After delivering solid returns over the last few months, the Canadian equity markets are witnessing volatility this month, with the S&P/TSX Composite Index falling 1.2%. Concerns over higher valuations amid steep increases and an AI (artificial intelligence) bubble appear to have weighed on investor sentiment, dragging down equity markets. Amid the recent pullback, the index has fallen 2.4% from its recent highs.
However, the following three high-growth stocks have seen sharp cuts, losing over 15% from their recent highs. Let’s assess their recent performances, growth prospects, and valuations to determine buying opportunities in the following three stocks.
Source: Getty Images
Shopify
Shopify (TSX:SHOP), which provides commerce solutions to businesses globally, has come under pressure this month, declining 17.3% from its 52-week high. In addition to the broader weakness in the technology sector, a drop in its second-quarter earnings has weighed on the stock. However, demand for Shopify’s products and services continues to strengthen as more businesses adopt omnichannel selling models.
The company is also investing heavily in innovative AI-powered tools to meet its customers’ evolving needs and enhance overall user experience. At the same time, Shopify is expanding into new international markets, steadily growing its merchant base. Its strategic partnerships with leading logistics providers have further strengthened its shipping and fulfillment ecosystem, helping reduce delivery delays and offering merchants more flexible and reliable fulfillment options.
Additionally, Shopify’s disciplined approach to managing headcount, supported by greater integration of AI, is improving productivity and supporting its path to enhanced profitability. Given these robust growth drivers, I believe long-term investors with a time horizon of over three years can consider accumulating the stock to capture potential upside.
Celestica
Second on my list is Celestica (TSX:CLS), which has declined 22.4% from its 52-week high. After attracting strong investor interest earlier this year, the electronics manufacturing services company has faced pressure in recent weeks amid broad weakness in the technology sector and rising concerns about a potential AI bubble.
However, hyperscalers continue to invest aggressively in large-scale data centre infrastructure to support accelerating AI adoption, driving substantial demand for computing power. This trend has directly boosted the need for Celestica’s products and services. To capitalize on this momentum, the company is developing innovative offerings, including advanced switches and storage devices, which could further strengthen its competitive position.
Following a strong third-quarter performance, Celestica raised its 2025 outlook and issued an encouraging forecast for 2026. The updated 2025 guidance calls for revenue and adjusted earnings per share (EPS) growth of 26.4% and 52.1%, respectively, along with free cash flow of $425 million. For 2026, the company expects revenue and adjusted EPS to increase by 65.8% and 11.3%, respectively, from 2024 levels.
Given these robust growth prospects, and with the stock trading at just 2.2 times its projected sales over the next four quarters, I believe Celestica remains an attractive long-term buy despite near-term volatility.
5N Plus
My final pick is 5N Plus (TSX:VNP), which is currently trading about 16% below its recent highs. The stock has pulled back in the last few days as concerns over its sharp year-to-date rally and broader fears of an AI bubble have weighed on investor sentiment.
Despite this volatility, demand for specialty semiconductors remains robust, supported by sustained growth in terrestrial renewable energy and space-based solar power markets. With its global footprint, strong sourcing capabilities, and high-quality product portfolio, 5N Plus is well-positioned to continue expanding its market share and capture the benefits of these growing sectors.
Moreover, the company trades at a reasonable next-12-month price-to-earnings multiple of 21.9. Given its solid financial performance, promising growth outlook, and attractive valuation, I believe investors can use the recent pullback as an opportunity to accumulate the stock for strong long-term returns.
