The Canadian equity market has been climbing steadily this year, as the economy continues to hold up well. Notably, the S&P TSX Composite Index has already delivered an over 12% gain year-to-date, thanks to the solid performances from some of the country’s leading companies. Despite the rally, several fundamentally strong stocks are still trading dirt cheap, leaving attractive entry points for investors who are willing to take advantage of the current gap between value and performance.
So, if you have $500 to invest, here are two top Canadian stocks to buy right now at a discounted valuation.
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Cargojet stock
Cargojet (TSX: CJT) is one of the top TSX stocks to buy now at a discounted price. Shares of this leading air cargo operator are down about 29% from its 52-week high of $144.97. While the stock is trading cheaply, its fundamentals remain solid and the company has been consistently delivering strong financial performance.
Cargojet’s diversified revenue base and long-term contractual agreements provide stability even in challenging environments. In the first half of 2025, the company reported solid growth across both domestic and charter operations. Further, it delivered an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 33.7%. This highlights resilient demand and efficient cost management across its network.
Cargojet’s long-term contracts, spanning four to ten years and backed by minimum volume guarantees, provide consistent cash flows while protecting margins through built-in inflation-linked price increases. With roughly three-quarters of its domestic revenue tied to these agreements, the company remains relatively resilient to market volatility.
Its strong balance sheet, focus on lowering leverage, and investments in network connectivity further enhance its growth prospects. Moreover, Cargojet’s dominant position in time-sensitive air freight places it in an excellent spot to benefit from increasing e-commerce penetration and shifting trade flows that favour direct imports.
Operating a fleet of 41 freighters, most of which it owns, the company has the scale and flexibility to capture growing demand without incurring heavy costs. In short, Cargojet offers a compelling mix of stability and growth potential that makes the current pullback an opportunity worth considering.
Lightspeed stock
Lightspeed Commerce (TSX: LSPD) is another solid stock that is trading dirt cheap. The Canadian tech stock slid earlier this year as macroeconomic worries weighed on consumer spending. Investors’ frustration grew further when management decided to stay public instead of going private. Nonetheless, the company’s long-term growth catalysts remain intact, making it a buy near the current price levels.
Lightspeed’s customer base continues to expand, with 1,700 net new customer locations added in its growth markets during the latest quarter, a 5% year-over-year increase. Average revenue per user (ARPU) has surged, hitting a record $655, up 16% from last year, as more businesses adopt its software and payments ecosystem. These gains reflect the platform’s growing appeal and its ability to capture higher-value customers.
Revenue growth remains solid, climbing 15% last quarter on the back of stronger software adoption and accelerating payments usage. Meanwhile, the company is moving towards profitability, with adjusted free cash flow nearing breakeven. Its capital business and expansion of Lightspeed Payments should further boost margins and gross profit in the quarters ahead.
While the stock witnessed some recovery, it still trades at an enterprise value-to-sales multiple of just 1. This valuation looks cheap considering its scale, customer growth, and rising ARPU. Momentum is building in North America and Europe across retailers and restaurants. With omnichannel adoption rising, Lightspeed is well-positioned for solid growth and share price gains.
