The Canadian inventory market had a terrific yr for many of 2025, significantly from early April to the top of the yr. The S&P/TSX Composite Index climbed by virtually 41% between April 8 and December 31, 2025. The Canadian benchmark index began 2026 with the identical momentum, however has since began to stoop.
As of this writing, the Canadian benchmark index is up by 26.6% within the final 12 months, however down by 2.1% since its January 28, 2026, degree. The downturn on this index displays the general state of the market, and several other high-quality TSX shares commerce at closely discounted ranges.
Whereas the pullback in share costs is likely to be justified for a lot of, some TSX shares would possibly turn out to be higher picks because of the downturn. At the moment, I’ll talk about two high-quality TSX shares that commerce at substantial reductions from all-time highs, and arguably, are completely positioned for value-seeking buyers.
Shopify
Shopify Inc. (TSX:SHOP) is a stable long-term buy-and-hold funding in my books, however the Ottawa-headquartered $199.2 billion market-cap tech inventory has not been in the most effective form in latest weeks. As of this writing, Shopify inventory trades at an virtually 40% low cost from its 52-week excessive. The downturn is happening all through the financial system, however tech shares appear to be feeling it probably the most.
That stated, the underlying enterprise shouldn’t be doing as poorly as its inventory market efficiency would possibly recommend. The corporate reported a 27% year-over-year uptick in gross sales, its enterprise enterprise continues to scale, and there’s nonetheless room for facets like Shopify Funds to develop.
The Canadian tech inventory is likely to be declining on the inventory market proper now, however the sell-off appears overdone. A restoration is likely to be on the playing cards. Traders can seize the upside by investing at present ranges.
goeasy
goeasy Ltd. (TSX:GSY) has additionally had a tricky yr on the inventory market, significantly for the reason that midway mark in 2025. As of this writing, goeasy inventory trades at a 39.3% low cost from its 52-week excessive. Nonetheless, goeasy may appear enticing to income-focused buyers at present ranges. After the inflation because of declining share costs, its dividend yield interprets to an annualized 4.5%.
A horny dividend yield can’t make a inventory a very good funding by itself. GSY additionally has a stable enterprise mannequin. The corporate lends to subprime lenders, producing vital revenues from curiosity earnings. The demand for shopper loans within the subprime market continues to remain sturdy.
The corporate’s administration expects gross shopper mortgage receivables to ship as much as $7.8 billion by 2027, alongside improved working margins. The corporate itself appears to be doing effectively and is likely to be fast to get better as soon as the mud settles.
Silly takeaway
The short-term considerations that weigh on investor sentiment generally is a good factor for savvier buyers who can see via the noise to the larger image. Positive, the volatility can wipe away loads of beneficial properties that buyers might need captured within the brief time period. Nonetheless, these with a protracted funding horizon can determine firms that may get better and ship superior long-term returns.
Shopify inventory and goeasy inventory have stable monetary foundations, sturdy fundamentals, and confirmed enterprise fashions that point out substantial progress potential within the coming many years. They are often good investments to contemplate.
