It was an impressive year for Canadian investors, with the TSX surging nearly 30% in 2025 (well, 28% or so, but who’s counting?). With those kinds of returns, investors would be correct in assuming it would be hard to find significant losers.
Well, winners and losers are what make markets, and I think it’s just as important to focus on companies that are soaring as those that are struggling.
In this piece, I’m going to highlight two Canadian stocks which underperformed over the course of the past year, and detail why I think this dip may be one worth buying.
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TFI International
Trucking giant TFI International (TSX: TFII) is one company I would have guessed would have been down to start the year. Indeed, amid all the concerns around president Trump’s trade policies and stark shifts from a North American focus to an “American first” focus, cross-border shipping volumes have been hit hard.
Additional tariff-related concerns have led TFI’s LTL business to take a hit. Margins deteriorated, and revenue came in lower on a year-over-year basis. That’s not something fundamentally-conscious investors will want to see.
Now, I do think that there may be some silver linings here. For one, the freight business is very cyclical. These tariff and trade concerns are likely going to be temporary. In that context, TFII stock trading at a 50% discount to its peak near the end of 2024 at one point last year would have turned out to be a great entry point.
I think 2026 could turn out to be a better year for TFI and other freight-related names, particularly if the balance of power shifts in Washington come midterms. This is a cautious and speculative buy in my books, but TFI is starting to look attractive now.
Computer Modelling Group
Another decliner in 2025, losing nearly 40% of its value on the year, Computer Modelling Group (TSX: CMG) is one company I haven’t highlighted much in the past, but probably should have.
This software and consulting company represents a growth stock that has been hit by similar macro concerns, though in a different context. Carbon capture and storage are among two of the company’s leading technologies, which clearly are not in favor in the U.S. right now. Accordingly, it will be interesting to see whether a shift in power may have a material impact on this stock moving forward.
I like CMG’s chart going back to the pandemic era. In fact, this is a company with one of the best charts over the course of the past five years, at least up to 2025.
If we do see a bullish narrative build once again among top growth names, this is a stock I think could have an excellent 2026. There are simply too many positive narratives building under the surface to not pay attention.
