The recent correction in the stock market after the announcement of Budget 2025 and the end of the U.S. government shutdown has created an opportunity to buy good stocks at a dip. Do not mistake bargain stocks for any stock whose price has dipped. Bargain stocks are those that have strong return potential and healthy fundamentals, but the market sentiment is pulling the stock down on unconfirmed fears.
Three bargain stocks to invest $3,000
The current market scenario has some stocks that have dipped significantly in the second half but are promising for 2026.
Dividend stocks trading at a bargain
Since the whole interest rate-hike saga began in April 2022, telecom stocks have been in a downtrend. It is because they took on huge debt to build 5G infrastructure. The turnaround time for investments to give desired returns (ROI) has increased. Behind this is a regulatory change that opened the network infrastructure to competitors, which diluted the ROI and forced large telcos to reduce capital spending, cut costs, and sell non-core assets to reduce debt.
Among the top three Canadian telcos, Telus (TSX:T) is at a sweet spot. It has adapted to this change and is growing its revenue on competitor networks. The management has slowed dividend growth from 7-10% to 3-8% as it diverts cash flow towards debt reduction.
Telus has reduced its dividend-payout ratio to 75%, within its target range of 60-75%. This shows that it can sustain dividends and even accelerate dividend growth after reducing the leverage ratio from 3.5% to the target range of 2.2%-2.7%.
Now is a good time to buy the stock as it trades near its 52-week low. The lower stock price has inflated the dividend yield to 8.9%, making it a good bargain.
Growth stocks trading at a bargain
Topicus.com
Among growth stocks, Topicus.com (TSXV:TOI) is trading at a bargain. The stock fell 30% after the sudden exit of the founder and CEO of its parent company, Constellation Software. However, there aren’t any major changes in Topicus management.
Still, its stock dipped as its two largest acquisitions this year of Asseco Poland and Cipal Schaubroeck increased its debt. Since the company amortizes intangible assets from its acquisitions, it has reduced its earnings per share (EPS). The high debt and lower EPS will normalize in 2026 and beyond, as they did after 2021 when it acquired Topicus.com.
The first quarter could see a surge in cash flow as most software maintenance bills become due. The new cash inflow could be used to reduce debt and make more acquisitions, growing its free cash flow and enterprise value. Topicus.com is currently a cyclical stock that can grow your money by 40-60% in growth periods and lose this value in a downturn.
Now is a good time to buy the dip and book your spot for the next growth cycle.
Air Canada stock
Air Canada (TSX:AC) stock has dipped 20% in the second half as seasonal weakness, labour disputes, and a slowdown in cross-border traffic impacted its costs. Looking past these headwinds, the airline has reduced debt and increased free cash flow to a level that it could remain profitable even when travel demand is slow. The airline space is seeing an increase in capacity. Many airlines have placed significant aircraft orders, creating an aircraft supply shortage.
As cross-border travel reduces, Air Canada is diverting aircraft capacity to other busy routes. With labour issues now resolved and holiday season travel picking up, the airline stock could see a 20% upside to $22 in January 2026 or a summer season rally to $25 by July 2026. The current trading price of $18 is a good entry point to take advantage of the seasonal rally and sell the upside.
