Although the Canadian equity market has turned volatile in recent weeks, the S&P/TSX Composite Index remains about 13.5% higher year to date and is just 2.9% below its all-time high. Elevated commodity prices and resilient corporate earnings have supported the broader market. However, several fundamentally strong stocks have come under pressure and are now trading at significant discounts to their recent highs. With solid underlying businesses, healthy financials, and attractive long-term growth prospects, these three stocks could offer compelling opportunities for long-term investors.
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Waste Connections
Waste Connections (TSX: WCN) is a non-hazardous solid waste management company serving secondary and exclusive markets across the United States and Canada. The stock has faced pressure in recent months and currently trades more than 13% below its 52-week high. Softer volume trends, weaker recycled commodity prices, higher capital expenditures, and delays in reopening its Chiquita Canyon Landfill have weighed on investor sentiment and contributed to the pullback.
However, the company’s underlying fundamentals remain resilient. Revenue and adjusted EBITDA grew 6.4% and 6.8%, respectively, in the recently reported second quarter, while its adjusted EBITDA margin expanded by 10 basis points to 32.8%. Waste Connections is also pursuing growth through acquisitions and organic expansion. Supported by its strong balance sheet and healthy cash flows, management expects acquisition activity to be above average this year. Meanwhile, after commissioning seven renewable natural gas (RNG) facilities, the company plans to bring another five online by year-end. With resilient financials, multiple growth drivers, and a share price well below its recent high, Waste Connections could offer an attractive opportunity for long-term investors.
Celestica
Second on my list is Celestica (TSX: CLS), which provides critical infrastructure and advanced technology solutions for the rapidly expanding AI and cloud computing markets. Although the stock is still up around 19% this year, it has pulled back more than 26% from its recent high amid the broader selloff in AI-related stocks. This decline has also brought its valuation to more attractive levels, with forward price-to-sales and price-to-earnings multiples of approximately 1.4 and 22.1, respectively.
The rapid adoption of AI is prompting hyperscalers to significantly expand their data centre infrastructure, creating substantial long-term opportunities for Celestica. The company is investing in product innovation and expanding its manufacturing capabilities to capitalize on this growing demand. It recently raised its 2026 guidance and now expects revenue and EPS to grow by 65% and 87%, respectively. Management also expects growth to accelerate next year, supported by robust customer demand and an expanding pipeline of new program wins. With strong financial momentum, attractive valuation, and significant exposure to long-term AI infrastructure growth, Celestica could offer an attractive opportunity for long-term investors.
Northland Power
My final pick is Northland Power (TSX: NPI), which develops, owns, and operates a diversified portfolio of energy infrastructure assets. The stock has delivered solid gains this year, rising 24.8% year to date, but still trades about 16% below its 52-week high. Its valuation also appears relatively attractive, with forward price-to-sales and price-to-earnings multiples of approximately 2.2 and 14.1, respectively.
Northland Power is well positioned to benefit from the global transition toward cleaner energy, which could support significant long-term demand for its projects. The company plans to invest $5.8–$6.6 billion through the end of the decade, aiming to double its power-generation capacity to approximately 7 gigawatts. It is also pursuing cost optimization and operational efficiencies, with initiatives expected to generate approximately $50 million in annual savings from 2028. Furthermore, its development pipeline of roughly 10 gigawatts provides substantial scope for future capacity expansion. With an attractive valuation, a growing asset base, and a sizable development pipeline, Northland Power could offer an appealing opportunity for long-term investors.
