The Canadian stock market has delivered an impressive performance over the past year, even as investors have navigated tariff uncertainty and ongoing geopolitical pressures. Canada’s benchmark index has risen by roughly 28% during this period, driven by strong momentum in gold and silver mining shares, interest rate cuts, and resilient consumer spending. This supportive environment has helped many Canadian companies post meaningful gains.
That said, not every high-quality TSX stock has participated in the rally. Several fundamentally strong TSX-listed businesses are still trading at attractive valuations, largely because of short-term concerns weighing on sentiment. Importantly, these companies remain backed by proven business models, solid financial foundations, and the capacity to generate long-term growth.
With that in mind, here are two of the best TSX stocks to consider buying now, before their potential recovery gains traction.
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Best TSX stocks #1: goeasy
goeasy (TSX: GSY) stock looks too undervalued to overlook at current levels. Over the past three months, the share price has fallen about 23.8%, and it is now down 41.6% from its 52-week high of $216.50, primarily due to a short-seller report.
The decline has also been driven by higher credit-loss provisions in the third quarter, rising funding costs, and the company’s strategic move toward secured lending. Together, these factors have pressured profitability and weakened investor confidence.
While these factors have impacted near-term results, the demand for consumer credit in Canada’s subprime lending market remains resilient. Furthermore, goeasy’s scale and leadership position in the subprime lending market provide a strong foundation for continued loan growth. The company’s diversified funding base, omnichannel operating model, and disciplined underwriting history support efficient growth and risk management.
Moreover, management’s emphasis on operating efficiency and margin protection should help stabilize earnings as the business scales and the lending mix evolves.
From a valuation standpoint, goeasy trades at an estimated forward P/E (price to earnings) of roughly 6.6, which appears undemanding relative to its historical ability to deliver double-digit earnings growth. Further, with a strong history of steadily increasing dividends and an attractive yield of around 4.6%, goeasy offers value, income, and growth potential. These qualities suggest that investors should buy this stock now before it recovers swiftly.
Best TSX stocks #2: Shopify
Another compelling TSX stock to buy now is Shopify (TSX: SHOP). While Shopify’s stock has appreciated significantly over the past decade, it has come under pressure recently. SHOP stock has dropped by over 32% in the past three months due to valuation concerns and macro uncertainty.
However, the recent weakness in the share price looks temporary, as the company has strong fundamentals. Shopify stands to benefit as retail shifts further toward multichannel selling platforms. As businesses increasingly need seamless ways to sell online, in stores, and across multiple platforms, Shopify’s unified commerce ecosystem will capitalize on the growing demand.
Shopify continues to attract merchants of all sizes, including large global brands. Further, ongoing product innovation continues to strengthen customer loyalty. Notably, the upcoming fourth-quarter earnings will reflect a surge in gross merchandise volume and mark a revenue boost from the holiday shopping season.
Besides the seasonal boost, Shopify will benefit from its focus on diversifying its revenue streams. Payments remain a key driver, while offline retail and business-to-business solutions are expanding rapidly. The ongoing rollout of artificial intelligence-driven tools, a focus on improving efficiency, and delivering sustainable earnings are positioning the company to generate attractive long-term returns for investors.
