2025 was a better year for the TSX Index than most people thought. Yet, even with the TSX up 29% this year, many Canadian growth stocks underperformed or even declined for the year. This presents opportunities for 2026.
You can buy high-quality growth stocks at some of their lowest valuations in years. If you want to be opportunistic, here are three I would buy with $2,000 right now.
A real estate growth story
For a real estate stock, Mainstreet Equity (TSX:MEQ) has delivered exceptional long-term returns. Its stock is up 131% in the past five years and 500% in the past 10 years.
Mainstreet buys and operates older, centrally located apartment blocks across Western Canada. These are generally unregulated markets, providing the most flexibility to steadily raise rents.
The rental apartment investor can buy these apartments at far below replacement cost. It has a value-add strategy whereby it can fix the buildings up, stabilize the properties, and raise the rents over time.
Currently, residential properties are facing a tough market. Mainstreet has substantial liquidity to supercharge its acquisition strategy. It’s trading at its lowest valuation in the past three years. This could be an ideal time to add this quality real estate compounder.
A network stock with a long-term future
Descartes Systems Group (TSX:DSG) has likewise delivered great long-term returns for shareholders. This stock is up 347% over the past 10 years. Yet, Descartes’ stock is down 25% this year.
One would think there is something wrong with the business. However, Descartes has delivered record results in 2025. Year-to-date, revenues are up 11% to $536 million, and EBITDA (earnings before interest, tax, depreciation, and amortization) is up 15% to $240 million! It earns an incredible 45% EBITDA margin!
Descartes operates a crucial transportation network around the globe. Its diverse software services save shippers, transporters, and logistics providers time, money, and effort. Even though it has been a very difficult freight environment, Descartes has been taking market share.
This company generates a lot of cash. As a result, it has a very rich balance sheet with over $278 million of net cash. Descartes has a history of making good acquisitions. It is very likely to continue this trend.
Descartes’ high-quality business has always demanded a premium valuation. Yet, despite great execution, this stock is trading at its lowest valuation since 2020. Now seems like an attractive opportunity to add this great network business.
A small-cap software stock with tonnes of growth ahead
With a market cap of $573 million, VitalHub (TSX:VHI) is the small-cap pick in this mix. Like its peers above, it has been a great stock over the long term. It is up 214% in the past five years!
VitalHub provides software to niche areas of the healthcare market. It mainly works with public health systems in Canada, the U.K., the Middle East, and Australia. Like Descartes, VitalHub helps streamline processes and ensure better health outcomes.
Like the stocks above, it has delivered strong results in 2025. For the first nine months, revenues are up 62% and adjusted EBITDA is up 49%!
VitalHub is loaded with $123 million of cash that it can use to deploy into acquisitions. It has a great history of acquiring and integrating smaller software businesses. Acquisitions will likely provide further growth for the future. This stock is a great buy after it has fallen 17% this year.
