Despite the TSX continuing to make new all-time highs and hover around all-time high levels at the time of writing, certain stocks do appear to be relative value plays. For those thinking about high-growth stocks and ways to play such long-term trends, a few names pop out to me as key investing opportunities in 2026 and for the long haul.
Here’s one key Canadian growth stock I think could be an excellent opportunity, down more than 22% over the past year at the time of writing.
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Kinaxis
Shares of Canadian supply chain management software company Kinaxis (TSX:KXS) have been on a rough ride of late.
The chart above highlights what I’m talking about. Despite being a niche leader in cloud-based supply chain planning, there’s been a tech-driven sell-off of companies tied to the AI revolution that’s been rather discriminate of late. Accordingly, given Kinaxis’ ties to this trend with its AI integrations and growth prospects, this is a stock that’s been hit.
That said, as a leader in the supply chain software sector, Kinaxis’ ability to help global enterprises orchestrate complex operations in real time should benefit investors looking to capitalize on a world still grappling with geopolitical tensions, shifting trade routes, and rising demand volatility.
In short, the need for better, faster supply chain decisions is secular, not cyclical. That long-term demand backdrop is showing up in the numbers. Kinaxis’ annual recurring revenue has climbed to about US$407 million, up 17% year over year, while its remaining performance obligations sit around US$846 million, with SaaS RPO at roughly US$810 million. This is precisely the kind of forward visibility most software companies would love to have.
Why Kinaxis is a fundamental growth story to consider
Recent quarterly results reinforce this story. In Q3 2025, Kinaxis grew total revenue 11% year over year, with SaaS revenue up 17%, and boosted adjusted EBITDA 13%, for a strong 25% gross margin. Additionally, free cash flow for the last 12 months has approached a near-20% margin, even after one-off items. This highlights a business that can both grow and throw off cash.
The company’s management team has raised or tightened guidance more than once, now calling for 2025 total revenue of US$535 to US$550 million and SaaS growth of roughly the mid-teens, alongside an adjusted EBITDA margin of 24–26%. For a company whose stock is slumping, the operating trend looks remarkably resilient.
Why this is an opportunity to consider right now
Even after Kinaxis’ recent stock price decline, this is a top Canadian growth stock that now trades at a much more reasonable multiple. Yes, this is a stock with a premium multiple. However, the company’s asset-light, sticky SaaS model and above-average growth is deserving of such a multiple.
When investors rotate out of richly-valued tech, names like Kinaxis often get hit first. That can happen regardless of how excellent a given company’s fundamentals are. And it’s important to note that analysts remain broadly constructive on Kinaxis, with a consensus “Buy” rating and an average price target near $224.
I think this implies substantial upside from recent levels around the $130 level. In my view, that disconnect between sentiment and fundamentals is where opportunity lives.
