Catching up on retirement savings can feel overwhelming. Many Canadians look at their RRSP (Registered Retirement Savings Plan) balance and wonder if it’s too late to make real progress.
Here’s some good news. You don’t need to chase risky bets to build wealth faster. Sometimes the best Canadian stocks are right in plain sight, trading well below their highs, allowing you to buy the dip.
Two Canadian stocks fit that description right now. Groupe Dynamite (TSX: GRGD) and Boyd Group Services (TSX: BYD) both just reported strong results. Yet both TSX stocks trade close to 45% below their all-time highs.
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Is this TSX stock undervalued?
Groupe Dynamite owns the GARAGE and Dynamite clothing brands.
At its annual meeting on June 16, chief executive officer Andrew Lutfy said comparable store sales jumped 22.6% in the first quarter, gross margins reached their highest level in four years, and the adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin expanded to 36.8%, up 730 basis points year over year.
Lutfy noted comparable store sales are tracking around plus-9% in Canadian dollars, or 11% in constant currency, supported by continuing strength in the United States.
Chief financial officer Jean Philippe Lachance broke down the full fiscal 2025 year as follows. Total revenue increased 36.7% to $1.3 billion, driven by comparable store sales growth of 26.7%.
Gross margin expanded 100 basis points to 63.8%, while operating income increased 78% to $377.7 million and adjusted EBITDA increased 57.6% to $477.9 million.
The company is also expanding internationally. Management confirmed that GARAGE has successfully entered the United Kingdom, with the Oxford Street store validating the brand’s ability to expand beyond its home market.
Looking ahead, Lachance said the company is guiding for comparable-store sales growth between 11% and 14%, and total revenue growth between 22% and 25% for fiscal 2026.
Management also raised its profitability outlook, saying it now expects an adjusted EBITDA margin between 38.25% and 39.5%, up from its initial guidance.
Analysts forecast GRGD stock to expand earnings from $2.25 per share in fiscal 2026 to $4.23 in fiscal 2029. If the Canadian stock is priced at 25 times forward earnings, it could double within the next three years.
Is Boyd a top RRSP stock
Boyd Group operates collision repair shops across North America and has a market cap of $3.8 billion.
Chief executive officer Brian Kaner stated that Boyd reported record sales and EBITDA in Q1, grew its location footprint by 33%, and recorded its third consecutive quarter of positive same-store sales growth.
Chief financial officer Jeff Murray added that sales increased 28.1% year over year to a record US$996.7 million, with gross profit rising 29.1% to US$463.7 million. Adjusted EBITDA increased 51.9% year over year to a record US$122.4 million, with margins improving 200 basis points to 12.3%.
Much of that growth came from the acquisition of Joe Hudson, described by Kaner as the largest MSO (management services organization) transaction in the company’s history. Murray noted the deal contributed US$168 million in sales during Q1.
Kaner also explained that the collision repair industry has over 30,000 locations, with the largest players accounting for only a small fraction of that total, leaving plenty of room for continued consolidation.
I like that Boyd is growing through acquisitions and new store openings rather than relying on a single strategy. That combination gives the business multiple ways to keep expanding, even if the broader economy slows down.
Based on consensus estimates, BOYD is forecast to increase earnings from US$2.78 per share in 2025 to US$9.46 per share in 2029. If the TSX stock is priced at 20 times earnings, it could double within the next four years.
The Foolish takeaway
For Canadians trying to catch up on retirement savings, buying strong businesses at a discount inside an RRSP is one of the simplest ways to compound wealth over time.
I believe both Groupe Dynamite and Boyd Group Services are worth a closer look for RRSP investors in July 2026.
