The Underperformers: Canadian Stocks That Missed the Mark in 2025

It was an impressive year for Canadian investors, with the TSX surging nearly 30% in 2025 (well, 28% or so, but who’s counting?). With those kinds of returns, investors would be correct in assuming it would be hard to find significant losers.

Well, winners and losers are what make markets, and I think it’s just as important to focus on companies that are soaring as those that are struggling.

In this piece, I’m going to highlight two Canadian stocks which underperformed over the course of the past year, and detail why I think this dip may be one worth buying.

TFI International

Trucking giant TFI International (TSX:TFII) is one company I would have guessed would have been down to start the year. Indeed, amid all the concerns around president Trump’s trade policies and stark shifts from a North American focus to an “American first” focus, cross-border shipping volumes have been hit hard.

Additional tariff-related concerns have led TFI’s LTL business to take a hit. Margins deteriorated, and revenue came in lower on a year-over-year basis. That’s not something fundamentally-conscious investors will want to see.

Now, I do think that there may be some silver linings here. For one, the freight business is very cyclical. These tariff and trade concerns are likely going to be temporary. In that context, TFII stock trading at a 50% discount to its peak near the end of 2024 at one point last year would have turned out to be a great entry point.

I think 2026 could turn out to be a better year for TFI and other freight-related names, particularly if the balance of power shifts in Washington come midterms. This is a cautious and speculative buy in my books, but TFI is starting to look attractive now.

Computer Modelling Group

Another decliner in 2025, losing nearly 40% of its value on the year, Computer Modelling Group (TSX:CMG) is one company I haven’t highlighted much in the past, but probably should have.

This software and consulting company represents a growth stock that has been hit by similar macro concerns, though in a different context. Carbon capture and storage are among two of the company’s leading technologies, which clearly are not in favor in the U.S. right now. Accordingly, it will be interesting to see whether a shift in power may have a material impact on this stock moving forward.

I like CMG’s chart going back to the pandemic era. In fact, this is a company with one of the best charts over the course of the past five years, at least up to 2025.

If we do see a bullish narrative build once again among top growth names, this is a stock I think could have an excellent 2026. There are simply too many positive narratives building under the surface to not pay attention.

The post The Underperformers: Canadian Stocks That Missed the Mark in 2025 appeared first on The Motley Fool Canada.

Should you invest $1,000 in Computer Modelling Group Ltd. right now?

Before you buy stock in Computer Modelling Group Ltd., consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Computer Modelling Group Ltd. wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,827.88!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of January 15th, 2026

More reading

• The Best Canadian AI Stocks to Buy for 2026
• Undervalued Canadian Stocks to Buy Now
• Down 32%, This Passive Income Stock Still Looks Like a Buy
• 1 Outstanding TSX Stock Down 33% to Buy and Hold Forever

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Computer Modelling Group and TFI International. The Motley Fool has a disclosure policy.