Before the next big market move, I’d look for stocks that already have something working in their favour. That usually means sticky customers, improving earnings, and a business model that can keep growing even if the market gets choppy for a while. Software names can fit that setup well, but not all software stocks are created equal. Right now, I’d lean towards companies with clear catalysts, real recurring revenue, and enough momentum to catch attention if investors start rotating back into growth. So, let’s look at some to consider on the TSX today.
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DND
Dye & Durham (TSX:DND) sells software and data tools to legal, financial, and property professionals. Over the last year, it has gone through leadership upheaval, activist pressure, takeover drama, and a push to review strategic alternatives. There were reports of an unsolicited take-private offer at $20 per share in February 2025, and later covered the internal fight around management and the board. That’s a lot of noise, but it also shows this business still holds real value.
The latest numbers show why this is still a speculative pick. In fiscal 2025, revenue slipped to $440.7 million, while net loss came in at $88 million. In the fiscal second quarter (Q2) of 2026, revenue fell 8% year over year to $107 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped 22% to $50.4 million.
Still, management has been cutting costs, paying down debt, and aiming for $15 million to $20 million in annualized savings. With DND stock trading around 0.6 times sales, the valuation looks beaten down. That could make it interesting before a market rebound, though the debt load and execution risk are still impossible to ignore.
TCS
Tecsys (TSX:TCS) provides supply chain software, with a strong foothold in healthcare and complex distribution. That’s a nice place to be right now because hospitals and distributors still need better visibility, automation, and efficiency, no matter what the broader market does. Over the last year, Tecsys expanded in India, launched new hospital inventory tools, and put its Elite platform on AWS Marketplace, which should make it easier to win new clients and scale faster.
The business is also moving in the right direction. In fiscal Q3 2026, revenue rose to $48.5 million from $45.2 million, while Software as a Service (SaaS) revenue climbed 17% to $20.1 million. For the first nine months of fiscal 2026, total revenue reached $143.1 million and adjusted EBITDA rose to $13.3 million from $9.1 million. Management also announced a workforce reduction expected to save about $8.1 million annually, which should support margins. The catch is valuation. Tecsys trades around 2.8 times sales and has a very rich earnings multiple.
KXS
Kinaxis (TSX:KXS) sells supply chain orchestration software through its Maestro platform, and that business has become more relevant as global companies keep trying to manage disruptions, demand swings, and inventory headaches. The last year brought plenty of change, including activist pressure, a CEO transition, a new artificial intelligence (AI) push through Maestro Agent Studio, and a larger buyback. That’s a lot going on, but unlike DND stock, Kinaxis paired the change with real operating strength.
The numbers are strong. Kinaxis reported record fourth-quarter 2025 revenue of $144.2 million, with SaaS revenue up 19% to $97.2 million. For the full year, adjusted EBITDA rose 30% to $138.4 million, and management guided for 2026 total revenue of $620 million to $635 million with SaaS growth of 17% to 19%. The stock trades with a trailing price-to-earnings (P/E) ratio of around 44 and a forward P/E of around 24. That isn’t cheap, but it looks more reasonable when paired with this level of growth and margin expansion.
Bottom line
If I had to rank these before the next big market move, Kinaxis looks like the best all-around choice, Tecsys looks like the quieter under-the-radar option, and DND stock looks like the high-risk wildcard. All three have a reason to be on the list, but for different reasons. That’s what makes them interesting now. If the market starts moving fast, investors may reward quality growth first, profitable niche players second, and turnarounds last. These three give you a way to play each angle.
