3 TSX Stocks to Watch This Month

CN Rail (TSX:CNR) and other TSX blue chips worth loading up on as they go on sale this autumn season.

Key Points
  • Recent market jitters have knocked down several winners, creating potential dip-buying chances in Shopify, CN Rail, and TD Bank.
  • Shopify could benefit from AI-driven “agentic” shopping, CN Rail looks reasonably valued with steady shipping and efficiency upside, and TD may have more room to run with AI initiatives and a planned $10B share buyback.

October has kicked off as has the start of the fourth quarter of 2026. And, for the most part, it’s a rather uneasy start to the month, with some names that have been “working well” starting to show signs of weakness. For value-focused dip-buyers, this is a good thing, but for those easily rattled by more volatility, perhaps it’s time to ask oneself if it’s time to take a bit of profit off the table.

In this piece, we’ll look at three names that I think are worth consideration after falling under pressure in recent weeks and months.

chart reflected in eyeglass lenses

Source: Getty Images

Shopify

Shopify (TSX: SHOP) has been a ridiculously volatile name to hang onto in the past two years, but if you stayed the course, you’d be up around 100%. With shares chopping around viciously as investors digest the full extent of the AI impact and the rise of consumer-facing agentic platforms that could kick AI shopping into high gear (it’s gone from concept to reality with the launch of Meta Platforms‘ Muse).

While Amazon has closed the door on Meta’s agent, at least for now, I do think that Amazon is an AI powerhouse with agentic ambitions of its own. So, in a way, closing the door, at least in these early days, makes the most sense. Either way, Shopify looks like a real winner in these early days, as some agent users entrust their Muse (or other agents) with their credit cards. It’s going to be interesting.

But either way, I think agentic shopping bodes very well for Shopify and its merchant base, as their discovery looks to get a huge, much-needed shot in the arm. While Shopify stock has come back in recent months, I still think there’s value to be had as the $273 billion titan looks to rise as Canada’s top AI beneficiary. Shares are off just 13% from all-time highs and could be headed for a breakout if all goes well with the AI shopping revolution.

CN Rail

Up next, we have CN Rail (TSX: CNR), which saw its sharp early-2026 rally come to a screeching halt. I don’t think the run is over just yet, even as shares come in now down around 9% from highs. With a solid 2.2% dividend yield and a very fair 21.4 times trailing price-to-earnings (P/E) multiple, I wouldn’t step offboard quite yet.

A fair price and a decent payout seem worthwhile, especially when you consider the potential for grain shipments to stay strong while management does its best to drive operating economics. Indeed, CN Rail used to be renowned for its operating efficiencies and as AI tailwinds approach the sector, my guess is that CN Rail will be back on the high track.

TD Bank

Finally, we have TD Bank (TSX: TD), which has gone flat in recent months in a seeming digestion phase after the big multi-year rally. Are shares pricey here at 17.9 times trailing P/E with a pretty low 2.7% yield? It depends on who you ask. Yield seekers probably don’t see much value to be had here. That said, the bank has committed to scooping up as much as $10 billion worth of shares. Perhaps there’s still value in the name that’s not immediately recognizable from traditional valuation metrics.

In my view, AI efforts, including the bank’s collab with Cohere for AI banking tools (a $25 million mini-bet of sorts), are a move that could pay dividends and unlock huge value. With agentic tech taking off, I do think that banks can profit from the technology rather than feel competitive threats. As such, the buyback announcement is a hint that the name still has value even at these heights.

Fool contributor Joey Frenette has positions in Amazon, Canadian National Railway, Meta Platforms, and Toronto-Dominion Bank. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Amazon, Canadian National Railway, and Meta Platforms. The Motley Fool has a disclosure policy.

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