Sometimes, the best opportunities on the TSX show up looking like trouble.
A stock that has fallen 40% should make investors nervous. However, it could also be an opportunity to buy an undervalued stock at a discount if the company is fundamentally strong.
One such beaten-down TSX stock investors should consider owning in August 2026 is Boyd Group Services (TSX:BYD).
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Why is this TSX stock a good buy right now?
Boyd Group Services is one of the largest operators of collision repair centres in North America.
- In Canada, it runs shops under the Boyd Autobody & Glass and Assured Automotive names.
- In the United States, it operates as Gerber Collision and Glass.
The Winnipeg-headquartered company also runs a large retail auto glass business south of the border as well as a mobile scanning and calibration service called Mobile Auto Solutions.
It is a business built on repairing cars after accidents, working closely with insurance companies, and gradually acquiring smaller shops across a fragmented industry.
In the second quarter (Q2) of 2026, Boyd Services grew revenue by 30% year over year and surpassed US$1 billion for the first time. Its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose 45%, widening the margin to 13.4%, up from 12% last year.
Its top-line growth was driven by organic growth and acquisitions, including the purchase of Joe Hudson’s Collision Center. The acquisition added 258 locations to the network. Same-store sales, meaning sales at locations open for more than a year, rose 2.9% in the quarter.
Gross profit rose 31% to US$480 million, with margins improving, driven by better pricing on paint and parts and cost savings from Boyd’s internal efficiency program, Project 360.
Management was pleased with how quickly those savings materialized that it raised its full-year synergy target from the Joe Hudson deal to US$35 million, up from an earlier estimate of US$20 million.
The balance sheet also looks healthier. Net leverage improved to about 2.8 times earnings at quarter-end, down from 3.1 times at the close of fiscal 2025, giving Boyd room to keep acquiring shops without stretching itself too thin.
Why I’m buying this Canadian stock for life
What convinces me most is how management talks about the business.
During the earnings call, CEO Brian Kaner explained the company’s approach to winning customers this way: making sure stores know how to win with the customer isn’t just about a lower average repair cost, good customer satisfaction scores, and shorter rental times. Those are simply the price of admission.
He said the finer details of the relationship with each client are what really carry the day. Kaner also noted the collision repair market has stabilized, with claims volumes down only slightly compared with a year ago, a big improvement from the sharper declines seen previously.
Analysts tracking BYD stock forecast revenue to increase from US$3.14 billion in 2025 to US$5 billion in 2029. In this period, adjusted earnings per share are projected to expand from US$2.78 to US$8.60.
If the Canadian stock is priced at 22 times forward earnings, which is similar to its current multiple, it should more than double within the next three years.
