After a decline on the finish of final month, the S&P/TSX Composite Index has rebounded strongly, climbing 4.2% this month and advancing 4.9% yr to this point. A restoration in treasured steel costs, together with renewed investor curiosity in expertise shares, has helped raise Canadian equities.
Regardless of the broader market beneficial properties, the next two shares proceed to commerce at important reductions to their 52-week highs for numerous causes. Given their discounted valuations and wholesome development prospects, I consider these shares current enticing shopping for alternatives at present ranges.
goeasy
goeasy (TSX: GSY) is a Mississauga-based different monetary providers firm that gives leasing and lending options to non-prime clients. Following a short-seller report from Jehoshaphat Analysis and weaker-than-expected third-quarter earnings, the inventory has come underneath important strain, falling greater than 40% from its 52-week excessive.
In the meantime, goeasy continues to ship stable working outcomes. Mortgage originations reached $946 million within the quarter, increasing the overall mortgage portfolio to $5.4 billion. This development drove a 15% year-over-year enhance in income to $440 million. Encouragingly, asset high quality improved because the annualized internet charge-off price declined 30 foundation factors to eight.9%, supported by larger secured lending and enhancements in underwriting and collections.
Wanting forward, credit score demand is more likely to stay resilient within the present low-interest-rate setting. With expanded product choices and a broader distribution community, goeasy is well-positioned to seize this demand. Its next-generation credit score fashions, tighter underwriting requirements, and disciplined assortment practices ought to additional strengthen asset high quality and long-term profitability.
In the meantime, the corporate’s administration expects the mortgage portfolio to succeed in $7.35–$7.75 billion by 2027, implying roughly 39% development on the midpoint from present ranges. Additionally, the administration expects its income to develop at a compound annual price of 11.3%, whereas working margins may develop to 43% by 2027.
As well as, goeasy has elevated its dividend for 11 consecutive years and at present gives a ahead yield of 4.6%. Buying and selling at a horny 1.1 occasions next-12-month gross sales and 6.7 occasions earnings, the inventory seems undervalued. Given its stable fundamentals and long-term development outlook, goeasy appears like a compelling purchase at present ranges.
Lightspeed Commerce
Second on my listing is Lightspeed Commerce (TSX:LSPD), which is at present buying and selling about 37% beneath its 52-week excessive. Though the corporate delivered stronger-than-expected third-quarter fiscal 2026 outcomes, increasing internet losses have weighed on investor sentiment, dragging the inventory down.
Lightspeed reported income of $312.3 million, surpassing analysts’ expectations of $311.3 million and marking an 11% year-over-year enhance. Progress was pushed by an growth in buyer places, an 11% rise in common income per person (ARPU), and better gross transaction and gross processing volumes. Gross revenue elevated 15%, whereas the gross margin expanded 200 foundation factors to 43%.
Nonetheless, working bills rose 14.2%, primarily on account of larger amortization of intangible property, widening internet losses from $26.6 million to $32.8 million yr over yr. On an adjusted foundation, earnings per share got here in at $0.15, up 25% from the prior-year quarter.
Inspired by stable efficiency via the primary three quarters, administration raised its fiscal 2026 outlook, projecting 34% income and 36% gross revenue development. Adjusted EBITDA is anticipated to enhance considerably, from $1.3 million in fiscal 2025 to $72 million this yr.
Lightspeed continues to put money into innovation, together with AI-powered instruments, whereas specializing in price self-discipline and operational effectivity to reinforce profitability. In addition to, the corporate’s administration expects gross revenue to develop at a 15–18% compound annual price via fiscal 2028, with adjusted EBITDA increasing at a 35% annualized price. Given its sturdy development outlook and 15 occasions next-12-month earnings valuation, I stay bullish on Lightspeed.
