Despite the fact that TSX shares proceed to cost larger in 2026 (from big years in 2025 and 2024), there are nonetheless some nice bargains to be discovered. The one downside is that you’ll have to be a purchaser when it’s extremely unpopular to take action.
No one needs to catch a falling knife. But, typically shopping for a TSX inventory that has been hated by the market might be a tremendous alternative, particularly for a long-term investor. When you don’t thoughts being a contrarian, listed below are two TSX shares that may very well be superb offers.
Constellation Software program: This TSX inventory is down 40%, however this story isn’t over
It has been an unpleasant 12 months for Constellation Software program (TSX:CSU). This TSX inventory is down 15% in 2026 alone. That’s after a 25% decline in 2025. Buyers have given up all their good points since early 2023.
The decline just isn’t as a result of poor operational or monetary efficiency. For the primary 9 months of the 12 months, revenues elevated 15% to $8.446 billion, money from operations rose 28% to $1.9 billion, and free money circulate elevated 27% to $1.26 billion. Actually, there’s not a lot to dislike about these outcomes. It has delivered outcomes like this for years.
The massive concern is synthetic intelligence’s impression on Constellation’s +1,000 area of interest software program corporations. Many traders are fearful that competitors from new AI software program options may quickly steal Constellation’s market share.
Actually, AI is a big danger. The market has already downgraded Constellation’s valuation to consider a few of these terminal dangers. But, the market isn’t factoring in how AI may doubtlessly profit/increase its enterprise. It could all steadiness out ultimately, and this downdraft may very well be a severe overreaction.
Constellation’s inventory is buying and selling close to its least expensive valuation in 5 years. When you don’t thoughts the chance, this may very well be an distinctive alternative so as to add an awesome compounding TSX inventory.
Propel Holdings: This TSX inventory is down 32% however rising quickly
One other TSX development inventory that has been down within the dumps is Propel Holdings (TSX:PRL). Whereas it is just down 1% in 2026, it fell 31% in 2025.
AI is definitely a significant a part of Propel’s enterprise. It makes use of AI algorithms to investigate tons of of things when it affords its shopper loans. This firm has been rising by +40% per 12 months for nearly 5 years. Final 12 months, its development barely moderated, and the inventory swiftly declined.
But, this firm nonetheless has an enormous development runway. It simply expanded into the U.Ok. It should begin to see synergies and margin enhancements from its acquisition there. It’s gaining traction from its lending-as-a-service platform. The corporate simply introduced progress to changing into a financial institution as properly.
Proper now, Propel trades for less than eight instances ahead earnings. This TSX inventory has a gorgeous 4.4% yield. For an organization rising by not less than a 20% fee per 12 months, it looks like an distinctive discount.
The Silly takeaway
Typically, to get the perfect returns, it is advisable take a contrarian strategy to the market. The truth is, drawdowns can present the best alternatives to upsize your long-term returns.
After huge drawdowns, TSX shares like Constellation and Propel don’t look too engaging. Nonetheless, in the event you can look previous the near-term dank sentiment, there may very well be sunnier days forward.
