While many Canadian stocks have enjoyed a huge windfall from strong TSX performance in 2025, many great Canadian growth stocks have taken a hit. Many investors have taken a more speculative stance on mining and artificial intelligence (AI) stocks. Boring, steady compounders have been left in the dust.
If you don’t mind being a little contrarian, there are some great long-term buying opportunities. Some of these stocks have been on a steep decline, so you may want to dollar-cost average as you build a position. Likewise, starting a position may take some fortitude. However, it could pay off when these stocks prove their resilience over time.
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A Canadian software stock to buy on the pullback
Topicus.com (TSXV:TOI) has been pummelled in the past six months. This Canadian stock is down 46% in the past six months and 23% in the past year.
If you saw these returns, you might think something is wrong with its business. However, that is simply not true. Year-to-date 2025 revenues were up 20% and free cash flow rose 19%. That is before it really started to enjoy the benefits of a big investment in Asseco, a Polish software conglomerate.
The reality is that software stocks have been rejected by the market on concerns about AI disruption. While AI is a concern to monitor, companies like Topicus could benefit. AI could enable it to better build solutions for its niche customer base. Likewise, AI could enhance applications that it can provide to customers.
Topicus is trading near its lowest valuation since its initial public offering in 2021. For a company that has grown operating cash flow by a 23% compounded annual growth rate (CAGR), it seems like an attractive buying opportunity.
A fintech stock with a growing dividend
Propel Holdings (TSX:PRL) is a bit more speculative. However, this Canadian stock could pay out some big gains in the years ahead. Its stock is down 33% in the past six months and 40% over the past year.
Yet, if you don’t mind a stock that can be a bit volatile, the pullback could be an opportunity. Propel provides consumer loans to the sub-prime market. These are riskier clients. However, it spreads its risk by smart underwriting through its AI platform, only offering small loans, and requiring elevated interest rates.
Propel has been growing profitably by an over 40% CAGR. Even if growth were to moderate to the 20% to 30% range, you only pay a price-to-earnings (P/E) ratio of nine. This Canadian stock also pays a nice 3.5% dividend yield (which it has been growing regularly), so you get paid to wait for the stock price to recover.
A Canadian engineering stock with years of growth ahead
A boring professional services company like Stantec (TSX:STN) may not be the typical stock you would consider as a growth stock. Yet, this Canadian stock is up 24% in the past year and 170% in the past five years.
Stantec is a leading Canadian provider of engineering, architecture, and environmental services. Over the past three years, it has grown revenues by an 11% CAGR and earnings per share has risen by a 35% CAGR.
Anytime you see earnings growth faster than revenues shows that the company is benefitting from economies of scale and operating leverage. This is a well-managed business with major long-term tailwinds like aging infrastructure renewal, urbanization, electrification/grid modernization, and AI/data capacity expansion.
Stantec stock is down 12% in the past 90 days. This Canadian stock could be a solid buy if you have a long-term, buy and hold investment strategy.
