2 Stocks to Buy if the Market Pulls Back

These two TSX stocks offer ways to prepare for the next market pullback, with fast growth and steady profitability.

Key Points
  • Shopify posted 34% YoY revenue growth in its latest quarter while its free cash flow rose 55%.
  • CGI generated $605 million in operating cash flow last quarter and finished June with a $31.8 billion backlog.
  • A broader market pullback could create more attractive entry points into both technology stocks for long-term investors.

The best time to decide which stocks you want to buy is usually before the market starts falling. Once volatility hits, market noise gets louder, prices move quickly, and it becomes much more difficult to separate a real problem from simple market fear.

That is why a watchlist could be really useful. And a good one should include businesses that are still growing, producing cash, and building for the future even when investors become more cautious. Right now, that feels especially important because Canadian stocks have already had a strong run so far in 2026, while the outlook for growth, rates, trade, and geopolitics remains far from settled. A pullback wouldn’t automatically make every stock attractive, but it could create better prices for companies with strong fundamentals that are already delivering solid results.

Here are two TSX stocks I would be ready to buy if the market gives investors a better opportunity.

Financial analyst reviews numbers and charts on a screen

Source: Getty Images

Shopify stock

If a market pullback creates a better entry point into a proven growth business, I would definitely consider adding more shares of Shopify (TSX: SHOP) to my portfolio.

The Ottawa-based commerce platform provider’s stock currently trades at $210.04 per share with a market cap of about $263 billion.

Despite some volatility, Shopify shares have built strong momentum in recent months. While the stock was down about 5% year-to-date, it had climbed nearly 30% over the previous three months.

Its strong results have helped Shopify stock gain strength in recent months. In the second quarter, the company’s revenue jumped 34% year-over-year (YoY) to US$3.6 billion. Its gross merchandise volume rose 32% with continued growth in sales processed through the platform. Last quarter, the firm’s merchant solutions revenue rose 37%, while subscription solutions revenue increased 22%.

More importantly, profitability and cash generation improved at the same time. Notably, Shopify’s gross profit climbed 31% YoY, while operating income advanced by 68%.

Shopify is delivering rapid growth while becoming more profitable and generating more cash. If broader market weakness pushes the stock even lower, that combination could make it even more attractive for long-term investors.

CGI stock

Another stock worth keeping on the watchlist for a market pullback is CGI (TSX: GIB.A), especially for investors who prefer a more established technology business with strong cash generation.

The company mainly provides information technology and business consulting services, including systems integration, managed services, and digital transformation solutions. After struggling so far in 2026, its shares recently closed at $95.83 per share, giving it a market cap of roughly $18 billion.

In the third quarter of its fiscal year 2026 (ended in June), CGI’s revenue rose 2.5% YoY, while net earnings climbed nearly 14% to $465 million.

Moreover, the company is also seeing opportunities as clients focus more heavily on artificial intelligence (AI), modern data, cybersecurity, and organizational readiness. Those areas could support more modernization and digital transformation work over time.

With strong cash flow, steady profitability, and a deep backlog already supporting future business, CGI could become even more appealing if another broad market pullback puts additional pressure on its shares.

Fool contributor Jitendra Parashar has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends CGI. The Motley Fool has a disclosure policy.

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