The S&P/TSX Composite Index has surged to new all-time highs. As of this writing, the benchmark index for the Canadian stock market is up by over 33% from 12 months ago. The stock market is full of Canadian stocks that have surged. The Canadian market has shown immense resilience in the face of trade issues and geopolitical tensions.
Investors seeking growth stocks might feel like they are too late to the party. Fortunately, several TSX stocks still lag behind the rest of the market. Today, I will discuss two bargains on the TSX that might be worth adding to your self-directed portfolio at current levels.
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Descartes Systems Group
Descartes Systems Group Inc. (TSX: DSG) is an $8.6 billion market-cap tech stock that delivered substantial growth over the last 10 years. However, the stock is down by 41.7% from its February 2025 high at the time of this writing. The company provides on-demand Software-as-a-Service solutions for logistics-intensive businesses, and concerns over Artificial Intelligence (AI) disruptions might have led to its recent downturn.
While AI is a disruptor, it can become the tailwind that Descartes needs. The company operates a leading worldwide logistics network, collecting tons of critical data that its clients can use to make better decisions. The company is leveraging the AI trend through AI-powered applications that help its clients make faster and more efficient decisions. Trading at some of its lowest valuations in the last decade, DSG stock might be a top bargain for investors.
Groupe Dynamite
Aritzia is the top name many Canadian investors consider when thinking of growth stocks in the retail space. However, Groupe Dynamite Inc. (TSX: GRGD) might be a stock more suited to investors who want to find a real diamond in the rough. Groupe Dynamite is a $5.2 billion market cap retailer operating several stores under its banner, offering luxury-inspired merchandise for women aged 14 to 45.
It recently entered the European market with its first-ever flagship store in the UK and has seen an excellent response. As of this writing, GRGD stock trades for $47.74 per share, up by 133.5% from when it became a publicly traded company. However, the stock is down by over 51% from its 52-week high. If the underlying business continues to perform well, it can be an attractive investment for growth-focused investors.
Foolish takeaway
Despite the market reaching all-time highs, it’s important not to get carried away with allocating too much capital out of greed. To paraphrase one of the most successful stock market investors, you should buy when everyone else is selling and sell when everyone else is buying.
While the rest of the market is already hitting new all-time highs, there are laggards that have yet to go through the expected uptick. DSG stock and GRGD stock have the potential to deliver outsized returns. While not without risk, these two can be good additions for growth-focused investors at current levels. If I had to pick the less risky stock from the two, I would invest in DSG stock due to its well-established presence in its industry.
