Last week proved challenging for global equity markets, including Canada, as the S&P/TSX Composite Index declined by 1.2%. Investor sentiment weakened amid concerns over steep increases, trade disruptions driven by tariffs, and persistent inflation. Despite this pullback, the index remains up about 21% year to date.
That said, the following two Canadian stocks have lagged the broader market for various reasons, creating compelling buying opportunities for investors with a long-term horizon of three years or more.
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Lightspeed Commerce
Last week, Lightspeed Commerce (TSX: LSPD) delivered an impressive fiscal 2026 second-quarter performance, surpassing market expectations. Revenue rose 15.1% year over year to $319 million, exceeding analysts’ estimates of $309.4 million. The expanding customer base, a 15% increase in average revenue per user (ARPU), and higher gross transaction value (GTV) and gross payment volume (GPV) drove its topline growth.
Although net losses widened slightly from $29.7 million to $32.7 million, the company reported an adjusted net income of $22.2 million. Adjusted earnings per share (EPS) came in at $0.16, marking a 23.1% improvement over the same quarter last year. Additionally, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 52.1% to $21.3 million, while free cash flow rose to $18 million from $1.6 million in the prior year. The company’s innovative product launches, including artificial intelligence-powered products, and disciplined execution have boosted both its top and bottom lines. Meanwhile, Lightspeed ended the quarter with a strong cash position of $462.5 million, leaving it well-positioned to support its ongoing growth initiatives.
Following its strong second-quarter results, Lightspeed’s management raised its fiscal 2026 outlook. The company now expects revenue to grow by 12% for the year, with adjusted EBITDA projected to exceed $70 million — a 30.4% increase from the previous year. Boosted by its solid performance and upgraded guidance, Lightspeed’s share price has climbed more than 12% since the earnings announcement. However, despite this recent rebound, the stock remains down over 16% year to date. Given its robust financial performance and promising growth outlook, I believe Lightspeed presents an attractive buying opportunity at current levels.
goeasy
goeasy (TSX: GSY) is another stock that has lagged the broader equity markets, shedding more than 20% of its value so far this year. Its weaker-than-expected third-quarter results and a short-seller report from Jehoshaphat Research have dampened investors’ sentiments, dragging the stock down. The company also increased its provisions for future credit losses in response to a rise in early-stage delinquencies, reflecting the impact of ongoing macroeconomic headwinds.
Despite these challenges, the alternative financial services provider has reaffirmed its three-year growth outlook, underscoring management’s confidence in its long-term prospects. Management expects the loan portfolio to expand to between $7.35 billion and $7.75 billion by the end of 2027, with the midpoint implying a 38% increase from third-quarter levels. Additionally, the company projects revenue to grow at an annualized rate of 11.3% while targeting an improvement in its operating margin to 43% by 2027.
Furthermore, the recent sell-off has pushed goeasy’s valuation to compelling levels, with its next 12-month (NTM) price-to-sales and price-to-earnings ratios standing at 1.1 and 6.6, respectively. The company has also demonstrated a strong commitment to shareholder returns, increasing its dividend at an impressive compound annual rate of 29.5% over the past 11 years and currently offering an attractive yield of 4.5%. Given its solid fundamentals, consistent dividend growth, and discounted valuation, I believe goeasy is well-positioned to deliver strong long-term returns.
