The broader Canadian stock market continues to rise. However, some strong, high-quality TSX stocks still look undervalued and worth buying right now. Notably, macroeconomic uncertainty, temporary earnings pressure, or cautious investor sentiment have weighed on the shares of these fundamentally sound companies, creating a solid opportunity to buy.
With this backdrop, here are three Canadian stocks that look undervalued and worth buying.
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Shopify stock
Shopify (TSX: SHOP) stock looks attractive after its recent share price decline. The stock has been under pressure due to broader macroeconomic uncertainty and investor worries about how advances in artificial intelligence (AI) might affect the software companies.
Market sentiment turned negative after the Canadian tech giant released its fourth-quarter results, which showed slower revenue growth. On top of that, management’s weaker-than-expected forecast for free cash flow margins in the first quarter of 2026 remained a drag. As a result, SHOP stock has fallen more than 22% so far this year.
Nonetheless, Shopify’s fundamentals remain solid, and the pullback has helped ease earlier valuation concerns. The company is still well-positioned to benefit from the continued shift toward omnichannel commerce.
Moreover, its push into larger enterprise clients through Shopify Plus and rapid growth in business-to-business commerce augur well for growth. In addition, solid performance in payments and offline channels is helping diversify revenue while strengthening its competitive position. At the same time, Shopify’s unified platform and early investments in AI-driven retail tools suggest it stands to gain from AI advancements rather than be disrupted by them.
With its valuation now well below previous highs, Shopify stock presents a compelling risk-reward scenario.
Cargojet stock
Cargojet (TSX: CJT) is another undervalued Canadian stock worth buying right now. Shares of the Canadian air cargo leader have fallen more than 30% from its 52-week high, largely due to softer global trade conditions and weaker international demand, which have weighed on its ACMI (Aircraft, Crew, Maintenance, and Insurance) and charter segments.
Despite these short-term pressures, the company’s core domestic operations remain strong, providing a solid foundation for recovery. Cargojet is well-positioned to benefit from ongoing growth in e-commerce and its leading role in Canada’s air cargo market, both of which help cushion the business during periods of economic uncertainty.
Its operational efficiency and long-term contracts add further stability, helping to smooth revenues even during cyclical downturns. Recent renewed agreements with major clients, such as Amazon and DHL, enhance earnings visibility and support steady cash flow.
As shipping volumes recover and demand improves across its charter and ACMI operations, the company’s share price will likely rebound, delivering strong returns.
Dollarama
Dollarama (TSX: DOL) stock looks good after the recent pullback. Notably, Dollarama stock has delivered strong returns over the past several years, significantly outperforming the broader Canadian market. However, Dollarama stock came under pressure following its weaker-than-expected fourth-quarter comparable-store sales. Moreover, macro uncertainty, its impact on consumer spending, and near-term margin pressure weighed on DOL stock.
While Dollarama stock lost notable value, its prospects remain solid. By offering everyday essentials and general merchandise at fixed low prices, it continues to appeal to budget-conscious shoppers. This will support its comparable-store sales.
Moreover, the retailer’s focus on store expansion and use of third-party delivery platforms will likely support its growth.
While Dollarama will likely deliver solid capital gains, investors will also benefit from its ability to consistently increase dividends. In short, Dollarama stock is offering value, growth, and income potential to investors.
