On this market, it’s arduous for a lot of buyers to seek out actually oversold or undervalued shares to contemplate. That’s for cause – the TSX is buying and selling close to all-time highs, as many international buyers search for alternatives exterior the U.S. market. Because it occurs, the Canadian market has been top-of-the-line locations to take a position in recent times.
I don’t assume that’s going to alter within the close to time period. And over the long run, I feel there’s nonetheless alternatives available, notably with just a few key firms which have seen vital declines of late.
Right here’s one in all my prime concepts for buyers searching for an oversold alternative proper now.
Supply: Getty Photographs
Shopify
Canadian e-commerce large Shopify (TSX:SHOP) has declined a whopping 35% from its current 52-week excessive. Now, whereas the inventory continues to be roughly flat over the course of the previous yr (signalling this transfer is a short-term one in nature), there are the explanation why many buyers are beginning to have a look at this transfer as one which’s value shopping for.
I feel the truth that Shopify’s development engine is reaccelerating is without doubt one of the central tenets to this inventory’s funding thesis. In 2025, Shopify delivered 30% income development and a 17% free money movement margin. That capped off a yr by which This fall income jumped 31% and the free money movement margin hit 19%. Certainly, this mixture of strong top-line development and increasing profitability is strictly what development buyers wish to see as an organization exits its “construct in any respect prices” section and matures right into a disciplined money generator.
On the similar time, gross merchandise quantity (GMV) grew 29% in 2025, roughly tripling GMV in comparison with 2020. This transfer highlights how deeply Shopify has embedded itself because the working system for contemporary commerce. This isn’t a distinct segment platform anymore. It’s a core infrastructure platform for hundreds of thousands of retailers worldwide.
Valuation relative to fundamentals
I feel most buyers are nicely conscious of Shopify’s core development engine, and it’s the important thing cause why Shopify is an organization that’s nonetheless so richly valued after its current intra-year decline.
That stated, regardless of these tailwinds, the inventory is buying and selling roughly 45% under its 52-week excessive, reflecting volatility reasonably than a damaged thesis. Shares stay notoriously unstable, with frequent swings of greater than 5% in a single session, however that volatility will be an ally for affected person consumers keen to build up on weak point.
For Canadian buyers searching for a homegrown tech champion with international scale, double-digit income development, rising free money movement, and a protracted runway in AI-enhanced commerce, Shopify nonetheless stands out as a possible long-term winner. Whereas near-term sentiment can swing with macro headlines or quarterly steerage tweaks, there’s a multi-year development story right here buyers can’t ignore. With a extremely worthwhile and extra targeted administration crew, I feel Shopify’s standing because the entrenched commerce platform for hundreds of thousands of companies around the globe stays intact.
As such, it is a 35% pullback I feel is value contemplating, notably for these pondering 5 or 10 years down the road.