, and the launch of “Membership Madness” for its 28 million members. The company has also expanded its ambassador roster to include high-profile athletes like Lewis Hamilton and Francis Tiafoe to help reach new audiences.
Lululemon’s international expansion continues with a strong performance in China, where revenue increased 38% in Q4. In 2025, Lululemon plans to open 40-45 new stores globally, with the majority in international markets, particularly China.
