2 Bargain TSX Stocks to Buy While They Are Still Cheap

After a decline at the end of last month, the S&P/TSX Composite Index has rebounded strongly, climbing 4.2% this month and advancing 4.9% year to date. A recovery in precious metal prices, along with renewed investor interest in technology stocks, has helped lift Canadian equities.

Despite the broader market gains, the following two stocks continue to trade at significant discounts to their 52-week highs for various reasons. Given their discounted valuations and healthy growth prospects, I believe these stocks present attractive buying opportunities at current levels.

goeasy

goeasy (TSX: GSY) is a Mississauga-based alternative financial services company that provides leasing and lending solutions to non-prime customers. Following a short-seller report from Jehoshaphat Research and weaker-than-expected third-quarter earnings, the stock has come under significant pressure, falling more than 40% from its 52-week high.

Meanwhile, goeasy continues to deliver solid operating results. Loan originations reached $946 million in the quarter, expanding the total loan portfolio to $5.4 billion. This growth drove a 15% year-over-year increase in revenue to $440 million. Encouragingly, asset quality improved as the annualized net charge-off rate declined 30 basis points to 8.9%, supported by higher secured lending and enhancements in underwriting and collections.

Looking ahead, credit demand is likely to remain resilient in the current low-interest-rate environment. With expanded product offerings and a broader distribution network, goeasy is well-positioned to capture this demand. Its next-generation credit models, tighter underwriting standards, and disciplined collection practices should further strengthen asset quality and long-term profitability.

Meanwhile, the company’s management expects the loan portfolio to reach $7.35–$7.75 billion by 2027, implying roughly 39% growth at the midpoint from current levels. Also, the management expects its revenue to grow at a compound annual rate of 11.3%, while operating margins could expand to 43% by 2027.

In addition, goeasy has increased its dividend for 11 consecutive years and currently offers a forward yield of 4.6%. Trading at an attractive 1.1 times next-12-month sales and 6.7 times earnings, the stock appears undervalued. Given its solid fundamentals and long-term growth outlook, goeasy looks like a compelling buy at current levels.

Lightspeed Commerce

Second on my list is Lightspeed Commerce (TSX:LSPD), which is currently trading about 37% below its 52-week high. Although the company delivered stronger-than-expected third-quarter fiscal 2026 results, expanding net losses have weighed on investor sentiment, dragging the stock down.

Lightspeed reported revenue of $312.3 million, surpassing analysts’ expectations of $311.3 million and marking an 11% year-over-year increase. Growth was driven by an expansion in customer locations, an 11% rise in average revenue per user (ARPU), and higher gross transaction and gross processing volumes. Gross profit increased 15%, while the gross margin expanded 200 basis points to 43%.

However, operating expenses rose 14.2%, primarily due to higher amortization of intangible assets, widening net losses from $26.6 million to $32.8 million year over year. On an adjusted basis, earnings per share came in at $0.15, up 25% from the prior-year quarter.

Encouraged by solid performance through the first three quarters, management raised its fiscal 2026 outlook, projecting 34% revenue and 36% gross profit growth. Adjusted EBITDA is expected to improve significantly, from $1.3 million in fiscal 2025 to $72 million this year.

Lightspeed continues to invest in innovation, including AI-powered tools, while focusing on cost discipline and operational efficiency to enhance profitability. Besides, the company’s management expects gross profit to grow at a 15–18% compound annual rate through fiscal 2028, with adjusted EBITDA expanding at a 35% annualized rate. Given its strong growth outlook and 15 times next-12-month earnings valuation, I remain bullish on Lightspeed.

The post 2 Bargain TSX Stocks to Buy While They Are Still Cheap appeared first on The Motley Fool Canada.

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More reading

• 2 of the Best TSX Stocks to Buy Before They Start to Recover
• When Doing Nothing Is the Smartest Investment Move
• 2 Unstoppable TSX Stocks to Buy in 2026 and Hold Forever
• Turnaround Stocks to Buy Now Before Everyone Else Sees Their True Potential
• 1 Practically Perfect Canadian Stock Down 40% to Buy and Hold Forever

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.