The Canadian equity market showed resilience and delivered impressive gains over the past year. Despite persistent tariff disputes and elevated geopolitical risk, the benchmark index has climbed more than 28%, supported by a rally in gold and silver producers, a shift toward monetary easing, and steady consumer demand.
That said, several high-quality companies continue to trade at low valuations. These fundamentally strong stocks reflect temporary earnings pressure or macro-driven sentiment shifts. However, these TSX stocks are backed by a proven business model, have solid long-term growth prospects, are likely to navigate near-term uncertainty, and recover swiftly as the operating environment and market sentiment improve.
With that backdrop, here are two TSX stocks that are too cheap to miss.
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Cheap TSX stocks #1: goeasy
goeasy (TSX:GSY) stock is too cheap to miss following the recent pullback in its share price. The stock has dropped 38.5% over the past six months and sits more than 43% below its 52-week high of $216.50. This notable correction was triggered by a short-seller report, higher credit-loss provisions, rising funding costs, and a strategic shift toward secured lending, which lowered portfolio yield.
These headwinds have weighed on near-term profitability and market sentiment. However, the underlying demand for consumer credit in Canada’s subprime market remains solid. As a market leader with a large domestic presence, diversified funding sources, and a disciplined underwriting track record, goeasy is well-positioned to continue expanding its loan book while managing risk prudently.
Management’s focus on operating efficiency and margin stability should support earnings as the lending mix evolves. Trading at roughly 6.4 times forward earnings and offering a dividend yield near 4.7%, goeasy’s valuation appears discounted relative to its history of double-digit earnings growth, making the recent weakness hard to ignore.
Cheap TSX stocks #2: Shopify
Shopify (TSX:SHOP) stock is too cheap to miss. The stock is down roughly 30% year to date and is trading about 39% below its recent high of $253.10. The pullback reflects valuation concerns and investor anxiety that artificial intelligence (AI) could disrupt its business model. Investors’ sentiment was further pressured by a deceleration in Q4 revenue growth from the third quarter and by management’s guidance that first-quarter free cash flow margins will come in slightly below the level reported in the first quarter of 2025.
Despite these concerns, the company’s fundamentals remain solid. Shopify’s management expects revenue growth in the low 30% range year over year in the first quarter. Payments will remain the growth catalyst, with strong Shop Pay adoption driving higher merchant engagement.
Shopify’s Growth is also likely to be driven by existing merchants expanding their activity on the platform, steady additions of new merchants across multiple channels, and accelerating international traction, particularly in Europe. Shopify is also rolling out more of its products into additional geographies, broadening its global footprint.
The business-to-business and offline segments will likely sustain momentum in 2026, supporting Shopify’s growth as these channels expand its total addressable market by attracting larger enterprises and new industry verticals.
Shopify carries no debt and maintains a solid balance sheet, while consistently generating free cash flow. That financial flexibility provides room to invest in product innovation, including AI-driven initiatives. As consumer purchasing behaviour evolves, Shopify’s Agentic Storefronts initiative aims to position merchants for an AI-enabled commerce environment, strengthening the platform’s competitive moat rather than weakening it.
With the recent correction, much of the prior valuation premium has been compressed, making Shopify stock an attractive investment.
