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 valuable metallic costs, together with renewed investor curiosity in know-how shares, has helped carry Canadian equities.
Regardless of the broader market positive factors, the next two shares proceed to commerce at vital reductions to their 52-week highs for varied causes. Given their discounted valuations and wholesome development prospects, I imagine these shares current engaging shopping for alternatives at present ranges.
goeasy
goeasy (TSX: GSY) is a Mississauga-based various 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 below vital stress, 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 entire mortgage portfolio to $5.4 billion. This development drove a 15% year-over-year improve in income to $440 million. Encouragingly, asset high quality improved because the annualized internet charge-off charge declined 30 foundation factors to eight.9%, supported by larger secured lending and enhancements in underwriting and collections.
Trying forward, credit score demand is prone to stay resilient within the present low-interest-rate surroundings. 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 achieve $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 charge of 11.3%, whereas working margins may increase to 43% by 2027.
As well as, goeasy has elevated its dividend for 11 consecutive years and presently affords a ahead yield of 4.6%. Buying and selling at a gorgeous 1.1 instances next-12-month gross sales and 6.7 instances earnings, the inventory seems undervalued. Given its stable fundamentals and long-term development outlook, goeasy seems to be like a compelling purchase at present ranges.
Lightspeed Commerce
Second on my listing is Lightspeed Commerce (TSX: LSPD), which is presently 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 improve. Progress was pushed by an enlargement in buyer areas, 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%.
Nevertheless, working bills rose 14.2%, primarily as a result 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 by way of the primary three quarters, administration raised its fiscal 2026 outlook, projecting 34% income and 36% gross revenue development. Adjusted EBITDA is predicted to enhance considerably, from $1.3 million in fiscal 2025 to $72 million this yr.
Lightspeed continues to spend money on innovation, together with AI-powered instruments, whereas specializing in price self-discipline and operational effectivity to boost profitability. In addition to, the corporate’s administration expects gross revenue to develop at a 15–18% compound annual charge by way of fiscal 2028, with adjusted EBITDA increasing at a 35% annualized charge. Given its robust development outlook and 15 instances next-12-month earnings valuationI stay bullish on Lightspeed.