2025 was a greater yr for the TSX Index than most individuals thought. But, even with the TSX up 29% this yr, many Canadian progress shares underperformed and even declined for the yr. This presents alternatives for 2026.
You should buy high-quality progress shares at a few of their lowest valuations in years. If you wish to be opportunistic, listed here are three I’d purchase with $2,000 proper now.
An actual property progress story
For a actual property inventory, Mainstreet Fairness (TSX:MEQ) has delivered distinctive long-term returns. Its inventory is up 131% prior to now 5 years and 500% prior to now 10 years.
Mainstreet buys and operates older, centrally positioned house blocks throughout Western Canada. These are typically unregulated markets, offering essentially the most flexibility to steadily increase rents.
The rental house investor should purchase these flats at far beneath alternative value. It has a value-add technique whereby it may repair the buildings up, stabilize the properties, and lift the rents over time.
Presently, residential properties are going through a troublesome market. Mainstreet has substantial liquidity to supercharge its acquisition technique. It’s buying and selling at its lowest valuation prior to now three years. This could possibly be a great time so as to add this high quality actual property compounder.
A community inventory with a long-term future
Descartes Programs Group (TSX:DSG) has likewise delivered nice long-term returns for shareholders. This inventory is up 347% over the previous 10 years. But, Descartes’ inventory is down 25% this yr.
One would suppose there’s something unsuitable with the enterprise. Nevertheless, Descartes has delivered file outcomes in 2025. Yr-to-date, revenues are up 11% to $536 million, and EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) is up 15% to $240 million! It earns an unimaginable 45% EBITDA margin!
Descartes operates a vital transportation community across the globe. Its numerous software program companies save shippers, transporters, and logistics suppliers time, cash, and energy. Though it has been a really tough freight setting, Descartes has been taking market share.
This firm generates lots of money. Consequently, it has a really wealthy stability sheet with over $278 million of internet money. Descartes has a historical past of constructing good acquisitions. It is vitally more likely to proceed this development.
Descartes’ high-quality enterprise has all the time demanded a premium valuation. But, regardless of nice execution, this inventory is buying and selling at its lowest valuation since 2020. Now looks as if a lovely alternative so as to add this nice community enterprise.
A small-cap software program inventory with tonnes of progress forward
With a market cap of $573 million, VitalHub (TSX:VHI) is the small-cap decide on this combine. Like its friends above, it has been an awesome inventory over the long run. It’s up 214% prior to now 5 years!
VitalHub gives software program to area of interest areas of the healthcare market. It primarily works with public well being methods in Canada, the U.Okay., the Center East, and Australia. Like Descartes, VitalHub helps streamline processes and guarantee higher well being outcomes.
Just like the shares above, it has delivered robust leads to 2025. For the primary 9 months, revenues are up 62% and adjusted EBITDA is up 49%!
VitalHub is loaded with $123 million of money that it may use to deploy into acquisitions. It has an awesome historical past of buying and integrating smaller software program companies. Acquisitions will possible present additional progress for the long run. This inventory is a superb purchase after it has fallen 17% this yr.
