At the time of writing, Canada’s benchmark index is up 26.6% over the past twelve months, but down 2.1% since its January 28, 2026 level. The decline in this index reflects the general state of the market, and several high-quality TSX stocks are trading at deeply discounted levels.
While the withdraw in stock prices could be justified for many, some TSX stocks could become better choices due to the recession. Today I’ll discuss two high-quality TSX stocks that are trading at significant discounts to record highs and are arguably perfectly positioned for value-seeking investors.
Shopify
Shopify Inc. (TSX:SHOP) is a solid long-term buy-and-hold investment in my books, but the Ottawa-based market cap of $199.2 billion tech stocks hasn’t been in the best shape in recent weeks. At the time of writing, Shopify stock is trading at a nearly 40% discount to its 52-week high. The downturn is happening across the economy, but technology stocks seem to be feeling it the most.
That said, the underlying company isn’t doing as bad as its stock market performance suggests. The company reported a 27% year-over-year increase in revenue, its business continues to grow, and there is still room for aspects like Shopify Payments to grow.
Canadian tech stocks may be falling in the stock market right now, but the sell-off seems overdone. A recovery may be on the horizon. Investors can benefit from the positive effect by investing at the current level.
easy
goeasy ltd. (TSX:GSY) has also had a rough year in the stock market, especially since mid-2025. At the time of writing, goeasy stock is trading at a 39.3% discount to its 52-week high. However, at current levels, goeasy may appear attractive to income-oriented investors. After inflation due to falling stock prices, the dividend yield translates to 4.5% annually.
An attractive dividend yield cannot in itself make a stock a good investment. GSY also has a solid business model. The company lends money to subprime lenders and generates significant income from interest income. Demand for consumer loans in the subprime market remains strong.
The company’s management expects gross consumer loan receivables to reach $7.8 billion in 2027, along with improved operating margins. The company itself appears to be doing well and may recover quickly once the dust settles.
Silly takeaway
The short-term concerns weighing on investor sentiment could be a good thing for smart investors who can see through the noise and look at the bigger picture. Certainly, the volatility can wipe away a lot of gains that investors could have made in the short term. However, those with a long investment horizon can identify companies that can bounce back and deliver superior long-term returns.
Shopify stock and goeasy stock have solid financial foundations, strong basicsand proven business models that indicate substantial growth potential in the coming decades. They can be good investments to consider.
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