The wider stock market maintained the upward process in 2025, with many Canadian shares that register considerable growth. Despite the rally, some fundamentally strong shares remain undervalued at the current level, with a purchase option for long -term investors.
Against this background there are two TSX shares that act under their intrinsic value, but have a considerable growth potential.
pushy
pushy (TSX: GSY) is one of the best undervalued shares that offer high growth and reliable dividend income. This Canadian financial service provider specializes in non-Prime Consumer Loans and has yielded strong financial results. Thanks to the strong income, the company has rewarded shareholders with higher dividend payments. Moreover, Goosy shares has consistently achieved above-average capital profits.
In the past five years, Goeesy’s top line with a compound annual growth rate (CAGR) of 22.7% (as of 30 June) has grown. Higher turnover, together with the operational leverage, has led to considerable growth in the bottom line, which grew with a CAGR of 23% in the same period. It is striking that Goosy shares have risen more than 289% in the last five years, which means a CAGR of 31.2%. In addition to solid capital profits, Gheasy has had consistently paid dividends for 21 years and has increased his dividend for 11 consecutive years.
Looking ahead, Goeesy is ready to deliver solid growth. With its leadership in Canada’s non-Prime leasing and loan space and access to a diverse range of sources of financing, the company is ready to continue to expand its consumer lens portfolio. Furthermore, the focus on diversifying its product range and widening its distribution channels will enable it to acquire more customers, so that it is well placed to grow its top line. Although the income can continue to grow with a solid double figures, the strong insurance options, the steady credit and payment performance and operational efficiency will lay the foundation for continuing profitable growth.
Although Goeesy has a considerable growth potential, the stock remains attractively priced. With a forward price-win stratio of 10.3, Peele trades shares with a rating that does not justify his robust profit growth with double digits, an increasing dividend and a high return on equity (roe). This makes it a compelling choice for long -term investors.
Light speed
Lightspeed -trade (TSX: LSPD) Stock shows signs of a promising change after taking an important hit at the beginning of 2025. The decision of this Canadian tech giant to be publicly mentioned instead of going private, did not go well with the investors, which led to a sharp sale. Although LSPD shares are still acting in the ROD on an annual basis, it bounced more than 20% back in the last three months, thanks to the improving basic principles.
Despite the improved underlying trends, light -speed supply remains undervalued. It is traded on the next 12-month (NTM) Enterprise-Value-to-Sales (EV/Sales) multiple of one, which is low in view of the growing scale, focus on profitability, increase in customer locations in core markets of North America and Europe, and rising average turnover per user (ARPU). This attractive valuation makes it one of the best undervalued shares to buy now for long -term growth.
Lightspeed will benefit from the shift in sales models to Omnichannel Commerce. The focus on increasing his presence in North America and the European markets will help to attract more high-quality customers and improve overall profitability. Moreover, the company uses various income flows and expands its worldwide payment platform that will further improve margins. As the approval of light speed payments increases, the profit is expected to increase, to support the restoration of its shares.
With its low appreciation, adapted free cash flow that is approaching break life and a strong momentum about its payments, capital and software segments, Lightspeed seems well positioned for long-term, sustainable growth.
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