What Investors Missed While Watching Canada’s Big Cap Names

Look beyond Canada’s biggest names. Two under-the-radar TSX stocks could be the next long-term portfolio winners.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 10, 2025 4:20 pm EDT

| More on: CVOGDI

Key Points

Coveo (CVO) is a niche AI search and personalization SaaS company with recurring revenue and potential upside if growth accelerates.
GDI runs recurring facility services contracts, aims for steady cash flows, and supports shareholders with a buyback despite short-term noise.
Looking below large caps can uncover mid- and small-cap Canadian stocks offering stronger growth than crowded bank and energy picks.

Canadian investors love investing in the familiar. We go to the biggest names in Big Six banks, energy, and utilities when we want Canadian stocks to invest in long term. But guess what, everyone else is doing that too! This can lead to an inflated share price, and could mean slow growth or even pullbacks in share price.

In light of this, it’s important to diversify and think outside the box, looking lower than the top of the market cap ladder to find serious growth stories bubbling up from mid- or even small-cap tiers. So today, we’re going to look at two opportunities in Canadian stocks you might have missed while focusing on the big name brands.

towels hotel — Image source: Getty Images

CVO

Coveo Solutions (TSX:CVO) is a software company focusing on artificial intelligence (AI), search, relevance, and personalization solutions. Basically, these tools help enterprises deliver the most relevant online experiences. However, many may have missed out on the AI stock because of its niche focus.

Even so, CVO has been making some moves that have analysts sitting up to pay attention. The Canadian stock emphasized its AI and generative AI capabilities to learn what many see as the next wave in enterprise software. In fact, the company recently offered forward guidance that signalled management is trying to guide the transition rather than leave it open to others to decipher.

Right now, analysts predict upside at current levels of around 25%. If the Canadian stock can convert its AI positioning into stronger and accelerating recurring revenue growth from its software-as-a-service (SaaS) position, the valuation could expand significantly. Cost control and innovation will need to be a part of this. This can come with risks, but it’s certainly now a Canadian stock investors should keep on their watchlist.

GDI

Then we have GDI Integrated Facility Services (TSX:GDI), a compound story that may not be flashy, but is no less exciting. The Canadian stock runs large-scale janitorial, facilities management, and technical services across North America. It self-performs much of the work, creating bundles of recurring contracts to target efficiency and drive margins. Whether it’s HVAC maintenance or healthcare cleaning services, the company covers it.

The second quarter of 2025 could be why some investors are thinking twice about the stock, with GDI operating at a net loss. However, management is still positive about the outlook. The business overall is performing well, generating higher than historic profitability, according to management.

The Canadian stock now has a buyback program for investors to drool over, as well as a stable outlook. Facilities services don’t trend, but aren’t too cyclical either. Wage inflation pressures or accounting line items can make near-term prints look noisy. However, in the longer term, the core model is contract-backed and diversified. So we’re looking at an investment that’s years, not months.

Bottom line

Sometimes we get too focused on the top of the ladder and forget that there are other steps to take to get there. When it comes to these two Canadian stocks, they could be ladder rungs that provide the building blocks for some of your greatest portfolio performers.