After two years of incredible growth, TSX stocks could be due for a little more volatility. The TSX Index is up nearly 50% since the start of 2024. Given all that is happening economically and geopolitically, it is surprising we haven’t seen considerably more volatility on the Canadian indices.
TSX stocks could be due for a rise in volatility in 2026
Yet just because the Index is up doesn’t mean all TSX stocks are up. In fact, software stocks are having an abominable year. Fears about artificial intelligence (AI) disruption are weighing heavily on information technology and software services stocks. Even well-known growth stocks without software exposure are being drawn down.
If you still believe in the growth potential of these companies, you can pick them up at very attractive valuations. If you are looking for long-term, durable growth, here are two TSX stocks to buy today.
Topicus.com: A growing software stock that suddenly looks cheap
Topicus.com (TSXV:TOI) has been one of the serious victims of the software selloff. This is not a well-known name in Canada. However, it was spun out a few years ago from well-known software consolidator, Constellation Software.
Topicus is Constellation’s operating arm in Europe. It acquires niche software stocks across the European continent. While AI could be a threat to Topicus, I believe it is overblown by the market.
Topicus is heavily entrenched with its institutional partners. Its software is specially catered to the geography, language, regulations, laws, and customs of specific customers in specific nations.
In themselves, these are small markets difficult to penetrate without years of established rapport and service. AI could benefit Topicus because it can use more efficient development to add additional services to its platforms or enhance the customer’s access to data and insights.
Likewise, as an already established European software provider, who’s to say Topicus can’t use AI to penetrate new markets or create new businesses?
Overall, this company still has a long runway of growth ahead. Yet you can buy it at nearly a 50% discount to where it was trading just six months ago. This TSX stock is trading with a 10% free cash flow yield right now. It looks like an attractive buy if you can stomach the recent selling pressure.
Colliers: A long-term TSX growth stock
Colliers International Group (TSX:CIGI) appears to have somehow got caught up in the recent tech sell-off, even though its business has no relationship to software.
This TSX stock is perhaps best known for its global commercial real estate brokerage. Yet, it offers a wide array of real estate services, including property management and financing. It also has a growing investment management business. Most importantly, its engineering and advisory franchise is quickly growing into a powerhouse.
It just announced a substantial acquisition in Spain that will give it a platform to grow a meaningful European business. This is on top of three other tuck-in acquisitions announced in 2026.
Many still see Colliers as a cyclical brokerage business. They fail to see that it is a diversified services platform that earns a much more predictable stream of income. In fact, over 70% of its income comes from recurring services.
Colliers should grow by over 15% in 2025. Given recent acquisitions, it is likely to maintain a double-digit growth rate in 2026.
This TSX stock has compounded returns by a mid-teens rate for over two decades. Its recent dip presents an attractive opportunity to add this quality growth company to your portfolio for the long term.
