While most Canadian tech stocks have surged sharply with the TSX rally over the last few weeks, a few stocks haven’t joined in — at least not yet. Despite their strong fundamentals or promising long-term growth prospects, some tech companies remain well below their recent highs. But that might be exactly what makes them compelling right now.
In this article, let’s take a look at three Canadian tech stocks still trading at steep discounts and why their comeback may be just around the corner.
Source: Getty Images
Lightspeed stock
The first stock on the list is Lightspeed Commerce (TSX:LSPD), a Montreal-based tech firm that hasn’t yet joined the broader tech rally but could be getting ready for a solid rebound. This Montréal-based company helps merchants globally manage their online and physical store operations with its unified commerce platform.
LSPD stock is currently trading at $14.93 per share, down nearly 44% from its 52-week high, with a market cap of $2 billion.
In the March 2025 quarter, Lightspeed’s sales climbed by 10% YoY (year over year) to US$253.4 million with the help of strong gains in both transaction-based and subscription revenue. To drive long-term growth, Lightspeed is investing heavily in expanding its sales force and product development, especially in North America and Europe. With growing average revenue per user and a strong balance sheet, this beaten-down tech stock may just be setting up for a comeback.
Enghouse Systems stock
Next on the list is Enghouse Systems (TSX:ENGH), a Markham-based software firm that’s been trying to find its feet again on the TSX. The company mainly focuses on building enterprise software for things like contact centres, video communications, public safety, and even transit systems.
Down nearly 23% from its 52-week high, ENGH stock is currently trading at $26.35 per share with a market cap of $1.4 billion and an annualized dividend yield of around 4.6%.
In its latest quarter ended in January, Enghouse posted a 2.9% YoY revenue bump to $124 million due mainly to solid growth in its recurring revenue. For the quarter, its adjusted earnings also climbed 21% to $0.40 per share.
Notably, Enghouse recently acquired two niche players, one in artificial intelligence (AI)-powered communications and another in European transit tech. Backed by a strong cash position and no debt, this software stock could see a comeback soon.
OpenText stock
Finally, let’s talk about OpenText (TSX:OTEX), another Canadian tech stock that’s been left behind in the broader recovery but may not stay that way for long. Based in Waterloo, OpenText helps global businesses manage and secure their digital data through its wide suite of enterprise software solutions.
Down nearly 18% from its 52-week high, OTEX stock is currently trading at $38.84 per share with a market cap of $10.1 billion and offers a quarterly dividend with a solid 3.7% annualized yield.
In the most recent quarter ended in March, the company posted a 13% YoY drop in its quarterly sales due to demand volatility and a divestiture, but its cloud revenue kept growing. OpenText is now doubling down on AI and automation with its Aviator AI platform and a big push into the hybrid cloud. Given these strong fundamentals, I wouldn’t be surprised if this Canadian tech stock makes a sharp recovery soon.
