Mid-cap stocks look like a great place to diversify into for those seeking greater value and a shot at outsized growth over the long haul. Undoubtedly, it’s tough to find heavily discounted stocks in the large-cap scene nowadays, especially after the TSX Index had a historic year of gains.
While 2026 seems highly likely to fall short of last year’s near-30% run in the Canadian stock market, I do think that stock pickers willing to look far and wide for value might just find it with the lesser-loved, lesser-known names in the mid-cap universe. In this piece, we’ll check in on three interesting mid-cap stocks that are worthy of investors‘ attention.
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Badger Infrastructure Solutions
First up, we have Badger Infrastructure Solutions (TSX: BDGI), a mid-cap industrial with a $2.7 billion market cap that few Canadians know about. The firm, formerly known as Badger Daylighting, stands out as a premier firm that can grow on the back of increased infrastructure spending. Undoubtedly, if there is an infrastructure boom in the coming decade, Badger has a high growth ceiling to continue its hot run. The year may have just begun, but shares of BDGI are already up 10%. That’s a full year’s worth of expected gains in just the first few weeks of 2026.
Of course, I don’t think it’s too late to punch a ticket to the stock, especially if you’re a bit light on the mid-caps, as many Canadian investors might be. At 22.5 times forward price-to-earnings (P/E), Badger stock is priced more as a growth play, and while lower multiples could be on the horizon if the TSX Index faces a steep correction, I certainly wouldn’t want to bet against the name, especially since the long-term growth story looks so impressive.
Sure, soil excavation services aren’t fancy, but such a business is incredibly well-positioned in a time when infrastructure spending is poised to stay robust. The stock may have soared 111% in the past year, but there might be plenty of gas left in the tank, especially now that management is operating at a very high level. Personally, I think Badger has a good shot to become a $3 billion company if it plays its cards right in this new year.
Cargojet
Cargojet (TSX: CJT) shares have been walloped in recent years, tanking by nearly 70% from peak to trough. More recently, shares have shown signs of life, gaining around 37% since the lows of November 2025. Of course, there’s still an uphill climb ahead, especially if the Canadian economy faces increased turbulence through the new year. Either way, the stock looks severely oversold and perhaps incredibly undervalued at 11.8 times trailing P/E.
Though the future is hazy, the recent insider buying activity, I think, is a good sign that there might be a discount to be had in the air freight firm, which faces incredibly low expectations ahead. The $1.4 billion firm may have already been through the worst of the headwinds. The big question for investors is how fast earnings could bounce back if the consumer is ready to start spending again.
