The TSX Composite Index is continuing to post new all-time highs in 2025, making it increasingly challenging for investors to find quality stocks still trading at reasonable valuations. When the broader market is surging, it’s easy to assume all the good deals are gone — but that’s not always the case. Some strong businesses have been left behind in this rally, not because they have weak fundamentals but because they haven’t caught the market’s eye yet.
If I had $3,300 to invest today, I’d be looking for exactly that — great companies that have lagged in the short term but have strong fundamentals for long-term growth. Here are two such TSX stocks investors can consider buying today.
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Descartes Systems stock
Let’s start with Descartes Systems (TSX: DSG) — a Canadian tech firm that provides cloud-based logistics and supply chain software. It helps businesses move goods efficiently and comply with global trade rules. DSG stock is currently trading at $160.62 per share, giving the company a market cap of about $13.7 billion. The stock has climbed about 17% over the past year but has slid nearly 2% so far in 2025, creating an interesting opportunity for investors looking beyond short-term trends.
In its fiscal year 2025 (ended in January), Descartes grew its total revenue by nearly 14% YoY (year over year) to US$651 million. Most of this came from its services segment, which now makes up 91% of overall revenue. And its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed by 15% from a year ago to US$284.7 million, with margins improving slightly to 44%. These gains reflect strong demand for its logistics tools and focus on cost control.
What makes Descartes even more appealing is how it’s investing heavily in expanding its global logistics network, adding services to help customers manage global trade challenges. The company is also benefiting from its deep expertise in tariffs, compliance, and cross-border shipping, which are only becoming more complex amid escalating global trade tensions. For anyone looking to invest in a TSX stock that hasn’t rallied but is still delivering solid growth, Descartes stock could be a great choice today.
ATS stock
Next on my list would be ATS (TSX: ATS), an automation expert that’s still catching up in this market rally. If you don’t know it already, this company builds high-tech industrial automation systems that help global companies in several sectors streamline production. ATS stock is trading at $42.13 per share with a market cap of around $4.1 billion. Its shares are down about 4% in 2025 so far but have bounced roughly 28% over the past month alone.
According to its preliminary results for the March quarter, ATS saw a 9% YoY decline in revenue to $721 million. However, this figure exceeded Street analysts’ expectations of $687 million by a wide margin, leading to a recent rally in ATS stock. Notably, ATS continues to double down on regulated markets, expand its service offerings, and lean into artificial intelligence-driven tools for industrial automation, strengthening its long-term growth outlook. For investors hunting for a quality stock that hasn’t yet fully rallied, ATS could be worth considering.
