Even though TSX stocks continue to charge higher in 2026 (from huge years in 2025 and 2024), there are still some great bargains to be found. The only problem is that you will have to be a buyer when it is highly unpopular to do so.
Nobody wants to catch a falling knife. Yet, sometimes buying a TSX stock that has been hated by the market can be an amazing opportunity, especially for a long-term investor. If you don’t mind being a contrarian, here are two TSX stocks that could be amazing deals.
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Constellation Software: This TSX stock is down 40%, but this story isn’t over
It has been an ugly year for Constellation Software (TSX: CSU). This TSX stock is down 15% in 2026 alone. That is after a 25% decline in 2025. Investors have given up all their gains since early 2023.
The decline is not due to poor operational or financial performance. For the first nine months of the year, revenues increased 15% to $8.446 billion, cash from operations rose 28% to $1.9 billion, and free cash flow increased 27% to $1.26 billion. Really, there is not much to dislike about these results. It has delivered results like this for years.
The big concern is artificial intelligence’s impact on Constellation’s +1,000 niche software companies. Many investors are worried that competition from new AI software solutions could rapidly steal Constellation’s market share.
Certainly, AI is a significant risk. The market has already downgraded Constellation’s valuation to factor in some of these terminal risks. Yet, the market isn’t factoring in how AI could potentially benefit/boost its business. It may all balance out in the end, and this downdraft could be a serious overreaction.
Constellation’s stock is trading near its cheapest valuation in five years. If you don’t mind the risk, this could be an exceptional opportunity to add a great compounding TSX stock.
Propel Holdings: This TSX stock is down 32% but growing rapidly
Another TSX growth stock that has been down in the dumps is Propel Holdings (TSX: PRL). While it is only down 1% in 2026, it fell 31% in 2025.
AI is actually a major part of Propel’s business. It uses AI algorithms to analyze hundreds of factors when it offers its consumer loans. This company has been growing by +40% per year for almost five years. Last year, its growth slightly moderated, and the stock swiftly declined.
Yet, this company still has a huge growth runway. It just expanded into the U.K. It will start to see synergies and margin improvements from its acquisition there. It is gaining traction from its lending-as-a-service platform. The company just announced progress to becoming a bank as well.
Right now, Propel trades for only eight times forward earnings. This TSX stock has an attractive 4.4% yield. For a company growing by at least a 20% rate per year, it seems like an exceptional bargain.
The Foolish takeaway
Sometimes, to get the best returns, you need to take a contrarian approach to the market. In fact, drawdowns can provide the greatest opportunities to upsize your long-term returns.
After massive drawdowns, TSX stocks like Constellation and Propel don’t look too attractive. However, if you can look past the near-term dank sentiment, there could be sunnier days ahead.
